PPF Calculator

PPF Calculator 7.1% p.a. (Q1 FY2025-26)

EEE Status: PPF is Exempt-Exempt-Exempt - contribution (80C), interest and maturity are all 100% tax-free. Only instrument with triple tax exemption under Old Regime.

Annual Contribution

PPF Interest Rate (p.a.)

Investment Period

Extension Type (after 15 yrs)

Investment Month (for interest calc)

Opening Balance (if existing account)

Max contribution: ₹1,50,000 per year. Min: ₹500 per year. Interest is calculated on minimum balance between 5th and last day of each month.

Maturity Amount (Tax-Free)

Year-wise PPF Statement

Run the calculator first. Years 1–15 = base period. Extended years shown in blue.

Year	Opening Balance	Contribution	Interest Earned	Closing Balance	80C Eligible
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PPF Loan & Partial Withdrawal

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Loan Against PPF

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💸 Partial Withdrawal

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Loan Rules

Loan available: From Year 3 to Year 6 Max loan amount: 25% of balance at end of Year 2 (or end of preceding year if less) Interest rate: PPF rate + 1% = 8.1% (currently) Repayment: Within 36 months After Year 6 (when partial withdrawal starts), loans are no longer available.

Partial Withdrawal Rules

Available from: Year 7 onwards (from Year 6 end balance) Max withdrawal: 50% of balance at end of Year 4 OR 50% of balance at end of preceding year (whichever is lower) Frequency: Once per financial year Tax: Completely tax-free Account closure before maturity is only allowed after 5 years for specific medical/educational reasons.

How PPF Interest Is Calculated

PPF Interest Calculation Rule

Interest is calculated on the MINIMUM BALANCE between the 5th day and the LAST DAY of each month. Key Rule: Invest BEFORE the 5th of April to get interest for the full month of April. Investing after 5th = interest from May. Annual interest = Sum of 12 monthly interest amounts Credited: At end of each financial year (March 31)

Compounding Formula

PPF effectively compounds annually. Year-end balance = Opening + Contribution + Interest Interest for year = (Opening + Contribution) × rate (simplified - actual is monthly min balance) Example: ₹1,50,000/year at 7.1% for 15 years Year 1: ₹1,50,000 + ₹10,650 = ₹1,60,650 Year 2: ₹3,10,650 + ₹22,056 = ₹3,32,706 ... Year 15: Maturity ≈ ₹40,68,209

EEE Tax Benefits

E1 - Exempt on Investment: Contribution up to ₹1.5L deductible under 80C (Only under Old Tax Regime) E2 - Exempt on Accumulation: Interest earned is completely tax-free NOT added to taxable income E3 - Exempt on Maturity: Entire maturity amount is tax-free No capital gains tax, no TDS This triple exemption makes PPF one of the most tax-efficient instruments available in India.

Extension After 15 Years

After 15 years, you can: Option 1: Withdraw entire amount (tax-free) and close. Option 2: Extend for 5 years WITH contribution Continue ₹500–₹1.5L deposits per year Earn PPF interest on full corpus Partial withdrawal of 60% allowed per block Must apply within 1 year of maturity Option 3: Extend WITHOUT contribution (passive) No deposits needed Account continues earning PPF interest Full withdrawal allowed anytime No 80C benefit Extensions are in 5-year blocks, unlimited times.

Frequently Asked Questions

PPF (Public Provident Fund) is a government-backed, long-term savings scheme with a 15-year lock-in period. It offers EEE (Exempt-Exempt-Exempt) tax status - contributions qualify for 80C deduction (Old Regime), interest is completely tax-free, and the maturity amount is fully tax-free. The current rate is 7.1% p.a. compounded annually, backed by a sovereign guarantee. Its combination of safety, guaranteed returns, and unmatched tax efficiency makes it one of the best risk-free savings instruments in India.

The PPF interest rate is 7.1% per annum, compounded annually and credited on March 31 each year. The rate is set and revised quarterly by the Government of India, though it has remained at 7.1% since April 2020. Historical PPF rates have ranged from 4% (2000-01) to 12% (1986-87). The rate applies uniformly to all PPF accounts regardless of which bank or post office holds the account.

For taxpayers in the 20–30% bracket, PPF is significantly better. FD interest is taxable at slab rate; PPF interest is completely tax-free. Effective post-tax yield: FD at 7.25% for 30% bracket = 5.07%. PPF at 7.1% = 7.1% (no tax, ever). PPF wins by nearly 2 percentage points. The 15-year lock-in and ₹1.5L annual investment cap are the trade-offs versus FD flexibility. For short-term or liquid savings, FDs remain appropriate.

No - maximum contribution is ₹1,50,000 per account per financial year. Any excess deposited is returned without interest. You can have only one PPF account in your own name. You can also open one account in a minor child's name, but both accounts together count toward the ₹1.5L limit for 80C deduction purposes. Joint PPF accounts are not permitted under PPF rules.

From Year 7 (after completing 6 full financial years): maximum withdrawal = 50% of the lower of (a) balance at end of Year 4 or (b) balance at the end of the immediately preceding year. Only one withdrawal per financial year. Withdrawals are completely tax-free and no reason needs to be provided. Premature closure before 15 years is only permitted for specific reasons (serious illness, higher education, change of residency) with a 1% interest penalty.

Extension with contributions: Recommended if you still need 80C deductions and have money to invest. The full corpus earns 7.1% while new contributions also get 80C benefit and earn interest. Extension without contributions: Best if you don't need 80C deductions but want the existing corpus to continue growing tax-free. You can make one partial withdrawal per year from the extended balance. PPF can be extended indefinitely in 5-year blocks, making it an effectively permanent tax-free savings vehicle.

Yes, from Year 3 to Year 6 only. Maximum loan: 25% of the balance at the end of the 2nd year. Interest rate: PPF rate + 1% (currently 8.1%). Repayment: principal within 36 months (if not repaid, charged at 6% on the outstanding amount). After completing Year 6, loans are no longer available - partial withdrawals replace this facility from Year 7. Interest on PPF loans is lower than most personal loans, making it a reasonable emergency option.

Interest is calculated on the minimum balance between the 5th and last day of each month. Key rule: invest before the 5th of each month to earn interest for that full month. Most importantly: invest before April 5th each year to earn interest on your full annual contribution for the entire year. Investing after April 5 loses one month's interest on your contribution. At ₹1.5L and 7.1%, one missed month = approximately ₹888. Interest is annually credited to the PPF account on March 31.

PPF Calculator - How Public Provident Fund Works and Why EEE Status Makes It Unique

PPF (Public Provident Fund) is one of the most effective wealth-building instruments available to Indian citizens, yet it is often undervalued because its advantages are cumulative and visible only over the full 15-year horizon. The combination of guaranteed sovereign returns, complete EEE tax exemption, and the power of compounding over 15 years makes PPF hard to beat on a risk-adjusted, post-tax basis for the conservative portion of any portfolio.

Quick example - ₹1.5L/year for 15 years at 7.1%: Total invested = ₹22.5 lakh. Maturity amount = approximately ₹40.7 lakh. Total interest = ₹18.2 lakh - entirely tax-free. Annual 80C saving at 30% bracket = ₹46,800/year. Over 15 years total tax saved on contributions = approximately ₹7 lakh. Effective post-tax return is significantly higher than the nominal 7.1%.

PPF EEE Tax Status - The Most Powerful Feature

PPF is one of the very few savings instruments in India with complete EEE (Exempt-Exempt-Exempt) status:

What EEE Means

First E - Contribution exempt: Up to ₹1.5L/year deductible under Section 80C (Old Regime). Saves ₹46,800/year at 30% bracket.
Second E - Interest exempt: 7.1% interest is completely tax-free every year - unlike FD interest which is taxed at slab rate.
Third E - Maturity exempt: The full corpus at maturity is received without any income tax. No capital gains, no surcharge, no cess.

Effective Post-Tax Yield Comparison

PPF at 7.1% - effective post-tax yield: 7.1% (fully tax-free)
Bank FD at 7.25% - at 30% slab: effective yield = 5.07%
Bank FD at 7.25% - at 20% slab: effective yield = 5.80%
NSC at 7.7% - partially EEE but reinvested interest taxable: effective ~5.5% at 30%
PPF wins on post-tax yield against most comparable instruments

PPF Interest Calculation - The 5th of the Month Rule

PPF interest is calculated monthly on the minimum balance between the 5th and last day of the month. This creates one of the most important PPF tips: invest before the 5th of April each year to earn interest for April.

If you invest ₹1.5L on April 1, you earn interest on ₹1.5L for all 12 months of the year. If you invest on April 6, you earn interest starting from May - losing one month's interest on ₹1.5L. At 7.1%, one month's interest on ₹1.5L = approximately ₹888. Over 15 years, consistently investing before the 5th of April vs after can mean a meaningful difference in the final corpus.

Partial Withdrawal and Loan Rules

Loans (Year 3 to Year 6): Loan available from the 3rd financial year onwards, up to 25% of the balance at the end of Year 2. Interest rate: PPF rate + 1% (currently 8.1%). Repayment within 36 months. After Year 6, loans are no longer available - use partial withdrawals instead.
Partial withdrawal (from Year 7): Available after 6 full financial years. Maximum: 50% of the lower of (a) balance at end of Year 4 or (b) balance at end of the preceding year. One withdrawal per financial year. All partial withdrawals are completely tax-free - no questions asked about usage.
Premature closure: Allowed only in cases of life-threatening illness, higher education of account holder or minor, or change in residency status. A penalty of 1% interest reduction applies on the amount withdrawn prematurely.

PPF Extension - The 5-Year Block Opportunity

After the 15-year maturity, PPF can be extended in 5-year blocks. Two options:

Extension with contributions: Continue investing up to ₹1.5L/year. The entire corpus (original + new contributions) earns interest. Fresh contributions get 80C deduction. Partial withdrawals are available from the extended block. This is generally the best option if you still need 80C deductions and have money to invest.
Extension without contributions: The corpus remains invested and earns 7.1% tax-free interest without any new deposits. You can make one partial withdrawal per year from the extended balance. Good if you don't need 80C deductions but want to keep the tax-free corpus growing.

Technically, PPF can be extended indefinitely in 5-year blocks - effectively making it a permanent tax-free savings vehicle for those who don't need the liquidity.

How this calculator works, and where the numbers come from

The PPF Calculator applies the standard formula for this calculation to the values you enter and updates the result as you type. The calculation itself happens in your browser, and the page explains the method so you can check any result by hand.

Please note: Projections assume the inputs you enter stay constant; real returns vary. Results are estimates, not financial advice.

Sources and further reading

Learn more

Read our guide: Compound Interest and the Rule of 72, Checked Against the Math

Last reviewed: October 6, 2026 by the CalcQube Editorial Team. See our editorial policy for how we build and check calculators, or report an error.