PPF Calculator
15-year Public Provident Fund returns — tax-free maturity
Why PPF is the safest long-term investment in India
PPF is backed by the Government of India — not a bank, not an NBFC, not a mutual fund house. Your principal and interest are sovereign-guaranteed, meaning the only scenario where PPF defaults is if the government itself defaults on domestic debt. It carries EEE (Exempt-Exempt-Exempt) tax status: your contributions qualify for 80C deduction, the interest earned is tax-free, and the maturity amount is completely tax-free. No other fixed-return instrument offers this triple exemption.
How ₹1.5 lakh per year grows over 15 years
At the maximum annual investment of ₹1,50,000 and the current 7.1% rate, your PPF matures at approximately ₹40.68 lakh after 15 years. Of that, ₹22.50 lakh is your total contribution and ₹18.18 lakh is tax-free interest. Extend it for another 5 years with contributions and the corpus crosses ₹65 lakh.
Assumes ₹1.5L annual deposit at 7.1% p.a. compounded annually. Rate subject to quarterly government review.
PPF vs FD vs ELSS — which fits your goal?
PPF wins on safety and tax efficiency. ELSS wins on returns and liquidity. FD wins on flexibility. The right choice depends on your risk appetite and timeline.
Withdrawal and loan rules you should know
Partial withdrawal from year 7
Starting from the 7th financial year of account opening, you can withdraw up to 50% of the balance at the end of the 4th preceding year. Only one withdrawal per financial year is allowed. The withdrawn amount is completely tax-free.
Loan against PPF (years 3-6)
Between the 3rd and 6th financial year, you can take a loan against your PPF balance — up to 25% of the balance at the end of the 2nd preceding year. The interest rate is PPF rate + 1%. Once loan is repaid, no further loan is available after year 6.
Extension in 5-year blocks
After the initial 15-year maturity, you can extend indefinitely in 5-year blocks. Extension with contributions lets you continue depositing and earning interest. Extension without contributions means the existing balance earns interest but no new deposits are allowed.
When you deposit matters — the April 1-5 strategy
PPF interest is calculated on the lowest balance between the 5th and last day of each month. If you deposit your full ₹1.5 lakh on April 1st (before the 5th), you earn interest on that amount for all 12 months. If you deposit on April 6th instead, you lose one month of interest — roughly ₹890 per year at 7.1%. For lump-sum depositors, the first 5 days of April are the optimal window.
Related reading
Results are projections based on the entered rate. PPF interest rate is reviewed quarterly by the Government of India and may change. This tool does not constitute financial advice — consult a qualified advisor before making investment decisions.
Key Terms
EEE Status
Exempt-Exempt-Exempt — contributions are tax-deductible (80C), interest is tax-free, and maturity proceeds are tax-free.
Lock-in Period
The mandatory 15-year period during which the full balance cannot be withdrawn. Partial withdrawals are allowed from year 7 onwards.
Section 80C
Income Tax Act provision allowing up to ₹1.5 lakh deduction for specified investments including PPF, EPF, ELSS, LIC premiums, and home loan principal.