What is a PPF Calculator?
The Public Provident Fund is a government-backed, EEE (exempt-exempt-exempt) savings scheme with a 15-year lock-in, extendable afterwards in blocks of 5 years. Interest is compounded annually on the yearly closing balance, and the rate is notified by the government every quarter — it has held at 7.1% for many consecutive quarters now.
You can deposit up to ₹1,50,000 a year, in up to 12 instalments, and the whole deposit qualifies for Section 80C deduction. This calculator compounds a fixed yearly deposit across your chosen tenure.
How PPF interest is calculated
In practice PPF interest is computed monthly on the lowest balance between the 5th and last day of the month, then credited once at year-end — which is why depositing before the 5th of a month (or as one lump sum early in the financial year) earns more than depositing late.
Worked example: the maximum PPF, start to maturity
Deposit the full ₹1,50,000 every year for 15 years at the current 7.1% rate, and total deposits of ₹22,50,000 grow to roughly ₹40,68,209 at maturity — about ₹18,18,209 in interest, tax-free. The growth isn’t linear: the balance reaches roughly ₹9,25,701 by year 5 and ₹22,30,124 by year 10, meaning the second half of the tenure adds more to the balance than the first half, purely from compounding on a larger base.
Extend the account for another 5 years without any further deposits (an option available after the initial 15-year term), and that ₹40,68,209 alone — left untouched, still earning interest — grows to roughly ₹57,32,587. This is why extending PPF "without contribution" is worth considering even if you don’t need fresh 80C deductions anymore.
The 5th-of-the-month rule, in practice
PPF interest for a given month is calculated on the lowest balance in your account between the 5th and the last day of that month. Deposit on the 3rd, and that month’s deposit earns interest for the full month. Deposit on the 10th, and it earns nothing until the following month — the deposit simply wasn’t part of the balance during the 5th-to-month-end window. Over 15 years, consistently depositing after the 5th (compared to before it) can cost several months’ worth of interest, cumulatively — a small habit with a real, compounding cost.
Frequently asked questions
What is the current PPF interest rate?
The rate has been notified at 7.1% per annum for Q2 FY 2026-27 (July–September 2026), compounded annually. It’s reviewed by the government every quarter, so check the latest notified rate before relying on this for long-range planning.
Can I withdraw before 15 years?
Partial withdrawal is allowed from the 7th financial year onward, subject to limits, and loans against the balance are available even earlier. Full withdrawal is only at maturity, or on extension.
What happens after 15 years?
You can withdraw the full balance, or extend the account in blocks of 5 years — with or without making further contributions — and it keeps earning interest either way.
Is PPF interest taxable?
No — PPF is an EEE instrument: the deposit, the interest earned, and the maturity amount are all tax-free, which is unusual even among government savings schemes.
What’s the minimum yearly deposit to keep a PPF account active?
₹500 a year. Missing this minimum makes the account "inactive," which can be reactivated later by paying the minimum deposit for each missed year plus a small penalty.
Can I have more than one PPF account?
No — only one PPF account is permitted per individual (a separate account can be opened for a minor child, operated by a guardian), and the ₹1,50,000 yearly deposit limit applies across all accounts combined if you’re a guardian on more than one.
Is a PPF account transferable between banks or post offices?
Yes — a PPF account can be transferred from one authorised bank or post office to another without closing it or affecting its tenure, interest, or deposit history.