Every year, lakhs of Indians type “ppf calculator” into Google with the same question: if I put money into PPF every year, what will I actually get at the end? The Public Provident Fund has been around for decades, and it is still one of the few investments where the government guarantees both the returns and the tax treatment. But the answer depends on three things — how much you deposit, the current ppf interest rate, and one timing trick most people miss. Let us work through all of it with real numbers.
PPF calculator: how the ₹40.68 lakh figure is worked out
PPF interest is compounded once a year, at the rate the government announces every quarter. As of the October–December 2026 quarter, that rate is 7.1% per annum. The maximum you can deposit in a financial year is ₹1.5 lakh, and the minimum to keep the account active is just ₹500.
If you deposit the full ₹1.5 lakh at the start of each financial year for 15 years, the maturity value is calculated like this:
Maturity = yearly deposit × [((1 + r)^n − 1) ÷ r] × (1 + r)
With r = 7.1% and n = 15 years, ₹1.5 lakh a year grows to ₹40.68 lakh. You deposited ₹22.5 lakh in total, so about ₹18.18 lakh of that is interest — earned completely tax-free.
Here is what different yearly deposits become over 15 years at 7.1%:
| Yearly deposit | Total invested | PPF maturity amount |
|---|---|---|
| ₹50,000 | ₹7.5 lakh | ₹13.56 lakh |
| ₹1,00,000 | ₹15 lakh | ₹27.12 lakh |
| ₹1,50,000 | ₹22.5 lakh | ₹40.68 lakh |
Notice the pattern: the interest portion is roughly 45% of the final amount in every row. That is the quiet power of 15 years of compounding — nearly half your maturity amount is money your money earned.
One honest note before you go further: the 7.1% rate is not fixed forever. The government revises the ppf interest rate every quarter, and while it has stayed at 7.1% since April 2020, it can change. Always check the current rate before making decisions — every ppf calculator, including ours, is only as good as the rate you feed into it.
The April 5 trick most people miss
Here is something PPF veterans know and beginners usually do not: interest for a month is calculated on the lowest balance between the 5th and the last day of the month. This one rule decides whether your deposit earns interest for April or not.
If you deposit ₹1.5 lakh on April 4, it counts for the whole month, and over the full year it earns ₹10,650 in interest. If you deposit the same ₹1.5 lakh on April 6, you lose April’s interest — roughly ₹887 gone, for no reason except two days of delay.
This is why experienced investors make their full yearly PPF deposit in the first week of April instead of splitting it into monthly instalments. Monthly deposits of ₹12,500 reach the same ₹1.5 lakh total, but money deposited in later months earns interest for fewer months. The lump-sum-in-April approach squeezes the maximum out of the same money.
If a lump sum in April is not possible for you, do not skip the year — depositing late still beats not depositing. But if you can arrange it, the first week of April is the single highest-value week in the PPF calendar.
PPF vs FD: why the smaller number wins
A common objection goes like this: “My bank FD offers 7.5%, which is more than PPF’s 7.1%. Why should I choose PPF?” The answer is tax.
PPF enjoys EEE status — exempt at all three stages. Your deposit qualifies for a tax deduction (under the old tax regime), the interest you earn every year is tax-free, and the maturity amount is tax-free. An FD has none of this: its interest is added to your income and taxed at your slab rate.
Watch what happens over 15 years with ₹1.5 lakh a year. In the 30% tax bracket, a 7.5% FD effectively earns only about 5.25% after tax. That grows to roughly ₹34.72 lakh. The PPF at 7.1%, fully tax-free, grows to ₹40.68 lakh. The “lower” rate wins by nearly ₹6 lakh — purely because of tax.
The gap shrinks if you are in a lower tax bracket or use the new tax regime (where the PPF deposit deduction does not apply). But the interest and maturity stay tax-free in every regime, which keeps PPF ahead for most long-term savers.
Before you trust any PPF calculator: 4 honest checks
A calculator gives you a clean number, but four realities sit behind that number. Know them before you commit.
1. The rate can move. Every projection here uses 7.1%, the rate for the October–December 2026 quarter. If the government cuts it to 6.8% next year, your actual maturity will be lower. Treat calculator results as estimates, not promises.
2. EEE needs the old tax regime for the full benefit. The deposit deduction only helps if you file under the old regime. Under the new regime you get no deduction — though the interest and maturity remain tax-free, which is still valuable.
3. Your money is locked for 15 years. Partial withdrawals are allowed only from the 7th financial year, and even then with limits. A loan facility exists from the 3rd year (up to 25% of the balance), but PPF is not an emergency fund. Do not put money here that you might need in five years.
4. You can extend — and extension is where it gets interesting. After 15 years, you can extend the account in blocks of 5 years, with or without fresh deposits. Continuing ₹1.5 lakh a year for 20 years total turns ₹30 lakh invested into about ₹66.58 lakh. Stretch to 25 years and you cross ₹1 crore on ₹37.5 lakh invested. Time does the heavy lifting; the extension option lets you give it more time.
Try your own numbers
The examples above use round figures, but your situation will differ — maybe you can only manage ₹60,000 a year, or you want to see the 20-year extension. Try the PPF Calculator → — enter your yearly deposit and the current rate to get your exact maturity value, interest earned, and total invested.
For the official scheme rules, the government’s press releases on small savings schemes are the most reliable source — they confirm the 15-year tenure, the ₹1.5 lakh yearly limit, and the tax-free interest treatment.
PPF will not make you rich quickly, and it was never meant to. What it does is rarer: a government-backed, completely tax-free return, compounded patiently over 15 years, with no market risk. Run your numbers, deposit before April 5, and let the fifteenth year surprise you.
Frequently asked questions about PPF
What is the current PPF interest rate?
7.1% per annum, compounded yearly (October–December 2026 quarter). The government revises the rate every quarter, so check the latest notification before investing.
What is the minimum and maximum I can deposit in PPF?
Minimum ₹500 per financial year to keep the account active, maximum ₹1.5 lakh per financial year. Deposits can be made in one lump sum or in up to 12 instalments.
Can I withdraw PPF money before 15 years?
Full closure is not allowed before 15 years, but one partial withdrawal per year is permitted from the 7th financial year, and loans up to 25% of the balance are available from the 3rd year.
Is PPF really tax-free?
Yes. It has EEE status: the deposit qualifies for a tax deduction under the old regime, the yearly interest is tax-free, and the maturity amount is fully tax-free.
What happens when my PPF matures after 15 years?
You have three choices: withdraw the full amount tax-free, extend in 5-year blocks with or without fresh deposits, or leave the balance and withdraw any time.