PPF Calculator India 2026 - Public Provident Fund Maturity, Interest Rate & Tax Benefits
TL;DR
PPF (Public Provident Fund) is India's safest long-term investment with sovereign guarantee, offering 7.1% interest (compounded annually) and complete tax exemption under EEE (Exempt-Exempt-Exempt) status. You can invest Rs 500 to Rs 1,50,000 per year with a 15-year maturity period, extendable in 5-year blocks. Investing the maximum Rs 1.5 lakh annually for 15 years at 7.1% yields approximately Rs 40.68 lakh - with Rs 22.5 lakh invested and Rs 18.18 lakh as tax-free interest. Key Facts:
- Current PPF interest rate: 7.1% per annum (Q1 FY 2026-27)
- Investment range: Rs 500 to Rs 1,50,000 per financial year
- Maturity: 15 years (extendable in 5-year blocks indefinitely)
- Tax status: EEE - contributions (80C), interest, and maturity all tax-free
- Deposit before 5th of each month to earn interest for that month
- Loan available from 3rd to 6th year; partial withdrawal from 7th year
PPF Interest Calculation
PPF interest is calculated on the minimum balance between the 5th and the last day of each month, at the annual rate, and credited at the end of the financial year (March 31).
Monthly Interest = Minimum balance (5th to end of month) x Annual Rate / 12
Annual Interest = Sum of 12 monthly interest calculations
Example: Depositing Rs 1,50,000 as Lumpsum on April 1
If you deposit the full Rs 1,50,000 on April 1st (before the 5th), you earn interest on the entire amount for all 12 months:
Annual interest = Rs 1,50,000 x 7.1% = Rs 10,650
If you deposit Rs 12,500 monthly (total Rs 1,50,000), some interest is lost as later deposits earn for fewer months.
| Deposit Strategy | Amount Deposited | Interest Earned (Year 1) |
|---|---|---|
| Lumpsum on April 1 | Rs 1,50,000 | Rs 10,650 |
| Monthly Rs 12,500 (before 5th) | Rs 1,50,000 | Rs 5,786 |
| Monthly Rs 12,500 (after 5th) | Rs 1,50,000 | Rs 5,194 |
---
PPF Maturity Projections
Here's how different annual contributions grow over the 15-year PPF tenure at 7.1%:
| Annual Contribution | Total Invested (15 years) | Maturity Amount | Interest Earned |
|---|---|---|---|
| Rs 500 (minimum) | Rs 7,500 | Rs 13,561 | Rs 6,061 |
| Rs 10,000 | Rs 1,50,000 | Rs 2,71,227 | Rs 1,21,227 |
| Rs 50,000 | Rs 7,50,000 | Rs 13,56,137 | Rs 6,06,137 |
| Rs 1,00,000 | Rs 15,00,000 | Rs 27,12,274 | Rs 12,12,274 |
| Rs 1,50,000 (maximum) | Rs 22,50,000 | Rs 40,68,209 | Rs 18,18,209 |
Extended PPF: 15 + 5 + 5 Years (25 Years Total)
If you extend your PPF and continue investing Rs 1,50,000 per year:
| Duration | Total Invested | Maturity Amount | Interest Earned |
|---|---|---|---|
| 15 years | Rs 22,50,000 | Rs 40,68,209 | Rs 18,18,209 |
| 20 years | Rs 30,00,000 | Rs 66,58,288 | Rs 36,58,288 |
| 25 years | Rs 37,50,000 | Rs 1,03,08,015 | Rs 65,58,015 |
---
PPF Tax Benefits (EEE Status)
PPF enjoys the coveted EEE (Exempt-Exempt-Exempt) tax treatment:
| Tax Stage | Treatment | Details |
|---|---|---|
| Contribution (E) | Section 80C deduction | Up to Rs 1,50,000/year reduces taxable income |
| Interest Earned (E) | Fully tax-free | No TDS, no tax on annual interest |
| Maturity/Withdrawal (E) | Fully tax-free | Entire maturity amount is exempt |
Tax Saving Example
For a person in the 30% tax bracket investing Rs 1,50,000 in PPF:
- Annual tax saved: Rs 1,50,000 x 30% + 4% cess = Rs 46,800
- 15-year tax savings: Rs 46,800 x 15 = Rs 7,02,000
- Total benefit: Rs 40,68,209 (maturity) + Rs 7,02,000 (tax saved) = Rs 47,70,209
---
Loan Against PPF
You can take a loan against your PPF balance from the 3rd financial year to the 6th financial year of opening the account.
| Feature | Details |
|---|---|
| Eligibility | 3rd to 6th financial year from opening |
| Maximum loan | 25% of balance at end of 2nd preceding year |
| Interest rate | PPF rate + 1% (currently 8.1%) |
| Repayment | Within 36 months |
| Second loan | After first loan is fully repaid |
Example
PPF balance at end of Year 2: Rs 3,00,000 Maximum loan in Year 4: 25% of Rs 3,00,000 = Rs 75,000
---
Partial Withdrawal Rules
From the 7th financial year onwards, you can make one partial withdrawal per year:
Maximum withdrawal = 50% of balance at end of 4th preceding year
OR
50% of balance at end of preceding year
(whichever is lower)
| Year of Withdrawal | Basis Year for Calculation | Example (if balance was Rs 8L) |
|---|---|---|
| Year 7 | Balance at end of Year 3 | 50% of Year 3 balance |
| Year 10 | Balance at end of Year 6 | 50% of Year 6 balance |
| Year 15 (maturity year) | Balance at end of Year 11 | 50% of Year 11 balance |
---
PPF vs Other Safe Investments
| Feature | PPF | FD (5-year tax saving) | NSC | Sukanya Samriddhi | Senior Citizen Savings Scheme |
|---|---|---|---|---|---|
| Interest Rate | 7.1% | 6.5-7.5% | 7.7% | 8.2% | 8.2% |
| Tax Status | EEE | EEI (interest taxable) | EEI | EEE | EEI |
| Lock-in | 15 years | 5 years | 5 years | Till girl turns 21 | 5 years |
| Risk | Zero (sovereign) | Zero (bank, DICGC up to Rs 5L) | Zero (sovereign) | Zero (sovereign) | Zero (sovereign) |
| Contribution Limit | Rs 1.5L/year | No limit (80C cap Rs 1.5L) | No limit (80C cap Rs 1.5L) | Rs 1.5L/year | Rs 30L max |
| Loan Facility | Yes (Year 3-6) | No | No | No | No |
---
Frequently Asked Questions
Q: Can I have more than one PPF account?
No, an individual can have only one PPF account. Opening a second account is a violation of PPF rules, and the second account will not earn any interest. However, you can open one account in your own name and one in the name of your minor child (as guardian). The combined contribution limit across both accounts is Rs 1,50,000 per year.
Q: What happens if I miss a year's contribution to PPF?
Your PPF account becomes inactive (dormant) if you fail to deposit the minimum Rs 500 in any financial year. To reactivate, you need to pay Rs 500 for each year of default plus a penalty of Rs 50 per defaulted year. The account continues to earn interest even when dormant, but you cannot withdraw or take loans from an inactive account.
Q: Should I invest in PPF or ELSS for Section 80C?
If you prioritize safety and tax-free returns, choose PPF. If you want higher returns and can tolerate market volatility, choose ELSS (3-year lock-in vs 15 years). Many investors split their 80C limit: Rs 1,00,000 in PPF for stability and Rs 50,000 in ELSS for growth potential.
Q: When is the best time to deposit money in PPF?
Deposit before the 5th of April (start of financial year) for maximum interest. If you invest monthly, always deposit before the 5th of each month. Interest is calculated on the minimum balance between the 5th and month-end. A lump sum on April 1-4 earns the highest possible interest for the year.
---
Calculate Your PPF Maturity
Plan your PPF investments with our free calculator. See year-by-year balance growth, interest earned, and maturity projections. PPF Calculator → | PPF Maturity Table →