PPF Calculator (Public Provident Fund)

What is PPF?

The Public Provident Fund is a government-backed savings scheme available at post offices and major banks. It has a 15-year lock-in, which can be extended in blocks of 5 years. The interest rate is set by the Government every quarter – it has been 7.1% per year for a long time. PPF has EEE tax status: your deposit qualifies for Section 80C deduction (old regime), the interest is tax-free and the maturity amount is also tax-free. That makes it one of the safest long-term options for a middle-class Indian family.

How PPF interest is calculated

Interest is calculated on the lowest balance between the 5th and the last day of each month, and credited once a year on 31 March. So deposit before the 5th of the month – ideally before 5 April for the full year's interest. This calculator assumes you deposit at the start of every year and the interest compounds yearly:

Example: ₹1,50,000 every year for 15 years at 7.1% → invested ₹22.5 lakh, maturity about ₹40.68 lakh. Extending for another 5 + 5 years with the same deposit takes it above ₹1 crore by year 25.

PPF rules at a glance

• Minimum ₹500 and maximum ₹1,50,000 per financial year.
• Only one PPF account per person; parents can open one for a minor.
• Partial withdrawal allowed from the 7th financial year; loan facility from the 3rd to 6th year.
• Premature closure allowed after 5 years only for specific reasons (medical, higher education), with 1% lower interest.
• After maturity you can extend with or without fresh deposits.

PPF vs FD vs SIP

PPF gives guaranteed, tax-free returns but low liquidity. FD is flexible but interest is taxable. Equity SIP can give higher returns over 15+ years but with market risk. Bahut log teeno ka mix rakhte hain – safe part PPF mein, growth part SIP mein. The rate used here is editable because the Government revises it quarterly; check the latest rate on the India Post or your bank's website.