PPF Calculator — Maturity & Interest

How to Use the PPF Calculator

Enter your planned PPF investment to see projections:

• Annual Deposit (₹): The amount you plan to deposit per year. The minimum is ₹500 and the maximum is ₹1,50,000 per financial year. This calculator enforces the ₹1.5 lakh statutory ceiling — any excess is disregarded.
• PPF Interest Rate (%): The current government-declared PPF rate. As of 2026, this is 7.1% per annum, compounded annually. The rate is subject to quarterly revision by the Ministry of Finance — update this field if the rate changes.
• Tenure (years): PPF has a mandatory 15-year lock-in. You can extend in 5-year blocks after maturity. The calculator defaults to 15 years.

The results show your total maturity amount, total deposits made, and total interest earned over the tenure. The year-by-year table below shows how your PPF balance compounds — illustrating the explosive growth in the later years due to annual compounding on an ever-growing base.

PPF interest rate is subject to quarterly revision by the Government of India. This calculator uses the rate you enter. Always verify the current rate before making investment decisions.

PPF Interest Formula — Annual Compounding

PPF uses annual compounding. Interest is calculated each year on the closing balance (previous year's balance + current year's deposit), then added to the balance at the end of the financial year (31st March).

For each year y, the balance grows as:

Balance(y) = (Balance(y−1) + Annual Deposit) × (1 + r)

Where r is the PPF interest rate as a decimal (e.g. 7.1% = 0.071).

Over 15 years with a fixed annual deposit (D) and rate (r), the maturity amount is approximately:

M = D × ((1 + r)^15 − 1) ÷ r × (1 + r)

This is the Future Value of an Annuity Due with annual compounding — each deposit earns interest from the beginning of that year. In practice, deposits made before April 5th earn interest for the full year; deposits after April 5th earn interest only from the following month. Maximise your returns by depositing on April 1st each year.

PPF Maturity Calculation Example

Suppose you deposit the maximum ₹1,50,000 per year for 15 years at the current rate of 7.1%.

• Annual deposit D = ₹1,50,000
• Rate r = 7.1% = 0.071 | Tenure = 15 years
• Total deposited = 1,50,000 × 15 = ₹22,50,000
• Maturity Amount ≈ ₹40,68,209
• Total Interest Earned ≈ ₹18,18,209

Depositing ₹22.5 lakh over 15 years grows to over ₹40.68 lakh — completely tax-free. That's ₹18.18 lakh in interest, all exempt from income tax. By contrast, a bank FD at 7% over the same period would yield similar gross returns but the interest would be fully taxable, leaving significantly less in hand for someone in the 30% tax bracket.

If you extend for another 5 years with the same annual deposit, the maturity value at year 20 would grow to over ₹66 lakh — demonstrating why PPF extension is almost always worthwhile.

Frequently Asked Questions

What is the PPF interest rate in 2026?

The PPF interest rate is declared by the Government of India each quarter. As of 2026, the rate stands at 7.1% per annum, compounded annually — a rate it has held since April 2020. Historically, PPF rates have ranged from 7.1% to 12% since the scheme's inception. The rate is announced along with other small savings scheme rates (NSC, Sukanya Samriddhi, Senior Citizen Savings Scheme) and is reviewed quarterly in March, June, September, and December. Check the India Post or RBI website for the latest rate before investing.

What is the maximum PPF deposit limit?

The maximum deposit into a PPF account in any financial year (April to March) is ₹1,50,000 (₹1.5 lakh). This limit applies per account — if you hold both a self account and a minor child's account, the combined deposits across both accounts cannot exceed ₹1.5 lakh. The minimum annual deposit to keep the account active is ₹500. Deposits above the ₹1.5 lakh ceiling in any year are returned without interest and without 80C benefit.

When is PPF interest calculated and credited?

PPF interest is computed on the minimum balance between the 5th and the last day of each month. This is critical: if you deposit before the 5th of a month, that amount earns interest for the entire month. If you deposit after the 5th, that month's interest is calculated on the balance before your deposit — effectively losing one month of interest on the new deposit. Interest is compounded annually and credited to the account on March 31st. To maximise returns, deposit your annual PPF contribution on April 1st each year (or before April 5th at latest).

Can I extend PPF after 15 years?

Yes. After 15 years, you have three options: (1) Withdraw the full maturity amount and close the account; (2) Extend the account without making further contributions — the existing balance continues earning PPF interest and you can make partial withdrawals annually; (3) Extend with fresh contributions in 5-year blocks — you continue depositing up to ₹1.5 lakh per year and enjoy the same tax benefits. To extend with contributions, submit Form H to your bank or post office before the end of the 16th financial year from opening.

Is PPF interest tax-free?

PPF is one of the very few investment instruments in India that is EEE — Exempt at all three stages. The annual deposit qualifies for deduction under Section 80C of the Income Tax Act (up to ₹1.5 lakh per year). All interest earned during the tenure is completely tax-free. The entire maturity amount (principal + interest) received after 15 years is exempt from income tax, including capital gains tax. This triple exemption makes PPF especially valuable for investors in higher tax brackets (20% and 30%), where the post-tax returns from PPF significantly outperform equivalent taxable instruments.

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