PPF Calculator: Public Provident Fund Maturity & Interest Estimator
The Public Provident Fund (PPF) is India's gold-standard long-term savings instrument backed by an absolute statutory guarantee from the Government of India. Calculate your exact 15-year maturity value, compound interest accumulations, and 5-year block extensions.
Investment Parameters
Govt Rate: 7.1% p.a.Public Provident Fund balances cannot be attached by any decree or order of any court under the Government Savings Promotion Act, offering maximum statutory security.
Tax-free accumulated corpus in Indian numbering: ₹40.7 L.
Verified Mathematical Case Studies
Depositing the maximum permissible limit of ₹1,50,000 annually under Section 80C results in an investment of ₹22,50,000. Over 15 years, compounding yields ₹18,18,209 in completely tax-free interest, accumulating to a final maturity corpus of ₹40,68,209.
Extending the PPF account by one 5-year block with continuous deposits increases the total investment to ₹30,00,000. The interest earned skyrockets to ₹36,58,288 (more than the total principal invested), reaching ₹66,58,288.
How PPF Compounding & Interest Calculation Works
The Public Provident Fund operates under the statutory framework of the Government Savings Promotion General Rules, 2019. While interest is credited to the account once a year on March 31st, it is computed on a monthly basis.
- If you make monthly deposits, ensure funds clear into your account on or before the 5th day of each month.
- If you make a lump-sum annual investment, depositing between April 1st and April 5th earns a full 12 months of compounding interest on that amount.
Understanding the Exemplary EEE Tax Status
PPF is one of the rare sovereign investment instruments in India that belongs to the coveted Exempt-Exempt-Exempt (EEE) category:
- Exempt at Investment: Contributions up to ₹1,50,000 per financial year are eligible for deduction under Section 80C of the Income Tax Act, 1961 (under the Old Tax Regime).
- Exempt at Accumulation: The annual 7.1% interest earned each year is 100% tax-free under Section 10(11). No TDS is ever deducted.
- Exempt at Withdrawal: The entire maturity corpus withdrawn after 15 years is completely exempt from income tax and wealth tax.
Loan and Partial Withdrawal Facilities
While PPF has a statutory 15-year lock-in, liquidity provisions exist to handle emergencies:
- Loan Facility (3rd to 6th FY): You can take a loan against your PPF balance starting from the 3rd financial year up to the 6th financial year, capped at 25% of the balance at the end of the second preceding financial year, at an interest rate of 1% above the prevailing PPF rate.
- Partial Withdrawals (From 7th FY): Starting from the 7th financial year, one partial withdrawal per financial year is permitted, capped at 50% of the balance at the end of the 4th preceding year or preceding year, whichever is lower.
Frequently Asked Questions
What is the current PPF interest rate in India?
The statutory interest rate on Public Provident Fund (PPF) is 7.1% per annum, compounded annually at the end of each financial year (March 31st). Interest rates are notified quarterly by the Ministry of Finance.
What is the 5th-of-the-month rule for PPF deposit?
Under PPF statutory rules, interest is calculated on the minimum balance between the close of the 5th day and the end of the month. If you deposit funds on or before the 5th of a month, you earn interest for that full month; otherwise, that month’s interest is forfeited.
Is PPF completely tax-free under EEE status?
Yes, PPF enjoys sovereign Exemplary Exempt-Exempt-Exempt (EEE) status: the investment qualifies for deduction under Section 80C up to ₹1.5 Lakh, the annual interest earned is 100% tax-free under Section 10(11), and the final maturity amount is completely exempt from income tax.
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Disclaimer: This tool provides computational estimates for educational and informational purposes only. It does not constitute personal financial, tax, or legal advice. Consult a certified financial planner or CA for specific advice.