PPF Calculator
Calculate PPF returns
PPF Benefits:
- ✓ Tax-free returns (EEE status)
- ✓ Government-backed security
- ✓ Lock-in period: 15 years (extendable)
- ✓ Annual investment: ₹500 - ₹1,50,000
- ✓ Partial withdrawal after 7 years
- ✓ Loan facility after 3 years
💰 Tax Benefit: Investments up to ₹1.5 lakh qualify for deduction under Section 80C. Interest earned and maturity amount are completely tax-free!
Note: PPF is an India-specific government scheme. Regulatory limits and examples shown below are in Indian Rupees (INR). The calculator above automatically detects your currency for calculations.
What is Public Provident Fund (PPF)?
Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It offers attractive interest rates with complete tax exemption on returns, making it one of the safest and most popular investment options for Indian investors.
How PPF Calculator Works:
Our PPF calculator uses the compound interest formula to calculate your maturity amount:
M = P × ({[1 + i]^n – 1} / i)
Where: M = Maturity amount, P = Yearly investment, i = Interest rate, n = Number of years
Key Features of PPF:
- Tax Benefits (EEE Status): Investment, interest, and maturity all tax-free
- Government Backing: 100% safe and secure investment
- Lock-in Period: 15 years (can be extended in blocks of 5 years)
- Interest Rate: Currently 7.1% p.a. (revised quarterly by government)
- Investment Limits: Minimum ₹500, Maximum ₹1,50,000 per year
- Partial Withdrawal: Allowed from 7th year onwards
- Loan Facility: Available from 3rd to 6th year
- Account Extension: Can be extended indefinitely in 5-year blocks
PPF Investment Rules:
- Minimum Investment: ₹500 per year (account remains active)
- Maximum Investment: ₹1,50,000 per year (Section 80C limit)
- Deposit Frequency: Can be made monthly, quarterly, or annually
- Number of Deposits: Maximum 12 deposits per financial year
- Interest Calculation: On lowest balance between 5th and last day of month
- Maturity Period: 15 years from end of financial year of account opening
Tax Benefits:
- Section 80C Deduction: Up to ₹1.5 lakh investment qualifies for tax deduction
- Tax-Free Interest: Interest earned is completely exempt from income tax
- Tax-Free Maturity: Maturity amount is not taxable
- EEE Status: Exempt-Exempt-Exempt (best tax treatment possible)
Partial Withdrawal Rules:
- Allowed from the 7th financial year onwards
- Maximum withdrawal: 50% of balance at end of 4th year or preceding year
- Only one withdrawal allowed per financial year
- No tax on withdrawal amount
Loan Against PPF:
- Available from 3rd to 6th financial year
- Maximum loan: 25% of balance at end of 2nd preceding year
- Interest rate: PPF rate + 1% (currently 8.1%)
- Repayment: Within 36 months from first day of month of loan
Who Should Invest in PPF?
- Risk-averse investors: Looking for guaranteed returns
- Long-term planners: Can lock money for 15+ years
- Tax savers: Want to maximize Section 80C benefits
- Retirement planning: Building a tax-free retirement corpus
- Conservative investors: Prefer government-backed security
Example Calculation:
Scenario:
- Yearly Investment: 1,50,000 (maximum allowed in India)
- Time Period: 15 years
- Interest Rate: 7.1% p.a.
Results:
- Total Investment: 22,50,000
- Interest Earned: 18,18,209
- Maturity Amount: 40,68,209
- All tax-free!
PPF vs Other Investment Options:
| Feature | PPF | FD | NSC |
|---|---|---|---|
| Interest Rate | 7.1% | 6-7% | 7.7% |
| Tax on Interest | Tax-free | Taxable | Taxable |
| Lock-in Period | 15 years | Flexible | 5 years |
| 80C Benefit | Yes | Only Tax-saver FD | Yes |
💡 Pro Tips for PPF Investment:
- Invest before 5th of every month to maximize interest
- Make lump sum investment in April to get full year's interest
- Extend account after 15 years to continue tax-free compounding
- Open PPF account for minor children for their future
- Combine with other 80C instruments for complete tax planning
- Use PPF for long-term goals like retirement or children's education
Important Disclaimer
For Educational and Informational Purposes Only: This calculator is provided solely for educational and informational purposes. It is designed to help you understand potential investment outcomes and should not be considered as financial, investment, tax, or legal advice.
Not Professional Advice: The calculations, results, and information provided by this tool do not constitute professional financial advice, investment recommendations, or tax guidance. Always consult with a qualified financial advisor, certified financial planner, tax consultant, or legal professional before making any investment or financial decisions.
Accuracy and Assumptions: While we strive to ensure the accuracy of our calculators, the results are based on the inputs you provide and certain assumptions. Actual returns, interest rates, tax implications, and other factors may vary significantly based on market conditions, government policies, individual circumstances, and other variables beyond our control.
No Guarantees: Past performance is not indicative of future results. The calculations provided are estimates and projections only. We make no guarantees, warranties, or representations regarding the accuracy, completeness, or reliability of the information or calculations provided.
Regional Variations: Financial regulations, tax laws, interest rates, and investment rules vary significantly by country, state, and jurisdiction. The information provided may not be applicable to your specific location or circumstances. Always verify current rates, rules, and regulations with official sources or local authorities.
Tax Implications: Tax laws are complex and subject to change. The tax-related information provided is general in nature and may not apply to your specific situation. Consult a qualified tax professional for advice tailored to your individual circumstances.
Market Risks: All investments carry risk, including the potential loss of principal. Market conditions, economic factors, and other variables can significantly impact investment performance. Diversification and asset allocation do not guarantee profit or protect against loss.
Currency and Exchange Rates: Currency detection and conversion are provided for convenience only. Exchange rates fluctuate constantly and may differ from the rates used in calculations. Always verify current exchange rates with your financial institution.
Updates and Changes: Interest rates, contribution limits, tax benefits, and other financial parameters are subject to change by government authorities, regulatory bodies, and financial institutions. We recommend verifying current rates and rules with official sources before making any decisions.
No Liability: We shall not be liable for any direct, indirect, incidental, consequential, or punitive damages arising from your use of this calculator or reliance on the information provided. Use this tool at your own risk.
Independent Verification: Always independently verify all calculations, rates, and information with official sources, financial institutions, or qualified professionals before making any financial commitments or investment decisions.
By using this calculator, you acknowledge that you have read, understood, and agree to this disclaimer. You accept full responsibility for any decisions made based on the information provided by this tool.