PPF Calculator
Project your Public Provident Fund maturity — yearly deposit, interest rate and tenure in, year-wise balance and tax-free maturity value out.
Year-wise PPF balance
| Year | Deposited | Balance at year end |
|---|---|---|
| 1 | ₹1,50,000 | ₹1,60,650 |
| 2 | ₹3,00,000 | ₹3,32,706 |
| 3 | ₹4,50,000 | ₹5,16,978 |
| 4 | ₹6,00,000 | ₹7,14,334 |
| 5 | ₹7,50,000 | ₹9,25,701 |
| 6 | ₹9,00,000 | ₹11,52,076 |
| 7 | ₹10,50,000 | ₹13,94,524 |
| 8 | ₹12,00,000 | ₹16,54,185 |
| 9 | ₹13,50,000 | ₹19,32,282 |
| 10 | ₹15,00,000 | ₹22,30,124 |
| 11 | ₹16,50,000 | ₹25,49,113 |
| 12 | ₹18,00,000 | ₹28,90,750 |
| 13 | ₹19,50,000 | ₹32,56,643 |
| 14 | ₹21,00,000 | ₹36,48,515 |
| 15 | ₹22,50,000 | ₹40,68,209 |
What is the Public Provident Fund (PPF)?
The Public Provident Fund (PPF) is India's flagship sovereign-backed long-term savings instrument, established under the Public Provident Fund Act, 1968 and managed under the Government Savings Promotion Act. Guaranteed by the Central Government of India, PPF offers 100% principal safety, guaranteed interest compounding, and complete immunity from market volatility.
PPF has a statutory maturity tenure of 15 financial years. Savers can invest between ₹500 and ₹1,50,000 per financial year in lump sums or flexible monthly instalments. The interest rate is reviewed and notified quarterly by the Ministry of Finance — currently standing at 7.1% per annum, compounded annually on March 31st.
Key Rules: Deposit Limits, Tenure & The Critical 5th-of-the-Month Rule
To maximize compounding returns from your PPF account, every investor should adhere to three essential operational guidelines:
- Deposit Limits: The minimum annual deposit is ₹500 to keep the account active (a ₹50 penalty plus ₹500 arrear deposit revives a discontinued account). The statutory maximum is ₹1,50,000 across all accounts opened in your name (including accounts opened as a guardian for a minor child).
- The 5th of the Month Rule: Interest is calculated monthly on the lowest balance between the close of the 5th day and the end of the calendar month. Deposits credited on or after the 6th do not earn interest for that month! For maximum compounding, deposit on or before 5th April each financial year.
- Extension in 5-Year Blocks: After 15 years, the account can be extended indefinitely in 5-year blocks. You can extend with fresh contributions (submit Form H within 1 year of maturity) or without fresh contributions, where the corpus continues earning tax-free interest with complete annual liquidity.
The PPF Maturity & Compounding Formula
M = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i)
- M — Total maturity corpus at tenure completion.
- P — Annual deposit amount (assumed deposited before April 5th under annuity-due convention).
- i — Annual interest rate as a decimal (7.1% → 0.071).
- n — Completed duration in financial years (15, 20, 25, 30+).
The trailing × (1 + i) represents annuity-due compounding, where investments deposited at the beginning of the period earn a full year's compound interest.
A Worked Example: Compounding Power Over 15, 20 & 25 Years
Case Study: Depositing ₹1,50,000 every year on April 1st at the statutory 7.1%:
- At 15 Years: Invested: ₹22,50,000 | Interest: ₹18,18,209 | Maturity: ₹40,68,209 (~₹40.68 Lakh). Tax-free interest accounts for 44.7% of your total balance.
- At 20 Years (1 Extension): Invested: ₹30,00,000 | Interest: ₹36,58,288 | Maturity: ₹66,58,288 (~₹66.58 Lakh). Accumulated interest exceeds total deposits!
- At 25 Years (2 Extensions): Invested: ₹37,50,000 | Interest: ₹65,58,015 | Maturity: ₹1,03,08,015 (~₹1.03 Crore). Disciplined ₹1.5L annual deposits turn into a tax-free crore.
PPF Maturity Projections Across Contribution Levels at 7.1%
| Annual Deposit | Invested (15 Yrs) | Maturity (15 Yrs) | Maturity (20 Yrs) | Maturity (25 Yrs) |
|---|---|---|---|---|
| ₹12,000 (₹1,000/mo) | ₹1,80,000 | ₹3,25,457 | ₹5,32,663 | ₹8,24,641 |
| ₹30,000 (₹2,500/mo) | ₹4,50,000 | ₹8,13,642 | ₹13,31,658 | ₹20,61,603 |
| ₹60,000 (₹5,000/mo) | ₹9,00,000 | ₹16,27,284 | ₹26,63,315 | ₹41,23,206 |
| ₹1,00,000 | ₹15,00,000 | ₹27,12,139 | ₹44,38,859 | ₹68,72,010 |
| ₹1,50,000 (Maximum) | ₹22,50,000 | ₹40,68,209 | ₹66,58,288 | ₹1,03,08,015 |
Calculated using annuity-due annual compounding at 7.1% per annum. Small savings rates are subject to quarterly review by the Government of India.
Emergency Liquidity: Loan & Partial Withdrawal Rules
Although PPF is a 15-year commitment, the scheme provides structured windows for emergency liquidity:
- Loan Against PPF (Years 3 to 6): Available between the 3rd and 6th financial year. You can borrow up to 25% of the balance standing at the end of the second preceding financial year. Interest is 1% above the prevailing PPF rate if repaid within 36 months.
- Partial Withdrawals (From Year 7): Permitted once every financial year starting from the 7th year. You can withdraw up to 50% of the balance at the end of the 4th preceding year or 50% of the preceding year's balance, whichever is lower. All withdrawals are 100% tax-free.
- Premature Closure (After 5 Years): Allowed only for critical illness treatment of self/family, higher education of children, or change in NRI residency status, subject to a 1% interest penalty across the entire tenure.
Tax Implications: Supreme EEE Status & Court Protection
PPF enjoys India's most comprehensive Exempt-Exempt-Exempt (EEE) tax status under the Income Tax Act, 1961:
- Investment: Eligible for deduction under Section 80C up to ₹1,50,000/year under the Old Tax Regime.
- Accrual: Annual interest is completely exempt from income tax under Section 10(11) with zero TDS and zero tax under both Old and New Tax Regimes.
- Maturity: The entire lump sum is 100% tax-free upon withdrawal.
- Court Attachment Protection: Under Section 14A of the Government Savings Promotion Act, PPF balances cannot be attached by any court decree or creditor order for private debt liabilities.
PPF questions, answered
Comprehensive answers on interest rates, tax benefits, 5th of month rule, extensions, and account operations.
The PPF interest rate is currently 7.1% per annum, compounded annually on March 31st. The Ministry of Finance reviews and notifies rates quarterly. The declared rate applies automatically to all existing and new PPF accounts.
Interest is calculated on the lowest balance between the close of the 5th and the month end. If you deposit after the 5th, that deposit earns zero interest for the month. Always deposit on or before the 5th of each month, or deposit your yearly sum before April 5th for full-year compounding.
Yes. PPF interest and maturity proceeds are 100% tax-free under Section 10(11) under BOTH the Old and New Tax Regimes. The only distinction is that the Section 80C deposit deduction is available only under the Old Regime.
Yes, a parent or legal guardian can open an account for a minor. However, the combined annual deposit across your own account and your minor child's account cannot exceed the statutory limit of ₹1,50,000 per financial year. Any excess deposit earns zero interest and is refunded.
Non-Resident Indians (NRIs) cannot open a fresh PPF account. If a resident Indian opens a PPF account and subsequently becomes an NRI, they can maintain the existing account until the 15-year maturity on a non-repatriable basis, but cannot extend it further.
Upon completing 15 years, you can: (1) withdraw the full corpus tax-free; (2) extend in 5-year blocks with contributions by submitting Form H within 1 year of maturity; or (3) extend without contributions, where the balance continues earning interest with the freedom to make one withdrawal per year.
You can take a loan from the 3rd to the 6th financial year. The loan is capped at 25% of the balance standing at the end of the second financial year immediately preceding the application year. Interest is 1% per annum above the PPF rate if repaid within 36 months.
Partial withdrawals are permitted once every financial year starting from the 7th financial year. You can withdraw up to 50% of the balance at the end of the 4th preceding year or 50% of the preceding year's balance, whichever is lower. Withdrawals are 100% tax-free.
The account becomes discontinued. Discontinued accounts continue to earn interest, but loan and withdrawal facilities are frozen. You can revive the account anytime before maturity by paying a penalty fee of ₹50 plus the minimum arrear deposit of ₹500 for each defaulted year.
No. PPF accounts can only be held in a single name. Joint accounts are strictly prohibited under the scheme rules. Furthermore, an individual cannot hold more than one PPF account in their own name anywhere in India.
Under Section 14A of the Government Savings Promotion Act, the credit balance in a PPF account cannot be attached by any court decree or order in respect of any debt or liability. However, the Income Tax Department retains statutory powers to attach accounts for tax arrears.