PPF Calculator
Calculate your PPF (Public Provident Fund) maturity amount with our free online PPF Calculator. Plan your 15-year tax-saving investment with annual deposits and see how your money grows with tax-free compound interest. Perfect for Section 80C tax benefits in India.
Calculate PPF Maturity Amount
PPF Calculation Results
How PPF (Public Provident Fund) Works
PPF (Public Provident Fund) is a 15-year tax-saving investment scheme backed by the Government of India. It offers tax-free returns and qualifies for Section 80C deduction up to ₹1.5 lakh per year. PPF is one of the safest long-term investment options with guaranteed returns and tax benefits.
PPF Maturity Formula
Maturity Amount = P × [(1 + r)n - 1] / r
- P: Annual deposit amount
- r: Interest rate per annum (in decimal form)
- n: Number of years
Note: Interest is compounded annually and credited at the end of each financial year.
Key Features of PPF
- Tax Benefits: Contributions up to ₹1.5 lakh/year qualify for Section 80C deduction. Interest and maturity are tax-free.
- Tenure: Minimum 15 years, can be extended in blocks of 5 years indefinitely.
- Deposit Limits: Minimum ₹500/year, Maximum ₹1.5 lakh/year. You can deposit in installments (max 12 per year).
- Interest Rate: Set by the government quarterly. Currently around 7.1% (subject to change).
- Safety: Backed by the Government of India, making it one of the safest investment options.
Why PPF is Popular in India
PPF combines safety, tax savings, and guaranteed returns — making it ideal for risk-averse investors planning for retirement, children's education, or long-term goals. The tax-free maturity amount and Section 80C benefits make it a powerful wealth-building tool over 15+ years.
PPF Calculation Example
Example: Calculate PPF maturity for ₹1.5 lakh annual deposit at 7.1% for 15 years:
- Annual Deposit: ₹1,50,000
- Interest Rate: 7.1% per annum
- Tenure: 15 years
Using the formula: Maturity = 1,50,000 × [(1.071)15 - 1] / 0.071
Result: Approximately ₹40,68,209 at maturity
Breakdown
- Total Investment: ₹22,50,000 (₹1.5L × 15 years)
- Interest Earned: ₹18,18,209
- Maturity Amount: ₹40,68,209
Your ₹22.5 lakh investment grows to ₹40.68 lakh — that's ₹18.18 lakh in tax-free interest over 15 years!
Quick Answers
What is PPF?
PPF (Public Provident Fund) is a government-backed savings scheme with a 15-year tenure (extendable in blocks of 5 years). It offers tax-free interest and EEE status.
What is the PPF interest rate?
The government sets the PPF rate quarterly. It is typically in line with prevailing rates and is tax-free. Check the latest notification for the current rate.
Is PPF interest taxable?
No. PPF interest and maturity are tax-free under the Income Tax Act. Contributions also qualify for deduction under Section 80C.
Can I withdraw from PPF before 15 years?
Partial withdrawals are allowed from the 7th financial year onwards, subject to limits. Loan against PPF is allowed from the 3rd to 6th year.
What is the maximum PPF deposit per year?
You can deposit between ₹500 and ₹1.5 lakh in a financial year. Deposits can be made in lump sum or in instalments (up to 12 per year).
Frequently Asked Questions
Is PPF interest taxable?
No. PPF interest is completely tax-free under Section 10(11) of the Income Tax Act. The entire maturity amount (principal + interest) is tax-free, making PPF one of the best tax-saving instruments in India.
Can I withdraw money from PPF before 15 years?
Partial withdrawals are allowed from the 7th financial year onwards, up to 50% of the balance at the end of the 4th year or the preceding year, whichever is lower. However, early withdrawals reduce your compounding benefits, so it's best to avoid them unless absolutely necessary.
What happens after 15 years in PPF?
After 15 years, you can either withdraw the entire amount or extend the account in blocks of 5 years indefinitely. If you extend, you can continue making deposits and earning tax-free interest. Many investors extend PPF to maximize long-term wealth building.
Can I take a loan against PPF?
Yes. You can take a loan against PPF from the 3rd to 6th financial year. The loan amount can be up to 25% of the balance at the end of the 2nd year. Interest is charged on the loan, and it must be repaid within 36 months. After the 6th year, loan facility is not available.
What is the current PPF interest rate?
The PPF interest rate is reviewed and announced quarterly by the government. As of recent updates, it's around 7.1% per annum (subject to change). The rate is generally linked to government bond yields and may vary each quarter. Check the latest rate on the official PPF portal or your bank's website.
How many times can I deposit in PPF per year?
You can deposit in PPF up to 12 times per financial year (April to March). There's no minimum limit per deposit, but the total annual deposit must be between ₹500 and ₹1.5 lakh. You can deposit the entire ₹1.5 lakh in one go or spread it across multiple installments.
Is PPF better than FD for tax savings?
PPF has several advantages over FD: (1) Tax-free interest (FD interest is taxable), (2) Section 80C deduction on deposits, (3) Longer lock-in (15 years vs FD's flexible tenure), and (4) Government backing. However, FD offers more liquidity. For long-term tax-saving goals, PPF is generally better. For short-term needs, FD may be more suitable.