About the PPF calculator
The Public Provident Fund (PPF) is a government savings scheme with a 15-year term, available at post offices and authorised banks. The interest rate is set by the government every quarter and interest is compounded once a year.
How the PPF calculator works
F = P × [(1 + i)^n − 1] ÷ i × (1 + i)
- F
- Maturity value
- P
- Yearly deposit
- i
- Annual rate ÷ 100
- n
- Years
Each deposit is treated as made at the start of the financial year, so it earns a full year of interest. Interest is actually worked out on the lowest balance between the 5th and the end of each month, which is why deposits made by the 5th earn the most.
The rate is held constant for the whole period; in practice it can change every quarter.
Worked example
- Annual deposit
- ₹1,50,000
- Assumed annual rate
- 7.1%
- Time period
- 15 years
Example inputs
- Estimated maturity value
- ₹40,68,209.22
- Total contributed
- ₹22,50,000
- Growth / interest
- ₹18,18,209.22
Calculated result
Why use a PPF calculator?
- See what regular PPF deposits could add up to by maturity.
- Compare the effect of depositing the yearly maximum with a smaller amount.
- Plan an extension beyond 15 years.
PPF calculator FAQs
How much can I deposit in PPF?
At least ₹500 and at most ₹1.5 lakh in a financial year, in one or more instalments. Check India Post for the current rules.
Is PPF tax-free?
Deposits can qualify for a deduction under the old tax regime, and the interest and maturity amount are exempt from tax. The deduction is not available in the new regime.
Can I extend PPF after 15 years?
Yes, in blocks of five years, with or without further deposits, by applying within the time the rules allow.
Can I withdraw before maturity?
Partial withdrawals are allowed after a few years and premature closure only in specific cases, such as serious illness or higher education, under the scheme rules.
Why is my passbook interest different?
Because interest is calculated monthly on the lowest balance and the rate can change each quarter. The calculator uses one rate and start-of-year deposits.