In short
The Public Provident Fund (PPF) is a government-backed savings scheme in India. You deposit up to ₹1.5 lakh each financial year for 15 years, interest is added every 31 March, and both the interest and the maturity amount are tax-free. This calculator shows what your account is worth at maturity.
How PPF interest works
Interest is worked out every month on the lowest balance between the 5th and the last day of the month, at one twelfth of the yearly rate. It is added to the account once a year, on 31 March, and then earns interest itself.
Money that arrives by the 5th counts for that whole month; money that arrives on the 6th or later starts earning from the next month. That is why depositing the full amount by 5 April earns the most.
Worked example
Deposit ₹1,50,000 by 5 April every year for 15 years at 7.1%. You put in ₹22,50,000 and the account matures at about ₹40,68,209, so you earn ₹18,18,209 of tax-free interest.
Paying the same ₹1,50,000 as ₹12,500 by the 5th of every month gives about ₹39,44,599, around ₹1.2 lakh less, because each instalment earns interest for fewer months. Extending the account by 5 years with the same deposits takes the maturity value to about ₹66,58,288.
Rules to know
The minimum deposit is ₹500 and the maximum is ₹1,50,000 per financial year, across your own account and any account you open for a minor child. You can pay in one go or in several instalments.
The account runs for 15 full financial years after the year you open it. You can then withdraw the balance or extend the account in blocks of 5 years, with or without further deposits. Partial withdrawals are allowed from the 7th financial year, and loans against the balance from the 3rd to the 6th year.
Deposits qualify for the Section 80C deduction under the old tax regime, and the interest and maturity amount are tax-free.
Frequently asked questions
What is the current PPF interest rate?
7.1% a year, compounded yearly. It has stayed at 7.1% since April 2020, but the government reviews it every quarter, so check the rate for the current quarter and change it in the calculator if needed.
Why does the calculator assume the same rate for every year?
No one knows future rates. Using today's rate for the whole term gives a fair estimate; you can try a lower or higher rate to see the range of outcomes.
Is it better to deposit once a year or every month?
One deposit by 5 April earns the most, because the whole amount earns interest for all twelve months. Monthly deposits are fine too; just make sure each arrives by the 5th.
What happens after 15 years?
You can close the account and take the money, keep it open without new deposits (it still earns interest), or extend it for 5 years with deposits. Extensions can be repeated. Choose a longer term above to see the effect of extending with the same deposits.
Is PPF interest taxable?
No. PPF has exempt-exempt-exempt status: deposits can be deducted under Section 80C in the old regime, and the interest and maturity amount are not taxed.
Methodology
For each financial year the interest is the sum over twelve months of (balance counted for that month) × r / 12, added on 31 March. With one deposit by 5 April the balance counted all year is the opening balance plus the deposit, so interest = (B + D) × r. With monthly deposits by the 5th, month m counts the opening balance plus m instalments. Amounts are shown rounded to the nearest rupee.
This calculator gives estimates for information only and is not financial advice. The PPF rate is set by the Government of India and can change every quarter; the rules of the scheme apply.
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