How a PPF account works
Public Provident Fund is a long-term savings scheme of the Government of India with a 15-year lock-in and tax-free returns. You can deposit between ₹500 and ₹1,50,000 per financial year, in up to 12 instalments. Interest is set quarterly by the government, calculated on the lowest balance between the 5th and the last day of every month, and credited annually on March 31.
PPF qualifies as an EEE instrument: contributions get a Section 80C deduction up to ₹1.5 lakh, interest is tax-free, and the maturity amount is tax-free.
Formula
- M = Maturity amount
- P = Annual contribution
- r = Annual rate of interest (e.g. 0.071 for 7.1%)
- n = Number of years (typically 15)
This formula assumes you contribute the same amount every year. The calculator above lets you simulate variable contributions and partial withdrawals.
Why use the PPF calculator
See real maturity
Plug in any interest rate and any contribution to see exactly what you will get at year 15.
Compare regimes
PPF is most attractive for old-regime taxpayers using 80C — quickly compare with new regime alternatives.
Plan extensions
Model 5-year extensions with or without contribution to see the impact on maturity.
Frequently asked questions
What is the current PPF interest rate?
The PPF interest rate is set by the Government of India and reviewed every quarter. As of recent quarters it has hovered around 7.1% per annum, compounded annually. Always check the current quarter's notification before relying on a specific rate.
What is the maximum I can invest in PPF in a year?
The minimum is ₹500 and the maximum is ₹1,50,000 per financial year (across all PPF accounts in your name and your minor children's, combined). Deposits above ₹1.5 lakh do not earn interest.
How long is a PPF account locked in?
PPF has a 15-year lock-in from the end of the financial year of the first deposit. After 15 years, you can extend the account in blocks of 5 years, with or without contribution. Partial withdrawals are allowed from the 7th year, and loans against PPF from the 3rd to 6th year, subject to limits.
Is PPF interest taxable?
No. PPF falls under the EEE (Exempt-Exempt-Exempt) category — contributions are deductible under Section 80C (up to ₹1.5 lakh), interest earned is tax-free, and the maturity amount is also tax-free.
Can NRIs open a PPF account?
NRIs cannot open a new PPF account. However, if you opened a PPF account when you were a resident, you can continue contributing until maturity, but you cannot extend the account beyond 15 years.