PPF Calculator

The Public Provident Fund (PPF) is one of India's most popular sovereign-backed savings schemes. Established under the Public Provident Fund Act 1968, it offers complete capital safety, guaranteed quarterly government-notified interest rates, and the coveted Exempt-Exempt-Exempt (EEE) tax status under the old tax regime.

The FinToolkit PPF Calculator computes your year-by-year balance growth, total interest earned, and final maturity corpus over the mandatory 15-year statutory tenure and subsequent 5-year extension blocks.

Key statutory rules of the Public Provident Fund

1. Contribution limits: Minimum deposit of ₹500 and maximum deposit of ₹1,50,000 per financial year across all accounts held by an individual (including accounts opened on behalf of minor children).
2. 15-year tenure: The account matures at the end of 15 full financial years from the year of account opening.
3. 5th of the month interest rule: Interest is calculated monthly on the lowest balance between the close of the 5th day and the end of the month. To maximize annual interest, always deposit your contributions on or before the 5th of each month (or before 5 April for annual lump sums).
4. Account extensions: After 15 years, accounts can be extended in 5-year blocks indefinitely, either with continued contributions or without fresh contributions.

Worked PPF growth scenario (15-year statutory period)

Consider an investor who deposits the maximum annual limit of ₹1,50,000 on or before 5 April every year for the full 15-year tenure, at the current notified interest rate of 7.10% per annum.

Over 15 years, depositing ₹1,50,000 annually accumulates ₹22,50,000 of principal and generates ₹18,18,209 in tax-free interest, delivering a maturity corpus of ₹40,68,209. Because of the EEE tax status, every single rupee of this maturity corpus is 100% exempt from income tax.

The EEE tax advantage

• Exempt at investment: Contributions qualify for deduction under Section 80C up to ₹1,50,000 per year (under the Old Tax Regime).
• Exempt during accumulation: The interest credited to the account each year is completely tax-free and does not need to be reported as taxable income.
• Exempt at withdrawal: The entire maturity corpus withdrawn after 15 years carries zero capital gains tax or income tax under both the Old and New Tax Regimes.

Frequently asked questions

Can I open more than one PPF account?

No. An individual can hold only one PPF account in their own name. You may open an account on behalf of a minor child as guardian, but the combined annual deposit across your account and the minor's account cannot exceed ₹1,50,000.

Can I withdraw money before 15 years?

Partial withdrawals are permitted from the 7th financial year onward (up to 50% of the balance at the end of the 4th preceding year or preceding year, whichever is lower). Premature closure is allowed only after 5 years for serious medical treatment or higher education of dependent children, subject to a 1% interest penalty.

What happens if I forget to deposit the minimum ₹500 in a year?

The account becomes inactive or discontinued. You can regularize a discontinued account by paying a default penalty fee of ₹50 along with the minimum deposit of ₹500 for each lapsed year at your bank or post office.

Does PPF remain beneficial under the New Tax Regime?

Yes. Although Section 80C deductions are not available under the new tax regime, the interest earned and final maturity proceeds remain 100% tax-free under Section 10(11), making PPF an exceptional sovereign-guaranteed debt asset for all taxpayers.

Related retirement & savings calculators

• EPF Calculator — project your Employee Provident Fund retirement balance.
• Sukanya Samriddhi Yojana (SSY) Calculator — evaluate government EEE savings designed for girl children.
• NPS Calculator — compare PPF with market-linked pension investments under Section 80CCD.
• SIP Calculator — compare PPF debt accumulation against equity mutual fund returns.