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Next toolsAssumptions and methodology
Transparent calculation notes for PPF Calculator.
Formula used
Annual PPF compounding
Closing balance = opening balance + deposit + interest
The calculator adds yearly deposits and credits interest to estimate maturity value.
Methodology
- Add the selected yearly investment.
- Credit the year's interest at the selected PPF rate on the opening balance, and on the deposit for the months it is in: all 12 if it is in by 5 April, 13/24 of a year for 12 monthly deposits by the 5th, none if it is paid after 5 March.
- Repeat for the selected time period.
- Work out the tax this year's deposit saves: old-regime tax with your other Section 123 investments, less the tax once the deposit is deducted too (₹0 in the new regime).
Core assumptions
- Deposits are made in full by 5 April each year (the best case) unless you pick another deposit timing.
- 15 yearly deposits are modelled. Because the 15 years run from the end of the year you open the account, a real account can usually take one extra deposit in its opening year.
- Interest rate is held constant even though real PPF rates can change quarterly.
- Deposits stay within applicable PPF limits.
Not included
- Partial withdrawals (including those during an extension), loans, and government rate changes are excluded.
- Extensions run in whole 5-year blocks, with or without contributions. "Keep depositing" assumes Form 4 is filed within a year of maturity.
- The tax card covers only this year's deposit under Section 123 (formerly 80C), which the old regime alone allows; check the tax-year rules before you file.
About PPF Calculator
Guide1What is PPF (Public Provident Fund)?
The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It offers a safe, guaranteed return with attractive tax benefits under the EEE (Exempt-Exempt-Exempt) category, making it one of the most popular tax-saving instruments in India.
PPF has a maturity period of 15 years, which can be extended in blocks of 5 years. It encourages long-term disciplined saving and is available through post offices and designated banks across India.
2Key Features of PPF
- Interest Rate: Set by the government quarterly and compounded annually (7.1% p.a. for 1 Oct–31 Dec 2026)
- Investment Limit: Minimum ₹500 and maximum ₹1,50,000 per financial year, in multiples of ₹50
- Lock-in Period: 15 years, with partial withdrawal allowed from the 7th year
- Tax Benefits: EEE: interest and maturity are tax-free in both regimes. The deposit is deductible under Section 123 (Section 80C before April 2026), up to ₹1.5 lakh shared with other eligible investments, only in the old regime.
- Loan Facility: Available from the 3rd to 6th financial year against the PPF balance
3PPF Interest Calculation
PPF interest is calculated on the lowest balance between the 5th and the end of each month:
Monthly Interest = Balance (lowest between 5th and month-end) × r / 12
This means deposits made before the 5th of each month earn interest for that month. Annual interest is credited on March 31st. For maximum returns, invest your yearly contribution before April 5th.
4How to Use This PPF Calculator
- Step 1: Enter your annual PPF contribution (up to ₹1,50,000)
- Step 2: Input the current PPF interest rate
- Step 3: Select the investment period (15 years or extended)
- Step 4: View year-by-year growth, total contributions, and maturity value
5PPF Withdrawal and Extension Rules
- Partial Withdrawal: Once a year from the 7th financial year: up to 50% of the lower of the balance at the end of the 4th preceding year or at the end of the preceding year.
- Extension: After 15 years, extend in 5-year blocks. With contributions, withdrawals are limited to 60% of the balance at the start of the block. Without contributions, the balance keeps earning interest and you can make one withdrawal a year. Apply in Form 4 within 1 year of maturity to keep depositing; otherwise the account continues without deposits.
- Premature Closure: Allowed only in specific cases like serious illness or higher education, after completing 5 years
- Nomination: You can nominate beneficiaries who will receive the balance in case of the account holder's demise
Frequently Asked Questions
FAQCan I have more than one PPF account?
No, an individual can hold only one PPF account. However, you can open a separate account for your minor child (with the combined annual limit of ₹1.5 lakh across both accounts).
What happens if I do not deposit the minimum in a year?
If you fail to deposit the minimum ₹500 in a financial year, the account becomes dormant. It can be revived by paying ₹500 per defaulted year plus a penalty of ₹50 per year.
Is PPF better than FD for tax saving?
PPF interest and maturity are tax-free, while FD interest is taxable, so PPF usually leaves more after tax. The deposit deduction (Section 123, formerly 80C) is available for PPF and for a 5-year tax-saving FD, but only in the old regime. PPF locks money for 15 years, against 5 for a tax-saving FD.
When should I deposit to maximize PPF interest?
Deposit your entire annual contribution before April 5th each year. PPF interest is calculated on the balance between the 5th and month-end, so depositing early maximizes the interest earned.
Can NRIs open a PPF account?
NRIs cannot open a new PPF account. However, if a resident who has a PPF account becomes an NRI, they can continue the account until maturity but cannot extend it beyond 15 years.