PPF calculator
Depositing the full ₹1.5 lakh a year into PPF at 7.1% matures at about ₹40,68,209 after 15 years — ₹22,50,000 of deposits and ₹18,18,209 of interest, entirely tax-free. The rate is set quarterly by the government, so treat it as editable, not fixed.
Your PPF deposits
PPF accepts ₹500 to ₹1,50,000 a financial year.
The government revises this every quarter. Check the current rate before relying on the result.
The base term is 15 years, extendable in 5-year blocks.
At maturity
What you investWhat compounding adds
| Year | Invested | Returns | Value at year end |
|---|---|---|---|
| 1 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 2 | ₹3,00,000 | ₹32,706 | ₹3,32,706 |
| 3 | ₹4,50,000 | ₹66,978 | ₹5,16,978 |
| 4 | ₹6,00,000 | ₹1,14,334 | ₹7,14,334 |
| 5 | ₹7,50,000 | ₹1,75,701 | ₹9,25,701 |
| 6 | ₹9,00,000 | ₹2,52,076 | ₹11,52,076 |
| 7 | ₹10,50,000 | ₹3,44,524 | ₹13,94,524 |
| 8 | ₹12,00,000 | ₹4,54,185 | ₹16,54,185 |
| 9 | ₹13,50,000 | ₹5,82,282 | ₹19,32,282 |
| 10 | ₹15,00,000 | ₹7,30,124 | ₹22,30,124 |
| 11 | ₹16,50,000 | ₹8,99,113 | ₹25,49,113 |
| 12 | ₹18,00,000 | ₹10,90,750 | ₹28,90,750 |
| 13 | ₹19,50,000 | ₹13,06,643 | ₹32,56,643 |
| 14 | ₹21,00,000 | ₹15,48,515 | ₹36,48,515 |
| 15 | ₹22,50,000 | ₹18,18,209 | ₹40,68,209 |
The rules that shape the result
- ₹500 minimum, ₹1,50,000 maximum a financial year. Miss the minimum and the account goes dormant until you pay a penalty to revive it.
- 15-year base term, counted from the end of the financial year you opened it — so it is usually a little over fifteen calendar years. Extendable in five-year blocks, with or without further contributions.
- Rate revised quarterly by the government. It is not locked in at opening, which is why a 15-year projection at today's rate is an estimate.
- EEE tax status — deduction on the way in under 80C (old regime), no tax on the interest, no tax at maturity. That combination is rare and is most of PPF's appeal.
- Deposit early in the year. Interest is calculated on the lowest balance between the 5th and the last day of each month, so depositing before the 5th of April earns a full year rather than eleven months.
That last point is worth real money over fifteen years and is the most commonly missed.
PPF against an equity SIP
Same ₹1.5 lakh a year for fifteen years, two instruments:
| Instrument | Deposited | Maturity | Tax at exit |
|---|---|---|---|
| PPF, 7.1% | ₹22,50,000 | ₹40,68,209 | None |
| Equity SIP, 12% | ₹22,50,000 | ₹63,07,200 | 12.5% above ₹1.25L/yr |
The equity column is larger, and it is also the only one that can be smaller than your deposits. PPF's number is a promise; the SIP's is a projection. That is the actual trade, and it is not resolved by looking at which figure is bigger.
Most sensible portfolios hold both — PPF as the guaranteed floor, equity for growth. The longer comparison is in SIP vs PPF.
Before you rely on this
An estimate, not a forecast
This is arithmetic applied to assumptions you chose. Mutual funds carry market risk, returns are not guaranteed, and past performance does not indicate future results. Nothing here is personalised advice — for decisions of any size, speak to a SEBI-registered investment adviser.
Questions people actually ask
What is the current PPF interest rate?
The calculator defaults to 7.1%, but the government revises small-savings rates every quarter, so this page deliberately does not present a rate as fact.
Check the current notified rate on the National Savings Institute site or at any post office or bank branch, then type it in above.
Is PPF interest really tax-free?
Yes. PPF has exempt-exempt-exempt status: the deposit qualifies for an 80C deduction under the old regime, the interest accrues tax-free, and the maturity amount is not taxed.
Note the first of those three depends on your regime — under the new regime you get the tax-free interest and maturity, but no deduction going in.
Can I withdraw from PPF before 15 years?
Partially. One withdrawal a year is allowed from the seventh financial year, capped at a proportion of the balance. Loans against the balance are possible earlier. Full premature closure is permitted only in narrow cases such as serious illness or higher education, with an interest penalty.
Treat PPF as genuinely long-term money.
Why does my bank statement differ from this calculator?
Almost always the deposit timing rule. Interest is computed on the lowest balance between the 5th and the last day of each month, so a deposit made on the 10th earns nothing for that month.
This calculator assumes one deposit at the start of each year, which is the optimal pattern. If you deposit monthly or late in the year, your real balance will be somewhat lower.