How is PPF interest calculated?

PPF interest compounds annually and is credited at the end of the financial year (March 31). The formula is computed iteratively: Balance_year = (Balance_previous + Annual_Deposit) × (1 + Interest_Rate/100).

What is the lock-in period for PPF?

A PPF account has a mandatory lock-in period of 15 financial years. Post this, accounts can be extended indefinitely in blocks of 5 years.

What is the tax treatment of PPF?

PPF enjoys EEE (Exempt-Exempt-Exempt) status. Deposits qualify for deduction under Section 80C (up to ₹1.5 Lakhs), interest accrued is tax-exempt, and maturity withdrawals are also completely tax-free.

What is the maximum investment limit in PPF?

The minimum deposit required is ₹500 per year, and the maximum deposit allowed is ₹1.5 Lakhs (₹150,000) per financial year.

PPF Calculator 🇮🇳 India Only

Q: What is a Public Provident Fund (PPF)?

PPF is a popular long-term savings-cum-investment scheme in India, backed by the Central Government, offering guaranteed returns, tax deductions under Section 80C, and tax-free maturity payouts (EEE status).

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Estimate your long-term compounding maturity wealth in the government-backed Public Provident Fund (PPF) system.

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PPF Investment Parameters

Yearly Investment (Max ₹1.5 Lakh)

₹

Time Period (15 - 50 Years)

Yrs

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How to Use the PPF Calculator

Estimate your guaranteed PPF maturity wealth:

Adjust the Yearly Investment slider (from ₹500 minimum to ₹1.5 Lakh maximum per year).
Define the investment Time Period (minimum PPF lock-in is 15 years, extendable up to 50 years).
Click Calculate Returns to evaluate growth charts and summary metrics.

PPF Calculation Formula

Interest is compounded annually on March 31. Under the assumption that contributions are made lump-sum at the start of each fiscal year (April 1), the formula is computed iteratively:

A_t = (A_{t-1} + F) × (1 + r / 100)

A_t = PPF balance at the end of year t

F = Annual investment installment deposit

r = Dynamic annual interest rate (e.g. 7.1%)

Frequently Asked Questions

What is a Public Provident Fund (PPF)?

PPF is a government-backed savings scheme in India designed for long-term secure wealth accumulation, featuring tax exemptions.

Can I withdraw PPF money early?

Partial withdrawals are permitted from the 7th financial year onward, subject to specific limits (e.g. 50% of the balance at the end of the 4th preceding year or preceding year, whichever is lower).

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Is PPF better than EPF?

EPF is mandatory for salaried employees and has a slightly higher interest rate, while PPF is open to all citizens (including self-employed individuals). Both offer excellent tax-free compounding returns.

What happens if I miss a PPF annual deposit?

If you fail to deposit the ₹500 yearly minimum, your account becomes inactive. You can reactivate it by paying a penalty of ₹50 per inactive year along with the minimum deposit for each missed year.

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