PPF Calculator
Plan your 15-year PPF investment with tax benefits
PPF Details
Min: ₹500 | Max: ₹1,50,000
PPF can be extended in blocks of 5 years
PPF Benefits
PPF Growth Over 15 Years
Year-wise PPF Growth
PPF Milestones
Year 7 - Partial Withdrawal
Year 15 - Maturity
Total Tax Saved
PPF Summary
Amount Breakdown
Enter PPF details to see breakdown
Key Insights
What is PPF (Public Provident Fund)?
The Public Provident Fund (PPF) is a long-term, government-backed savings scheme in India. It offers a combination of guaranteed returns, tax benefits, and safety — making it one of the most popular choices for retirement and wealth building.
PPF accounts can be opened at banks or post offices, have a lock-in period of 15 years, and the interest rate is announced quarterly by the Government of India. Both the interest earned and the maturity amount are tax-free.
How Does PPF Work? (Example)
- You invest a fixed amount every year — anywhere between ₹500 and ₹1.5 lakh.
- The government declares an interest rate every quarter (currently around 7%+).
- Interest is calculated monthly on the lowest balance between the 5th and end of the month, but credited annually.
- At maturity (15 years), you get the total deposits + accumulated interest — all tax-free.
Example: Investing ₹1.5 lakh every year for 15 years at 7.1% p.a. can grow to over ₹40 lakh, with the entire amount tax-free on withdrawal.
PPF Interest Calculation (Formula)
PPF works on compound interest (compounded annually), but with monthly interest calculation. The maturity amount formula is:
FV = P × [ ( (1 + r)^n – 1 ) / r ]
Where: P = annual deposit, r = annual interest rate (decimal), n = number of years.
However, in practice, the calculation is slightly more complex due to monthly interest computation. Our FinSarthi PPF Calculator replicates the official method for accurate results.
Key Features of PPF
- Tenure: 15 years lock-in; can extend in 5-year blocks.
- Min/Max deposit: ₹500 minimum, ₹1.5 lakh maximum per financial year.
- Flexible deposits: Lump sum or in up to 12 installments per year.
- Safety: 100% government-backed — risk-free.
- Tax benefits: EEE (Exempt-Exempt-Exempt) — investment, interest, and maturity are all tax-free under Section 80C.
When is the Best Time to Invest in PPF?
- Interest is calculated monthly on the lowest balance between the 5th and month-end.
- To maximize interest, deposit before the 5th of the month (ideally in April for yearly lump sum).
- Example: If you invest ₹1.5 lakh in April instead of splitting across months, you earn interest for the full amount for all 12 months.
PPF vs Other Investments
| Feature | PPF | FD | Equity MF (via SIP) |
|---|---|---|---|
| Safety | 100% Govt-backed | Bank-backed (with DICGC cover) | Market risk |
| Returns | Fixed by Govt (~7% p.a.) | Fixed (~5–8% p.a.) | Market-linked (~10–15% p.a.) |
| Lock-in | 15 years | As chosen | Flexible (but long-term advised) |
| Tax | EEE — fully tax-free | Interest taxable | Gains taxable (with exemptions) |
Withdrawals & Loan Facility
- Partial withdrawals: Allowed from year 7 onwards, once a year.
- Loan: Available from year 3 to 6, up to 25% of the balance at the end of the 2nd year before loan application.
- Extension: After 15 years, can extend in 5-year blocks with or without further contributions.
About the FinSarthi PPF Calculator (Features & How to Use)
Our FinSarthi PPF Calculator helps you plan contributions to maximize returns while complying with PPF rules.
Key Features
- Accurate monthly interest calculation: Matches the official method.
- Yearly & monthly deposit options: See impact of lump sum vs installment strategy.
- Full schedule view: Year-by-year breakdown of deposits, interest, and total balance.
- Goal planning: Input target amount and see required yearly deposit.
- Extension mode: Calculate benefits of extending beyond 15 years.
- Tax benefits reminder: Highlights 80C limit usage.
- Export & share: Download PDF/CSV schedule.
How to Use
- Enter your annual deposit (₹500–₹1.5 lakh).
- Enter the current interest rate (Govt-announced).
- Select tenure (15 years default; extend if needed).
- Choose deposit mode: lump sum or monthly.
- Click “Calculate” to see maturity amount, interest earned, and yearly breakdown.
PPF Maturity Example
- Annual deposit: ₹1,50,000
- Tenure: 15 years
- Rate: 7.1% p.a.
- Total deposited: ₹22,50,000
- Maturity amount ≈ ₹40,68,000 (₹18,18,000 interest, all tax-free)
Benefits of PPF (with Examples)
- Safe & risk-free: Government-backed — perfect for conservative investors.
- Tax-free returns: No tax on deposits, interest, or maturity — e.g., ₹40 lakh maturity is fully yours.
- Loan & withdrawal options: Maintain liquidity during the lock-in.
- Retirement planning: Extend in 5-year blocks to keep earning safe returns post-15 years.
FAQs on PPF
1) Can I have more than one PPF account?
No. One account per person is allowed (minor + guardian allowed).
2) Can NRIs invest in PPF?
No. NRIs cannot open a PPF account; existing accounts can continue till maturity without extension.
3) Is there any penalty for missing a deposit?
Yes, ₹50 penalty per year + minimum ₹500 deposit to reactivate.
4) Can I change my deposit amount every year?
Yes, any amount from ₹500 to ₹1.5 lakh per year, in lump sum or installments.
5) How often is the PPF interest rate changed?
Quarterly, by the Ministry of Finance.
6) Is PPF better than FD?
For long-term, PPF offers tax-free returns and safety. FD offers flexibility but interest is taxable.
7) Can I withdraw before 15 years?
Partial withdrawals allowed from year 7; full withdrawal only at maturity.
8) Can I extend PPF without adding money?
Yes, you can extend for 5-year blocks without further contributions — existing balance keeps earning interest.
9) What happens if I deposit more than ₹1.5 lakh in a year?
The excess earns no interest and is returned without benefits.
10) Is the interest credited monthly?
No, it’s calculated monthly but credited annually at year-end.
Final Thoughts – Use the FinSarthi PPF Calculator
PPF is a powerful blend of safety, decent returns, and tax benefits. Use the FinSarthi PPF Calculator to plan contributions, decide between lump sum and installments, and see the impact of early deposits. Start early, stay consistent, and watch your savings grow tax-free.