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Ppf (Public Provident Fund) Calculator

Calculate your PPF maturity amount, total interest earned, and corpus based on annual deposit, current 7.1% interest rate, and investment tenure.

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Inputs

Annual Deposit

Interest Rate

Investment Tenure

Maturity Amount

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Maturity Amount—

The formula

How the
result is
computed.

What Is a PPF Calculator?

A PPF calculator (Public Provident Fund calculator) is a financial planning tool that computes the maturity value of a PPF account based on the annual deposit amount, the prevailing government-set interest rate, and the chosen investment tenure. It enables investors to project long-term, tax-free wealth creation under one of India's most trusted government-backed savings schemes.

The PPF Maturity Formula

The maturity amount of a PPF account is derived using the future value of an annuity due formula. PPF deposits made at the beginning of each financial year earn interest for the full year, making this the correct model:

M = P × [(1 + r)ⁿ − 1] / r × (1 + r)

M — Maturity amount (total corpus at the end of the tenure)
P — Annual deposit (minimum ₹500, maximum ₹1,50,000 per financial year)
r — Annual interest rate expressed as a decimal (e.g., 7.1% = 0.071)
n — Investment tenure in years (minimum 15 years)

How the Formula Is Derived

PPF interest is computed on the lowest account balance between the 5th and the last day of each month, then credited to the account on March 31 of each financial year. Deposits made before the 5th of April earn interest for the entire year. The annuity-due structure reflects this front-loaded compounding. The additional (1 + r) multiplier at the end of the formula accounts for the one extra compounding period gained when each deposit is made at the beginning rather than the end of the period.

Step-by-Step Calculation Example

Consider an investor who deposits the maximum permissible amount of ₹1,50,000 each year for the mandatory lock-in period of 15 years at the current government rate of 7.1% per annum:

P = ₹1,50,000
r = 0.071
n = 15
M = 1,50,000 × [(1.071)¹⁵ − 1] / 0.071 × 1.071
(1.071)¹⁵ ≈ 2.7985
M ≈ ₹40,68,209

Total principal invested: ₹22,50,000 (₹1,50,000 × 15 years). Total interest earned: approximately ₹18,18,209 — representing over 44% of the final corpus. This demonstrates how annual compounding over a 15-year horizon substantially multiplies the original investment.

Key Variables Explained

Annual Deposit (P)

According to the National Savings Institute, Ministry of Finance, the minimum annual PPF contribution is ₹500 and the maximum is ₹1,50,000 per financial year. Deposits may be made in a single lump sum or in up to 12 installments. Failure to deposit the minimum amount in any year causes the account to become inactive; revival requires a penalty of ₹50 per defaulted year plus the minimum deposit for each missed year.

Interest Rate (r)

The Government of India sets the PPF interest rate on a quarterly basis. The current rate is 7.1% per annum, compounded annually. Because this rate is backed by a sovereign guarantee, PPF is classified as a virtually risk-free instrument. Investors should verify the latest notified rate before running projections.

Investment Tenure (n)

As confirmed by India Post (Government of India), the PPF account carries a mandatory lock-in of 15 years. After maturity, the account can be extended indefinitely in blocks of 5 years — either with or without fresh contributions. Extending with contributions allows compounding to operate on a much larger base, significantly amplifying terminal wealth over a 20- or 25-year horizon.

Tax Benefits and EEE Status

PPF carries Exempt-Exempt-Exempt (EEE) tax status under the Income Tax Act, 1961. Annual contributions up to ₹1,50,000 qualify for deduction under Section 80C. Interest accrued each year is fully exempt from income tax, and the maturity proceeds are received tax-free. This triple exemption makes the effective post-tax yield of PPF considerably higher than comparable fixed-income products such as bank fixed deposits or National Savings Certificates that are subject to TDS or taxation on interest.

When to Use This PPF Calculator

Projecting a retirement corpus over 15, 20, or 25 years
Comparing the impact of depositing ₹500 vs. ₹1,50,000 annually on terminal wealth
Benchmarking PPF returns against other Section 80C instruments like ELSS or FDs
Determining the annual savings required to achieve a specific financial milestone

Reference

Frequently asked questions

What is the current PPF interest rate in 2025?

The current PPF interest rate is 7.1% per annum, compounded annually. This rate is reviewed and notified quarterly by the Government of India. It has remained at 7.1% since April 2020. Because the rate is backed by a sovereign guarantee, PPF is considered a risk-free investment, making it one of the safest fixed-income options for long-term savers in India.

How is PPF interest calculated each year?

PPF interest is computed on the lowest account balance between the 5th and the last day of each calendar month. The interest for all months is then summed and credited to the account on March 31 each year. To earn the maximum interest, investors should deposit before the 5th of April, ensuring the full annual deposit earns interest for the entire financial year. The maturity formula M = P × [(1+r)^n − 1] / r × (1+r) consolidates these annual compounding cycles into a single projection.

What is the minimum and maximum deposit allowed in a PPF account?

As per the Public Provident Fund Scheme rules notified by the National Savings Institute under the Ministry of Finance, the minimum annual contribution is ₹500 and the maximum is ₹1,50,000 per financial year. Contributions can be made as one lump sum or in up to 12 installments during the year. If the minimum ₹500 is not deposited in a given year, the account becomes inactive and requires a penalty payment of ₹50 per defaulted year to reactivate, along with the outstanding minimum deposit.

Can I extend my PPF account after the 15-year lock-in period ends?

Yes. Once the mandatory 15-year lock-in expires, a PPF account holder can extend the account in blocks of 5 years any number of times. Extensions are available either with or without fresh contributions. When extended with contributions, the investor continues to receive the Section 80C deduction on new deposits and earns tax-free interest. When extended without contributions, the existing corpus continues to earn interest at the prevailing government rate, and the accumulated balance remains fully tax-exempt.

What are the tax benefits of investing in a PPF account?

PPF offers a triple tax exemption classified as EEE — Exempt-Exempt-Exempt. First, annual contributions up to ₹1,50,000 are deductible under Section 80C of the Income Tax Act, 1961, reducing taxable income. Second, the interest credited each year is fully exempt from income tax, unlike interest on bank fixed deposits. Third, the total maturity amount received at the end of the tenure is entirely tax-free. For a taxpayer in the 30% bracket, these combined exemptions substantially improve the effective post-tax yield compared to most other fixed-income instruments.

How much will a PPF account be worth if ₹1.5 lakh is deposited every year for 15 years?

Depositing the maximum ₹1,50,000 annually for 15 years at the current rate of 7.1% per annum produces an approximate maturity value of ₹40,68,209. The total principal invested is ₹22,50,000, and the interest earned is approximately ₹18,18,209 — more than 44% of the final corpus. Extending the account for an additional 5 years to a 20-year tenure at the same rate increases the maturity value significantly further, as compounding acts on the enlarged base accumulated over the first 15 years.