💰 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.

📌 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.

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Maturity Amount (Tax-Free)

📋 Year-wise PPF Statement

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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

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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.