PPF Calculator

Calculate your Public Provident Fund maturity amount, total interest earned, and plan your tax-free PPF investments.

Current PPF rate set by Government of India: 7.1%. Adjust to model different scenarios.

Maturity Amount ₹40,68,209
Total Investment ₹22,50,000
Interest Earned ₹18,18,209
Maturity Amount ₹40,68,209

About Public Provident Fund (PPF)

PPF is one of India's most popular long-term savings instruments, backed by the Government of India. It offers guaranteed, risk-free returns with complete tax exemption under the EEE (Exempt-Exempt-Exempt) framework — your investment qualifies for deduction under Section 80C (up to ₹1.5 lakh/year), the interest earned is tax-free, and the maturity amount is also fully tax-exempt.

FV = P × [{(1 + r)n − 1} / r]

P = Annual deposit (₹500 to ₹1,50,000)

r = Annual interest rate (7.1% = 0.071)

n = Number of years (minimum 15 years)

Tax-Free Returns

PPF enjoys EEE status. Investment up to ₹1.5 lakh/year is deductible under Section 80C. Interest earned and maturity proceeds are completely tax-free, making it one of the most tax-efficient instruments in India.

Government Backed

PPF is a sovereign guarantee scheme. Your principal and interest are guaranteed by the Government of India, making it virtually risk-free — unlike mutual funds or equities that carry market risk.

Lock-in & Extension

PPF has a 15-year lock-in period. After maturity, you can extend in blocks of 5 years (with or without contributions). Partial withdrawals are allowed from the 7th year, and loans against the balance from the 3rd to 6th year.

Frequently Asked Questions About PPF

What is PPF (Public Provident Fund)?

PPF (Public Provident Fund) is a long-term savings scheme backed by the Government of India, introduced in 1968. It has a lock-in period of 15 years, extendable in blocks of 5 years after maturity. PPF offers guaranteed, risk-free returns at the government-set interest rate (currently 7.1% p.a., compounded annually). The minimum annual deposit is ₹500 and the maximum is ₹1,50,000.

PPF enjoys EEE (Exempt-Exempt-Exempt) tax status:

  • Investment qualifies for deduction under Section 80C (up to ₹1.5 lakh/year)
  • Interest earned is completely tax-free
  • Maturity amount is fully tax-exempt

You can open a PPF account at any post office or designated bank (SBI, HDFC Bank, ICICI Bank, etc.). Only one PPF account is allowed per individual (not counting one in the name of a minor child).

What is the PPF interest rate in 2026?

The PPF interest rate for FY 2025-26 is 7.1% per annum, compounded annually. Key facts about PPF interest:

  • The rate is set by the Government of India and reviewed quarterly by the Ministry of Finance
  • PPF rate has been 7.1% since April 2020 (Q1 FY2020-21)
  • Interest is calculated on the lowest balance between the 5th and last day of each month
  • Interest is credited to the account at the end of the financial year (March 31)

To maximise interest earned, deposit your annual contribution before the 5th of April each year, so the entire amount earns interest for all 12 months.

PPF vs FD: Which is a better investment?

Both PPF and FD offer guaranteed returns, but they differ significantly:

  • Tax treatment: PPF interest is fully tax-free (EEE status). FD interest is taxable at your slab rate, and TDS applies if interest exceeds ₹40,000/year.
  • Effective returns: PPF at 7.1% tax-free beats a 7% FD for anyone in the 20% or 30% tax bracket. A 7% FD gives only ~4.9% post-tax return for someone in the 30% bracket.
  • Lock-in: PPF has a 15-year lock-in. FDs offer flexible tenures from 7 days to 10 years.
  • Safety: PPF is sovereign-guaranteed. FD deposits up to ₹5 lakh are insured by DICGC.
  • Section 80C: PPF investment qualifies for 80C deduction. Only 5-year tax-saver FDs qualify.

Verdict: PPF is ideal for long-term, tax-efficient wealth building. FDs are better for short-term needs or emergency funds where liquidity is important.