Free PPF Calculator 2026 to calculate Public Provident Fund maturity amount, interest earned, yearly growth and tax-free returns. Plan your 15-year PPF investment with accurate projections.
Calculate your Public Provident Fund returns with guaranteed government-backed returns. Plan your long-term savings with tax benefits and secure wealth accumulation.
Current PPF Interest Rate
7.1% p.a.
Last updated: December 2025 | As per Government of India guidelines
Interest rate is revised quarterly by the Ministry of Finance
Min: ₹500, Max: ₹1.5L
Current: 7.1% (quarterly)
Min 15 years
When to start
Public Provident Fund enjoys the EEE (Exempt-Exempt-Exempt) status, making it one of the most tax-efficient investment options in India.
| Stage | Tax Status | Details |
|---|---|---|
| Investment | EXEMPT | Tax deduction under Section 80C up to ₹1.5 lakh per year |
| Interest | EXEMPT | Interest earned is completely tax-free (No TDS) |
| Maturity | EXEMPT | Maturity amount is completely tax-free |
Under Section 80C of the Income Tax Act, you can claim a deduction of up to ₹1,50,000 per financial year on your PPF contributions.
Example: Tax Saving Calculation
If you invest ₹1,50,000 in PPF and you're in the 30% tax bracket:
Tax Saved = ₹1,50,000 × 30% = ₹45,000 per year
No TDS on Interest
Unlike FD, no Tax Deducted at Source on PPF interest
No Annual Tax Filing
Interest earned need not be reported in ITR
The Public Provident Fund remains one of India's most trusted long-term savings schemes despite newer investment options emerging in the market. Its unique combination of safety, tax benefits, and guaranteed returns makes it a cornerstone of conservative wealth building.
Long-term tax-free compounding is the defining feature of PPF. Unlike fixed deposits where interest is taxable, every rupee of interest earned in PPF grows tax-free year after year. This EEE (Exempt-Exempt-Exempt) status means your contributions reduce taxable income under Section 80C, interest accumulates without tax deduction, and the entire maturity amount is received tax-free.
Government-backed safety ensures zero default risk. Your PPF balance is guaranteed by the Government of India, making it safer than bank deposits beyond the ₹5 lakh DICGC insurance limit. This sovereign guarantee provides unmatched peace of mind for risk-averse investors.
Ideal for conservative investors who prioritize capital protection over aggressive returns, PPF serves as a reliable retirement corpus builder, emergency fund, or down payment accumulator for major life goals like home ownership or children's education.
Any Indian resident can open a PPF account in their own name at post offices or authorized banks. Only one PPF account per individual is permitted - you cannot have multiple accounts in your name across different branches or institutions.
Parents or legal guardians can open PPF accounts on behalf of minor children. Once the child turns 18, the account is converted to a regular adult PPF account. Non-Resident Indians (NRIs) cannot open new PPF accounts, but existing accounts opened before becoming NRI can continue until maturity.
The minimum annual deposit required to keep a PPF account active is just ₹500. You can deposit this amount in one lump sum or through multiple installments throughout the year, with a maximum of 12 deposits allowed per financial year.
The maximum investment limit is capped at ₹1,50,000 per financial year. This limit applies individually - a family of four can collectively invest up to ₹6 lakh annually across four separate PPF accounts. Deposits exceeding the ₹1.5 lakh limit do not earn interest and are not eligible for Section 80C deduction.
PPF maturity is calculated using the compound interest formula for annuities. The mathematical representation is:
Where:
The formula assumes deposits are made at the beginning of each year. Interest is calculated monthly but compounded annually at the end of each financial year. This is why contributing early in the financial year maximizes your interest earnings compared to depositing just before March 31st.
Let's understand PPF growth with a practical scenario. Rajesh, a 30-year-old software engineer, opens a PPF account in 2025 with the goal of building a retirement corpus.
Annual Contribution
₹1,50,000
Maximum allowed limit
Interest Rate
7.1% p.a.
Current government rate
Investment Period
15 years
Standard PPF tenure
Start Year
2025
Maturity in 2040
The step-by-step breakdown shows how Rajesh's wealth grows: In Year 1, he deposits ₹1,50,000 and earns approximately ₹5,325 in interest, since interest accrues throughout the year. By Year 5, his accumulated corpus starts generating significant annual interest of over ₹50,000. In the final year (Year 15), his opening balance of around ₹35 lakh generates over ₹2.5 lakh in interest alone.
The power of compounding is evident: 45% of Rajesh's final corpus (₹18.63 lakh) comes purely from interest, not his deposits. This tax-free ₹18.63 lakh interest would have been reduced to around ₹11 lakh after 30% tax in a traditional fixed deposit, demonstrating PPF's superior tax efficiency.
Each investment option serves different financial goals and risk appetites. Here's an objective comparison to help you make informed allocation decisions:
| Feature | PPF | Equity SIP | Bank FD |
|---|---|---|---|
| Risk Level | Zero (Government backed) | High (Market linked) | Very Low (DICGC insured up to ₹5L) |
| Expected Returns | 7-8% guaranteed | 10-15% average (volatile) | 5-7% fixed |
| Tax Benefit | EEE - Fully tax-free | LTCG 10% above ₹1L, STCG 15% | Interest fully taxable |
| Liquidity | Low (Partial withdrawal from Year 7) | High (Redeem anytime) | Medium (Premature penalty) |
| Lock-in Period | 15 years mandatory | None (ELSS has 3 years) | Flexible (7 days to 10 years) |
| Ideal For | Retirement, conservative savers | Wealth creation, young investors | Emergency fund, short-term goals |
The optimal strategy for most investors is diversification: Use PPF for guaranteed long-term corpus (15-20% of savings), equity SIP for wealth multiplication (40-50% for young investors), and FDs for emergency funds and short-term needs (20-30%). Risk appetite and life stage determine exact allocation ratios.
No single scheme is universally "better" than PPF - it depends on your specific financial goals and risk tolerance. However, certain options may deliver superior returns for those willing to accept different trade-offs.
Equity SIP in diversified mutual funds historically delivers 12-15% annualized returns over 15+ years, nearly doubling PPF's 7-8% returns. The trade-off is market volatility and no guaranteed returns. A ₹1.5 lakh annual SIP at 12% grows to approximately ₹62 lakh versus ₹41 lakh in PPF - but with periodic drawdowns and no government guarantee.
National Pension System (NPS) offers market-linked returns with additional ₹50,000 tax deduction under Section 80CCD(1B) beyond the ₹1.5 lakh Section 80C limit. NPS's aggressive equity allocation (up to 75% equity) can generate 10-12% returns, though 60% of the corpus is locked until retirement and 40% must be used to purchase an annuity.
The balanced approach combines PPF's safety with equity's growth potential. Investors under 40 might allocate 30% to PPF for stability, 50% to equity SIP for long-term wealth, and 20% to liquid funds for emergencies. As retirement approaches, gradually shift towards PPF and debt instruments for capital preservation.
Understanding how your PPF balance grows year-over-year helps you verify passbook entries and plan contributions strategically. The accumulation follows a predictable pattern driven by compounding mechanics.
Interest calculation in PPF is based on the lowest balance between the 5th and last day of each month. This is why financial advisors recommend depositing before the 5th of any month - money deposited on the 6th or later won't earn interest for that entire month. Optimal strategy is depositing the full annual amount in April itself to maximize interest accrual.
The compounding formula works incrementally: In Year 1, your principal P earns interest I1 = P × 7.1%. In Year 2, your balance becomes (P + I1 + P) and earns interest I2 on this higher base. By Year 10, the interest earned each year exceeds your annual contribution, demonstrating exponential growth.
To manually verify your PPF balance, multiply your previous year's closing balance by 1.071 (for 7.1% interest), then add the current year's contribution. The result should match your passbook entry within ₹5-10 due to rounding. Any larger discrepancy indicates missed deposits or incorrect interest crediting that requires immediate bank attention.
The 15-year lock-in is mandatory from the date of account opening, not from each deposit. Early closure is permitted only in exceptional circumstances like critical illness or higher education expenses, and attracts a 1% penalty on interest earned. After maturity, you can extend in 5-year blocks with or without further contributions.
Premature withdrawal is allowed from the 7th financial year onwards, limited to 50% of the balance at the end of the 4th year or immediately preceding year, whichever is lower. Only one withdrawal per year is permitted. Loans against PPF balance (up to 25%) are available between the 3rd and 6th year at 1% interest above PPF rate.
PPF interest rates are reviewed quarterly by the Government of India linked to 10-year G-Sec yields. Historical rates have ranged from 12% (2000s) to 7.1% (current). Our calculator uses the rate you input, but actual returns will vary with future government revisions. Conservative planners use 6.5% for projections to account for potential rate cuts.
For the most accurate calculations, always use the current government-notified interest rate and review your assumptions annually. Remember that this calculator provides estimates for planning purposes - actual maturity amounts depend on timing of deposits, rate changes during the tenure, and whether you deposit the maximum ₹1.5 lakh consistently each year.
Understanding historical PPF interest rates is crucial for long-term financial planning. The Public Provident Fund rate has evolved significantly since its inception in 1968, reflecting India's changing economic landscape and monetary policy. These rate changes directly impact the power of compounding—higher rates in earlier decades generated substantial returns, while recent rate cuts require larger principal deposits to achieve similar maturity values. Historical data helps investors set realistic expectations and understand how future rate revisions could affect their 15-year investment horizon.
| Period / Year Range | PPF Interest Rate (%) | Remarks |
|---|---|---|
| 1968–1985 | 4.8% | Initial rate at scheme launch; stable period with moderate returns |
| 1986–2000 | 12.0% | Peak PPF era with highest interest rates; golden period for compounding |
| 2001–2011 | 8.0% | Post-liberalization adjustment; rate reduced to align with market conditions |
| 2012–2015 | 8.7% | Slight increase during inflationary period; brief upward revision |
| 2016–2019 | 7.6%–8.0% | Quarterly revisions introduced; rates became more dynamic |
| 2020–2023 | 7.1% | Pandemic-era rate cuts; historical low for PPF scheme |
| 2024–2026 | 7.1% | Current rate maintained; subject to quarterly government notification |
Note: PPF interest rates are subject to quarterly revision by the Ministry of Finance, Government of India. The rates shown above represent historical benchmarks and may not reflect mid-year adjustments. Always verify the current rate from official government sources before making investment decisions.
This PPF Calculator provides illustrative projections based on the input parameters you specify. The maturity amounts, interest calculations, and year-wise breakdowns shown are mathematical estimates and should be used for preliminary financial planning only.
Actual PPF returns depend on the interest rate declared quarterly by the Ministry of Finance, Government of India. Historical rate changes mean your actual maturity amount may differ significantly from calculator projections if rates increase or decrease during your investment tenure.
The calculator assumes consistent annual deposits of the specified amount throughout the tenure. Real-world variations in contribution amounts, deposit timing (before vs after 5th of month), missed years, premature withdrawals, or loans taken will alter actual outcomes.
This tool is for informational purposes and does not constitute financial, tax, or investment advice. For personalized guidance on PPF investments, tax implications under Section 80C, withdrawal strategies, or suitability within your broader financial portfolio, please consult a certified financial planner or tax advisor.
This PPF Calculator uses the officially defined Public Provident Fund interest calculation method based on annual compounding rules set by the Government of India.
Interest rates and calculations are based on publicly available government notifications and standard financial formulas. Rates may change over time, and users should verify current rates before making financial decisions.
This tool is intended for general informational and educational purposes only. It does not constitute financial advice or investment recommendations.
All calculations are performed locally in your browser. No personal or financial data is stored, tracked, or transmitted to any server.
The minimum annual deposit is ₹500 and the maximum is ₹1,50,000 per financial year. You can deposit in one lump sum or up to 12 installments per year.
As of December 2025, the PPF interest rate is 7.1% per annum, compounded annually. The rate is reviewed quarterly by the Government of India and subject to revision based on prevailing economic conditions.
Yes, you can extend your PPF account in blocks of 5 years indefinitely after the initial 15-year maturity period, with or without making further contributions. This allows you to continue earning tax-free interest.
Partial withdrawals are allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th year or the preceding year, whichever is lower. Only one withdrawal is allowed per financial year.
No, PPF offers EEE (Exempt-Exempt-Exempt) status. The deposits qualify for tax deduction under Section 80C up to ₹1.5 lakh, the interest earned is completely tax-free with no TDS, and the maturity amount is also tax-free. This makes PPF one of the most tax-efficient investment options in India.