Public Provident Fund (PPF) Calculator
Project your tax-free Public Provident Fund savings, interest earnings, and maturity corpus over the mandatory 15-year tenure.
PPF Wealth Summary
PPF provides safe, government-backed tax-free growth. Check your 15-year projections:
Total Contributions
Your cumulative PPF deposits (subject to the annual limit of ₹1.5 Lakhs).
Tax-Free Interest
The compound interest earned, which is entirely tax-exempt.
Maturity Corpus
The total value withdrawable at the end of the 15-year lock-in period.
How is it calculated?
F = \frac{P \times [((1 + r)^n - 1)]}{r}Where F is PPF maturity amount, P is annual contribution, r is interest rate (determined by government), and n is number of years (15).
Worked Examples
₹1.5 Lakh Annual Contribution for 15 Years
Contributing the maximum limit of ₹150,000 per year at 7.1% interest for 15 years results in a maturity amount of ₹40.68 Lakhs, with ₹18.18 Lakhs earned as tax-free interest.
₹50,000 Yearly Investment
Investing ₹50,000 annually for 15 years at 7.1% yields a maturity corpus of ₹13.56 Lakhs.
Understanding the Public Provident Fund (PPF) Scheme
What is the Public Provident Fund (PPF)?
The Public Provident Fund (PPF) is a popular long-term savings-cum-tax-saving scheme backed by the Government of India. Introduced in 1968, it aims to mobilize small savings by offering secure investment returns coupled with tax benefits. PPF accounts have a mandatory lock-in period of 15 years, making them ideal for long-term goals like retirement and children’s education.
Since PPF is a government-guaranteed scheme, the capital is 100% secure. The interest rate is reviewed and set by the Ministry of Finance every quarter.
Using the PPF Calculator for 15-Year Planning
Because PPF has a 15-year tenure, estimating the compound interest manually can be complicated. Our calculator simplifies this process. Input your annual investment amount (which can range from ₹500 to ₹1,50,000 per fiscal year) and the current interest rate.
The tool will output the year-on-year growth of your balance, showing the total contributions made and interest accumulated at the end of the 15-year period. You can also simulate extensions in blocks of 5 years.
PPF Interest Calculation and the 5th Day Rule
PPF interest is compounded annually, but calculated monthly. The formula for PPF growth is:
F = P * [((1 + r)^n - 1) / r]
Where F is the maturity corpus, P is the annual contribution, r is the rate of interest, and n is the tenure in years.
Important Rule: PPF interest is calculated on the lowest balance in the account between the close of the 5th day and the last day of every month. Therefore, to maximize your interest earnings, you should deposit your PPF contribution on or before the 5th of the month (or make a lumpsum deposit between April 1st and April 5th at the start of the financial year).
The EEE Tax Benefit: Why PPF is Unmatched
PPF falls under the highly coveted Exempt-Exempt-Exempt (EEE) tax category in India. This means:
1. The amount invested (up to ₹1.5 Lakhs/year) is exempt from income tax under Section 80C.
2. The interest earned annually is entirely tax-free, unlike bank FD interest.
3. The final maturity amount withdrawn after 15 years is completely tax-exempt. This makes PPF one of the most tax-efficient wealth accumulation tools available.
Frequently Asked Questions
Can I withdraw money from my PPF account before 15 years?
What happens if I fail to make a contribution in a year?
Can I extend my PPF account after 15 years?
Results are estimates and should not be considered financial advice.