PPF Calculator
Estimate your Public Provident Fund maturity, tax-free interest, and Section 80C savings at the current 7.1% rate.
Calculate PPF Returns
What is PPF?
The Public Provident Fund (PPF) is a long-term, government-backed small savings scheme introduced in 1968. It is one of the safest tax-saving debt instruments available to Indian residents, offering 7.1% p.a. for FY 2025-26 with sovereign guarantee.
PPF accounts can be opened at any post office or authorised bank. Contributions for the first 15 years build a corpus that grows tax-free, and the account can be extended in 5-year blocks indefinitely. Both the interest earned and the maturity amount are entirely exempt from income tax under Section 10(11) — a rare EEE (Exempt-Exempt-Exempt) instrument.
It is ideal for salaried professionals, self-employed individuals, and retirement-focused savers looking for guaranteed, inflation-hedged returns without market risk.
Key Features at a Glance
- Interest rate: 7.1% p.a. (compounded annually, FY 2025-26).
- Tenure: 15 years, extendable in 5-year blocks.
- Min deposit: ₹500/year. Max: ₹1,50,000/year.
- Tax status: EEE — Section 80C deduction, tax-free interest, tax-free maturity.
- Loans: Available from year 3 to year 6, up to 25% of the second-preceding-year balance.
- Partial withdrawal: Allowed from the 7th year (up to 50% of 4th-prior-year balance).
- Eligibility: Resident individuals only; one account per person.
Tax Benefits of PPF
PPF stands out because of its triple-exempt (EEE) tax treatment:
- Deposits: Contributions up to ₹1.5 lakh per year qualify for deduction under Section 80C of the Income Tax Act.
- Interest: The annual interest credited is fully exempt under Section 10(11).
- Maturity: The entire maturity proceeds — principal plus interest — are tax-free.
- PPF is one of the few investments that retains its 80C benefit even after a 30-year horizon.
How the Calculation Works
PPF uses the future value of an annuity-due formula: contributions are assumed at the beginning of each financial year and earn interest for the full year. Interest is compounded annually at 7.1%.
Formula: A = P × [((1+r)n − 1) / r] × (1+r)
Where A = maturity amount, P = annual contribution, r = interest rate (0.071), n = tenure in years.
Worked example: Investing ₹1,50,000 every year for 15 years at 7.1% gives a maturity of approximately ₹40.7 lakh on a total investment of ₹22.5 lakh — a tax-free gain of ~₹18.2 lakh.