Free Tool

PPF Calculator

See exactly how your Public Provident Fund deposits compound into a government-guaranteed, tax-free corpus — year by year over 15 to 50 years.

Enter Your Details

Yearly Investment Amount
Expected Interest Rate (%)
%
Investment Duration (Years)
yrs

Deposits vs Interest

Total Deposits

₹7.50L (55%)

Interest Earned

₹6.06L (45%)

Government Guaranteed

Your PPF maturity after 15 years

₹13.56L

81% wealth gained on your deposits

Total Deposited

₹7.50L

Interest Earned

₹6.06L

Maturity Amount

₹13.56L

Corpus Growth

Wealth Projection

Yearly Breakdown

YearDepositedBalance
Yr 1₹50,000₹53,550
Yr 2₹1.00L₹1.11L
Yr 3₹1.50L₹1.72L
Yr 4₹2.00L₹2.38L
Yr 5₹2.50L₹3.09L
Yr 6₹3.00L₹3.84L
Yr 7₹3.50L₹4.65L
Yr 8₹4.00L₹5.51L
Yr 9₹4.50L₹6.44L
Yr 10₹5.00L₹7.43L
Yr 11₹5.50L₹8.50L
Yr 12₹6.00L₹9.64L
Yr 13₹6.50L₹10.86L
Yr 14₹7.00L₹12.16L
Yr 15₹7.50L₹13.56L

What Is the Public Provident Fund?

The Public Provident Fund (PPF) is India's most trusted long-term savings scheme, backed by the Government of India and regulated by the Ministry of Finance. Unlike EPF, PPF is open to every Indian citizen — salaried employees, self-employed professionals, freelancers, and homemakers alike. You can open a PPF account at any post office or designated bank branch with as little as ₹500 per year.

PPF carries the coveted EEE (Exempt-Exempt-Exempt) tax status — your deposits qualify for Section 80C deduction up to ₹1.5 lakh per year, the interest earned at the current PPF interest rate of 7.1% per annum is completely tax-free, and the entire maturity corpus is tax-free on withdrawal. No court attachment order can touch your PPF balance either, making it one of the safest wealth-building instruments available in India. Use our PPF calculator to see exactly how your deposits compound over 15 to 50 years.

How PPF Interest and Compounding Work

1

Annual deposit: You deposit between ₹500 and ₹1,50,000 per financial year into your PPF account in up to 12 instalments.

2

Interest calculation: PPF interest is calculated on the minimum balance between the 5th and last day of each month — deposit before the 5th to maximise every month's interest.

3

Year-end crediting: Interest is credited to your account at the end of each financial year (31 March), and itself earns interest in subsequent years — true compounding.

4

15-year lock-in: Your PPF account matures after 15 full financial years. Early withdrawal is not permitted except for specific medical and educational emergencies after year 7.

5

Extension in blocks of 5 years: After 15 years you can extend indefinitely in 5-year blocks — with or without fresh deposits — letting compounding at PPF interest rate continue tax-free.

Why PPF Is India's Safest Tax-Free Investment

EEE Tax Status — Triple Exemption

Section 80C deduction on deposits, zero tax on interest earned, and the full PPF maturity amount is tax-free. No other government-backed instrument matches this.

Government Guarantee — Zero Default Risk

PPF is a sovereign instrument. Your principal and interest are backed by the Government of India — it cannot default, unlike corporate FDs or bonds.

7.1% Tax-Free Returns

The current PPF interest rate of 7.1% p.a. is tax-free. A bank FD at 7.5% in the 30% tax bracket yields only 5.25% post-tax — PPF beats it by 185 basis points net.

Open to All — Not Just Salaried

Self-employed professionals, freelancers, and homemakers with no EPF access can build a government-backed retirement corpus through PPF.

Loan Against PPF Balance

From year 3 to year 6 you can take a loan against your PPF balance at a nominal 1% interest rate — useful liquidity without breaking long-term compounding.

Attachment-Proof Savings

PPF balances are protected under the PPF Act — they cannot be seized by courts or creditors, making them ideal for business owners managing financial risk.

PPF vs EPF — Which One Is Right for You?

Both carry the EEE tax benefit, but they serve different needs. Here is a side-by-side comparison to help you decide where to put your next rupee.

FeaturePPFEPF
Who can investAny Indian citizenSalaried employees only
Employer contributionNone — self-funded3.67% of basic salary
Mandatory or voluntaryFully voluntaryMandatory for eligible employees
Current interest rate7.1% p.a. (tax-free)8.25% p.a. (tax-free)
Annual deposit limit₹500 – ₹1,50,00012% of basic salary
Lock-in period15 years (extendable)Until retirement / resignation
Partial withdrawalFrom year 7 onwardsVarious reasons allowed
Tax on withdrawalFully tax-free (EEE)Tax-free after 5 years
Pension componentNoneEPS pension after 10 years

Who Should Use This PPF Calculator?

1

Self-employed professionals and freelancers who have no access to EPF and need a government-backed, tax-free alternative for long-term retirement savings.

2

Salaried employees who have maxed out their EPF contributions and want additional Section 80C savings at a guaranteed, tax-free rate above post-tax FD returns.

3

Parents opening a PPF account in a minor child's name — starting at birth gives a 15-year PPF maturity corpus ready exactly when higher education costs arrive.

4

Risk-averse savers who want zero market risk and zero default risk with better post-tax returns than bank fixed deposits — the PPF interest rate of 7.1% beats most FD rates after tax.

5

Business owners and entrepreneurs who want an attachment-proof savings vehicle that courts and creditors cannot seize, providing a secure personal financial foundation.

Step-by-step guide

How to Use This PPF Calculator

1

Enter your Yearly Investment Amount — how much you plan to deposit each financial year. Maximum is ₹1.5 lakh per year. Enter your actual planned amount for the most accurate projection.

2

Set the PPF Interest Rate — defaults to 7.1% (current government rate). Adjust down to 6.5% for a conservative estimate or up if you expect the rate to rise.

3

Choose your Investment Duration — minimum 15 years (PPF lock-in). Use 20, 25, or 30 years to see how the extension blocks dramatically accelerate your corpus.

4

Read your results — maturity amount, total interest earned, year-by-year growth chart, and the deposits vs interest split appear instantly.

Smart Strategies to Maximise Your PPF Corpus

1

Deposit Before the 5th of Every Month

PPF interest is calculated on the minimum balance between the 5th and last day of the month. Depositing your annual amount as a lump sum before April 5th means you earn interest for all 12 months that year — depositing on April 6th costs you one full month of interest on the entire amount.

2

Always Extend — Never Let It Lapse

The 15-year maturity is just the starting line, not the finish line. Extending for two 5-year blocks (to year 25) can roughly triple your corpus compared to closing at year 15. The government guarantee continues, the tax-free status continues, and compounding accelerates on a much larger base.

3

Open One Account per Family Member

You can contribute up to ₹1.5 lakh per year to your own account. You can also open a PPF account in your minor child's name — but the ₹1.5 lakh limit is shared across both accounts combined. A spouse can open their own independent account with a separate ₹1.5 lakh limit, doubling your family's Section 80C PPF capacity.

4

Use PPF as the Risk-Free Anchor of Your Portfolio

PPF delivers 7.1% tax-free with zero market risk and zero credit risk — equivalent to a pre-tax return of ~10% for someone in the 30% bracket. Pair it with equity mutual funds for growth: let PPF be your guaranteed floor while equities aim for alpha above it.

5

Partial Withdrawal Is Available from Year 7

After completing 6 full financial years, you can withdraw up to 50% of the balance at the end of the 4th preceding year. This partial withdrawal is tax-free and doesn't close your account — giving you emergency liquidity without sacrificing long-term compounding.

Frequently Asked Questions about PPF

Public Provident Fund (PPF) is a government-backed long-term savings scheme open to all Indian citizens. You deposit between ₹500 and ₹1.5 lakh per financial year, earn a government-declared interest rate (currently 7.1%), and the account matures after 15 years. Interest is compounded annually and credited to your account at the end of each financial year. The entire maturity corpus — principal plus all interest — is completely tax-free under the EEE regime.

Disclaimer: These tools provide estimates based on the inputs provided. Results are for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor for personalized guidance.