The Public Provident Fund is one of India’s most trusted savings schemes, run by the government with a fixed tenure of fifteen years. You can deposit anything between five hundred rupees and one point five lakh rupees in a financial year, and the interest rate — currently around seven point one percent — is revised every quarter. What makes PPF special is its triple tax benefit: deposits, interest, and the maturity amount are all tax-free, so the figure you see at the end is the figure you actually keep.
PPF suits conservative savers who want certainty rather than market-linked growth — people building a retirement reserve, a long-term safety cushion, or a child’s future fund. The fifteen-year lock-in sounds long, but it enforces exactly the patience that compounding needs. After maturity, the account can be extended in five-year blocks, so the money can keep growing tax-free if you do not need it yet.
This calculator projects your PPF maturity from your yearly deposit and the interest rate you enter, showing total deposits, total interest earned, and the final corpus. Try the maximum yearly deposit to see what full utilisation looks like, or enter a smaller figure you can genuinely sustain. Because the rate changes quarterly, treat long projections as estimates and re-check with the current rate during your yearly review.
How it works
The calculator assumes you deposit the yearly amount you enter at the start of each financial year, then compounds it annually at the interest rate you chose for the full fifteen years. The earliest deposits earn interest for the longest time, which is why the interest earned in the final years dwarfs the interest from the first few — compounding accelerates as the balance grows, rewarding patience.
In reality, PPF interest is calculated on the lowest balance between the fifth and the last day of each month, so depositing before the fifth earns interest for that month. The calculator uses a simpler yearly model, which keeps the estimate close enough for planning. It also assumes the rate stays constant even though the government revises it every quarter — running the numbers with a slightly lower rate gives you a cautious, realistic scenario. Depositing early in the financial year gives each year’s contribution the maximum time to grow.
How to use this tool
- Enter your planned yearly deposit, between five hundred rupees and one point five lakh.
- Enter the current PPF interest rate per annum.
- Keep the tenure at fifteen years, the standard PPF term.
- Click Calculate to see the maturity value and interest earned.
- Review the deposit versus interest breakup.
- Re-run with a slightly lower rate for a cautious estimate.
Practical tips
- Deposit before the fifth of April to earn interest on the full amount for the entire financial year — a lump sum early in the year beats the same money trickling in month by month.
- Never deposit more than one point five lakh rupees in a year: the excess earns no interest and gets no tax deduction, so direct the surplus to another investment.
- If you skip the minimum yearly deposit, the account goes inactive and needs a penalty plus the missed minimums to revive — set a yearly reminder instead.
- After fifteen years, extending in five-year blocks keeps the tax-free compounding alive; withdrawing the whole sum just because it matured is often a missed opportunity.
Frequently asked questions
Is PPF interest really tax-free?
Yes. PPF enjoys EEE status in India: your deposits qualify for deduction under Section 80C, the interest earned each year is completely tax-free, and the maturity amount is fully exempt as well. This triple benefit is why conservative investors often prefer PPF over fixed deposits, where the interest is taxed every year and eats into real returns.
Can I withdraw from PPF before 15 years?
Partial withdrawals are allowed from the seventh financial year, limited to fifty percent of the balance at the end of the fourth preceding year. Full premature closure is permitted only in specific situations such as serious illness or a child's higher education, and it carries a one percent interest penalty. Because the rules are strict, treat PPF as money you will not touch for the full term.
What happens to the PPF interest rate over time?
The government revises the PPF interest rate every quarter, so it can rise or fall during your fifteen-year tenure — it currently sits around seven point one percent. This calculator applies the rate you enter to the whole projection. For a cautious estimate, run it again with a slightly lower rate so your plan still works if rates drift downward.
Is it better to deposit monthly or as a lump sum?
PPF interest is calculated on the lowest balance between the fifth and the last day of each month, so money deposited before the fifth earns interest for that month. A lump sum in early April generally earns slightly more than the same amount spread across the year. That said, a regular monthly habit you actually maintain beats a perfect lump-sum plan you never execute.
Can I extend my PPF account after 15 years?
Yes. After maturity you can extend the account in blocks of five years, with or without fresh deposits, and the tax-free interest keeps compounding. Many investors extend because few other options offer risk-free, tax-free returns. You simply submit an extension form at your bank or post office within a year of maturity to keep the account alive.
What happens if I miss a year's deposit?
The account becomes inactive if you skip the minimum yearly deposit of five hundred rupees. You can revive it by paying a fifty-rupee penalty per missed year plus the minimum deposit for each of those years. Interest keeps accruing on the existing balance meanwhile, but it is simpler to set a yearly reminder than to deal with revival paperwork.
Note: Estimates for planning only — the PPF interest rate is revised quarterly and scheme rules can change, so verify current figures before acting. This is not financial advice.
