PPF Calculator
Calculate maturity value of your Public Provident Fund
| Year | Opening Balance | Deposit | Interest | Closing Balance |
|---|
What is PPF (Public Provident Fund)?
The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India, introduced in 1968. It is one of the most popular tax-saving instruments in India, offering the unique EEE (Exempt-Exempt-Exempt) tax status — meaning your investment, the interest earned, and the maturity amount are all completely tax-free. PPF accounts can be opened at any post office or designated bank branches.
PPF Rules & Limits
| Rule | Details |
|---|---|
| Minimum Deposit | ₹500 per year |
| Maximum Deposit | ₹1,50,000 per year (across all PPF accounts) |
| Lock-in Period | 15 years (extendable in 5-year blocks) |
| Current Interest Rate | 7.1% p.a. (compounded annually, set by Govt quarterly) |
| Tax on Investment | Deductible under Sec 80C up to ₹1.5L (old regime) |
| Tax on Interest & Maturity | 100% Tax-Free (EEE status) |
| Partial Withdrawal | Allowed from Year 7 onwards (up to 50% of balance at end of 4th year) |
| Loan Facility | Available from Year 3 to Year 6 (up to 25% of balance) |
PPF Interest Calculation
PPF interest is calculated on the lowest balance between the 5th and last day of each month. This means you should deposit before the 5th of April each year to earn interest for the entire year. Depositing after the 5th of any month means you lose that month's interest on the deposited amount.
Effective formula: Balance(n) = (Balance(n-1) + Annual Deposit) × (1 + r)
PPF Maturity Example
| Annual Deposit | ₹1,50,000 |
| Interest Rate | 7.1% p.a. |
| Tenure | 15 years |
| Total Amount Invested | ₹22,50,000 |
| Total Interest Earned | ₹18,18,209 |
| Tax-Free Maturity Amount | ₹40,68,209 |
| Effective Tax Saving (30% slab) | ₹45,000/year |
PPF vs ELSS — Which is Better for Tax Saving?
| Feature | PPF | ELSS |
|---|---|---|
| Returns | 7.1% (government-guaranteed) | 12–18% (equity, market-linked) |
| Risk | Zero | High short-term; lower over 10+ years |
| Lock-in | 15 years | 3 years (shortest 80C option) |
| Tax on maturity | Completely tax-free (EEE) | LTCG 12.5% above ₹1.25L/year |
| Best for | Risk-averse, retirement planning | 10+ year horizon, wealth creation |
Smart strategy: Invest ₹75,000/year in PPF (safe, EEE) + ₹75,000/year in ELSS to fully use the ₹1.5L Section 80C limit with balanced risk.
How to Open a PPF Account in India
- Log in to your bank's net banking (SBI, HDFC, ICICI, Axis, PNB) or visit any Post Office
- Navigate to "Open PPF Account" under Deposits or Investments
- Enter PAN, nominee details, and make the first deposit (minimum ₹500)
- Account activated within 1–2 working days
Important: Only one PPF account per person across all banks and post offices. A second account earns no interest and must be closed.
PPF Withdrawal, Loan and Premature Closure Rules
Partial withdrawal: Allowed from the 7th financial year — up to 50% of the balance at end of the 4th preceding year, once per financial year.
Loan against PPF: Available from Year 3 to Year 6 — up to 25% of balance at end of 2nd preceding year, at PPF rate + 1%.
Premature closure: Allowed after 5 complete years only for: life-threatening illness, higher education, or change to NRI status. A 1% interest penalty applies.