Estimate your Public Provident Fund maturity amount and interest.
The PPF is a long-term savings scheme backed by the Government of India. It runs for 15 years, pays a rate reviewed quarterly by the Ministry of Finance, and carries an EEE tax status — contributions are deductible, interest accrues tax-free, and the maturity amount is tax-free. That combination is what makes it competitive despite a headline rate that looks unremarkable next to equity returns.
This calculator compounds your annual contribution over the term you choose so you can see the maturity value and how much of it is interest rather than your own deposits.
| Feature | Rule |
|---|---|
| Minimum deposit | 500 per financial year |
| Maximum deposit | 150,000 per financial year |
| Term | 15 financial years, extendable in blocks of 5 |
| Interest compounding | Annually, credited on 31 March |
| Rate | Set quarterly by the government; historically 7-8% |
| Tax status | EEE — deduction under 80C, tax-free interest, tax-free maturity |
| Accounts per person | One (a second account is irregular and earns no interest) |
Depositing the full 150,000 each year for 15 years at 7.1%:
For a taxpayer in the 30% bracket, earning that interest tax-free is equivalent to roughly 10.1% pre-tax from a fully taxable instrument. That is the real argument for PPF, and it is why comparing its 7.1% directly against a bank fixed deposit's 7.5% is misleading.
This is the single most valuable thing to know about operating a PPF account. Interest is calculated on the lowest balance between the 5th and the last day of each month. A deposit made on the 6th earns nothing for that entire month.
The practical consequence is that a lump sum deposited on 1 April, at the start of the financial year, earns a full twelve months of interest, while the same amount deposited on 31 March earns almost none. Over a 15-year term, consistently depositing in early April rather than late March is worth well over 100,000 on maximum contributions. If you contribute monthly, do it before the 5th every month.
Missing the 500 annual minimum makes the account dormant. Reviving it costs a 50 penalty plus the 500 minimum for each missed year, and while dormant it cannot be used as loan security.
PPF suits the stable, guaranteed portion of a long-term portfolio. Its strengths are a sovereign guarantee, tax-free returns and complete protection from market volatility. Its weaknesses are a 15-year lock-in, a contribution ceiling that limits how much of your saving it can absorb, and a rate that is reset quarterly rather than fixed for the term — so the figure this calculator uses is an assumption, not a promise.
Because the rate has trended downward over the past decade, it is worth running the calculation at a rate a percentage point below today's to see how sensitive your plan is. Over 15 years the difference between 7.1% and 6.1% on maximum contributions is roughly 300,000.
Before the 5th of the month, and ideally as a lump sum on 1 April. Interest is calculated on the lowest balance between the 5th and the month end, so a deposit on the 6th earns nothing for that month. Depositing at the start of the financial year rather than the end gains a full year of interest on every contribution.
No. PPF has EEE status — the contribution qualifies for deduction under Section 80C, the interest accrues tax-free, and the maturity amount is tax-free. This is what makes a 7.1% PPF return comparable to about 10.1% from a taxable deposit for someone in the 30% bracket.
Partial withdrawal is allowed from the 7th financial year, capped at 50% of the balance at the end of the fourth preceding year, once per year. Full premature closure is permitted only after 5 years for specific reasons such as serious illness or higher education, and carries a 1% interest penalty.
You can withdraw the whole balance, or extend in 5-year blocks. Extension can be with or without fresh contributions; extending without contributions still earns interest and allows one withdrawal per year, which many people prefer to moving the money.
No. The government revises the PPF rate every quarter, so a 15-year projection at a single rate is an estimate. It is worth re-running the figure a percentage point lower to see how much your plan depends on the rate holding.