PPF Calculator

Estimate Public Provident Fund maturity value, interest earned, and year-wise tax-saving corpus growth.

Last updated: May 7, 2026

Enter Details

Yearly investment

₹1,50,000 per year is about ₹12,500 per month.

₹

₹500₹1,50,000

Interest rate

Current government-linked PPF rate. Rates may change periodically.

0%15%

Tenure

PPF matures at 15 years and can usually be extended in 5-year blocks.

years

15 years30 years

15YMaturity

20YExtension

25YLong-term

30YMax here

Inflation rate

Used to estimate today's purchasing power of your PPF maturity.

0%12%

Maturity value

Tax-free maturity under current PPF rules

₹40,68,209

Your total investment of ₹22,50,000 may grow by ₹18,18,209 over 15 years at 7.1% annually.

Interest earnedEEE tax status

₹18,18,209

Today's value after 6% inflation

₹16,97,522

Real gain after inflation: -₹5,52,478

Total investment₹22,50,000

Yearly investment₹1,50,000

Monthly equivalent₹12,500

Tenure15 years

Maturity multiple1.81x

Tax-free wealth insight

Your investment grows by ₹18,18,209 over the invested amount because annual compounding keeps increasing the interest base. Nearly 44.7% of maturity comes from interest growth.

Maturity breakdown

Investment 55.3%

Interest 44.7%

Year-wise growth

PPF wealth growth projection

Shows how yearly deposits and annual compounding build your PPF balance over time.

Show inflation-adjusted values

Invested amountAccumulated interest

Interest crosses 1 year contribution in year 5

₹40,68,209

₹30,51,157

₹20,34,105

₹10,17,052

Y5: Compounding starts accelerating

Y10: Interest growth becomes significant

Y15: PPF maturity point

Year 1

Invested: ₹1,50,000

Interest: ₹10,650

Balance: ₹1,60,650

Year 2

Invested: ₹3,00,000

Interest: ₹32,706

Balance: ₹3,32,706

Year 3

Invested: ₹4,50,000

Interest: ₹66,978

Balance: ₹5,16,978

Year 4

Invested: ₹6,00,000

Interest: ₹1,14,334

Balance: ₹7,14,334

Year 5

Invested: ₹7,50,000

Interest: ₹1,75,701

Balance: ₹9,25,701

Year 6

Invested: ₹9,00,000

Interest: ₹2,52,076

Balance: ₹11,52,076

Year 7

Invested: ₹10,50,000

Interest: ₹3,44,524

Balance: ₹13,94,524

Year 8

Invested: ₹12,00,000

Interest: ₹4,54,185

Balance: ₹16,54,185

Year 9

Invested: ₹13,50,000

Interest: ₹5,82,282

Balance: ₹19,32,282

Year 10

Invested: ₹15,00,000

Interest: ₹7,30,124

Balance: ₹22,30,124

Year 11

Invested: ₹16,50,000

Interest: ₹8,99,113

Balance: ₹25,49,113

Year 12

Invested: ₹18,00,000

Interest: ₹10,90,750

Balance: ₹28,90,750

Year 13

Invested: ₹19,50,000

Interest: ₹13,06,643

Balance: ₹32,56,643

Year 14

Invested: ₹21,00,000

Interest: ₹15,48,515

Balance: ₹36,48,515

Year 15

Invested: ₹22,50,000

Interest: ₹18,18,209

Balance: ₹40,68,209

PPF wealth grows slowly in early years, but long-term compounding becomes much stronger later because interest keeps earning additional interest.

Year	Investment	Interest	Balance
1	₹1,50,000	₹10,650	₹1,60,650
2	₹3,00,000	₹32,706	₹3,32,706
3	₹4,50,000	₹66,978	₹5,16,978
4	₹6,00,000	₹1,14,334	₹7,14,334
5	₹7,50,000	₹1,75,701	₹9,25,701
6	₹9,00,000	₹2,52,076	₹11,52,076
7	₹10,50,000	₹3,44,524	₹13,94,524
8	₹12,00,000	₹4,54,185	₹16,54,185
9	₹13,50,000	₹5,82,282	₹19,32,282
10	₹15,00,000	₹7,30,124	₹22,30,124
11	₹16,50,000	₹8,99,113	₹25,49,113
12	₹18,00,000	₹10,90,750	₹28,90,750
13	₹19,50,000	₹13,06,643	₹32,56,643
14	₹21,00,000	₹15,48,515	₹36,48,515
15	₹22,50,000	₹18,18,209	₹40,68,209

Explore more

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PPF Gyan

Basics

PPF Gyan

What is PPF and why it matters

Public Provident Fund (PPF) is a government-backed long-term savings scheme designed to encourage disciplined wealth creation. It combines annual compounding, low risk, and tax benefits, making it one of the most widely used long-term savings options in India.

PPF works best for long-term financial goals such as retirement, children's education, or building a stable tax-efficient corpus. Because contributions continue earning compounded interest every year, long holding periods can significantly improve maturity value.

A PPF account has an initial 15-year maturity period and can usually be extended in blocks of 5 years after maturity. This long duration allows compounding to become much more powerful in later years.

Gyan Insight

PPF's biggest advantage is its EEE tax treatment under current rules. Eligible deposits may qualify for tax deduction, yearly interest is generally tax-free, and maturity proceeds are usually tax-exempt as well.

Formula

PPF Formula and Step-by-Step Calculation Method

PPF interest is calculated using annual compounding. This means the interest earned in one year is added to your PPF balance, and the next year's interest is calculated on the increased amount. Over time, this compounding effect helps your PPF corpus grow faster.

Closing Balance = Opening Balance + Yearly Investment + Interest Earned

Interest Earned = (Opening Balance + Yearly Investment) × Annual PPF Interest Rate

Step 1: Start with the opening balance

The opening balance is the amount already available in your PPF account at the beginning of the year. In the first year, this is usually zero if you are starting a new PPF investment.

Step 2: Add your yearly PPF investment

Next, add the amount you plan to invest during the financial year. For example, if you invest Rs 1,50,000 in a year, this amount is added to the opening balance before calculating the yearly growth.

Step 3: Apply the annual PPF interest rate

The annual PPF interest rate is applied to the total of opening balance and yearly investment. For example, if the total amount is Rs 1,50,000 and the interest rate is 7.1%, the interest for that year will be Rs 10,650.

Step 4: Calculate the closing balance

The closing balance is calculated by adding the opening balance, yearly investment, and interest earned. This closing balance becomes the opening balance for the next year.

Step 5: Repeat the process every year

The same calculation is repeated for every year of the investment period. As the balance grows, the interest amount also increases because interest is calculated on a larger accumulated corpus.

Example

PPF Calculation Example

Let's understand PPF calculation with a real-world example. Suppose you invest Rs 1,50,000 every year in your PPF account for 15 years at an annual interest rate of 7.1%. Since PPF uses annual compounding, every year's closing balance becomes the opening balance for the next year.

Example: Rs 1,50,000 yearly investment for 15 years at 7.1% interest

Formula used: Closing Balance = Opening Balance + Yearly Investment + Interest Earned

Step 1: Calculate the total investment

You invest Rs 1,50,000 every year for 15 years. So, your total invested amount is Rs 1,50,000 × 15 = Rs 22,50,000.

Step 2: Calculate the first year's interest

In the first year, the opening balance is Rs 0. After investing Rs 1,50,000, interest is calculated at 7.1%. So, interest for the first year is Rs 1,50,000 × 7.1% = Rs 10,650.

Step 3: Calculate the first year's closing balance

The first year's closing balance becomes Rs 0 + Rs 1,50,000 + Rs 10,650 = Rs 1,60,650. This amount becomes the opening balance for the second year.

Step 4: Calculate the second year's balance

In the second year, the opening balance is Rs 1,60,650. After adding another Rs 1,50,000 investment, the amount considered for interest is Rs 3,10,650. Interest at 7.1% is Rs 22,056.15, so the closing balance becomes Rs 3,32,706.15.

Step 5: Repeat this calculation for 15 years

The same process continues every year. As your balance grows, the interest amount also increases because interest is calculated on a larger accumulated corpus.

Total investment

Rs 22.5L

Estimated interest

Rs 18.18L

Maturity value

Rs 40.68L

Tips

Practical PPF Tips

PPF is designed for disciplined long-term wealth creation. Small planning decisions such as investment timing, yearly contribution consistency, and account extension can significantly improve your final maturity value over time.

Invest early in the financial year

Investing earlier gives your money more time inside the PPF account and can improve the compounding benefit.

Use PPF for stable tax-saving allocation

PPF can balance market-linked products like ELSS or SIPs because it is government-backed and relatively stable.

Think beyond the first 15 years

If you do not need the money at maturity, extension blocks can keep the tax-free compounding engine running.

Map yearly investment to monthly savings

A Rs 1.5 lakh yearly investment is about Rs 12,500 per month. This makes the goal easier to plan.

Common mistakes

Common PPF Mistakes

PPF is one of the most trusted long-term savings schemes in India, but many investors still make planning mistakes that reduce the full benefit of compounding, liquidity management, or portfolio balance. Understanding these mistakes can help you use PPF more effectively.

Treating PPF as a short-term investment

PPF is designed for long investment horizons. Since the account has a 15-year lock-in, investing money that may be needed soon can create liquidity pressure later.

Ignoring inflation impact

A large maturity amount after 15 or 20 years may look attractive, but inflation reduces future purchasing power. Always compare long-term goals in inflation-adjusted terms.

Comparing PPF directly with equity returns

PPF and equity mutual funds serve different purposes. PPF focuses on capital safety and tax-efficient stability, while equities focus more on higher long-term growth with market risk.

Assuming the interest rate never changes

PPF interest rates are reviewed periodically by the government. Future maturity values may differ if rates increase or decrease over time.

Gyan Alert

Do not choose PPF only by comparing returns with market investments. PPF is mainly valuable for long-term stability, government backing, and tax-free compounding benefits.

Comparison

PPF vs FD vs ELSS

PPF, Fixed Deposits (FDs), and ELSS mutual funds are all popular investment choices, but they serve different financial goals. The right option depends on factors such as risk tolerance, investment duration, taxation, liquidity, and expected returns.

Option	Risk level	Tax treatment	Liquidity	Best fit
PPF	Low	Usually EEE under current rules	Long lock-in with limited withdrawals	Stable long-term tax-free wealth building
FD	Low to moderate	Interest income is generally taxable	Usually more flexible than PPF	Short- to medium-term fixed-income planning
ELSS	Market-linked	Tax-saving with equity taxation rules	3-year lock-in period	Higher-growth tax-saving investments

Gyan Nugget

ELSS has the shortest lock-in period among common tax-saving investments under Section 80C, while PPF generally offers one of the strongest combinations of capital safety and tax efficiency for long-term investors.

PPF FAQ

Public Provident Fund (PPF) is a government-backed long-term savings scheme in India designed to encourage disciplined investing. It offers annual compounding, tax benefits under prevailing rules, and a 15-year lock-in period, making it popular for retirement and long-term wealth building.

This PPF calculator estimates your maturity value by using your yearly investment amount, expected PPF interest rate, and investment tenure. The calculator applies annual compounding and shows how your balance, interest earned, and total corpus may grow over time.

Under current rules, the maximum eligible PPF investment is usually Rs 1.5 lakh in a financial year. Deposits beyond the allowed limit may not receive the same tax benefits or interest treatment.

PPF generally follows the EEE (Exempt-Exempt-Exempt) taxation structure under prevailing Indian tax rules. Eligible contributions, annual interest earned, and maturity proceeds are usually tax-free.

Yes. After the initial 15-year maturity period, a PPF account can usually be extended in blocks of 5 years. This allows investors to continue earning tax-efficient compounded growth if they do not need immediate withdrawals.

Partial withdrawals are usually allowed after a specified number of years under PPF rules, subject to eligibility conditions and withdrawal limits. However, full maturity generally happens after 15 years.

PPF is primarily a long-term tax-saving investment with government backing and tax-free maturity under current rules, while Fixed Deposits generally provide more flexibility but may have taxable interest income.

PPF is considered one of the safer long-term investment options in India because it is backed by the Government of India. It is commonly used for stable and relatively low-risk wealth accumulation.

Missing the minimum required yearly contribution may cause the account to become inactive. However, inactive PPF accounts can usually be revived later by following the applicable rules and paying required penalties or contributions.

PPF is generally suitable for investors looking for long-term tax-efficient savings, capital safety, disciplined investing, and stable compounding. It is often used for retirement planning, children’s education goals, or conservative portfolio allocation.

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