Calculator
PPF Calculator
The Public Provident Fund (PPF) is a government-backed, 15-year savings scheme that is one of the few truly tax-free options in India — your deposits, the interest, and the maturity amount are all exempt (EEE). You can invest up to ₹1.5 lakh a year, the rate is set by the government each quarter, and the lock-in builds discipline. This calculator shows what your PPF will be worth at maturity assuming a steady yearly deposit, separating what you put in from the interest earned. Use it to plan a long-term, risk-free corpus for retirement or a child’s future.
You can invest up to ₹1.5 lakh per financial year.
Set by the government and revised every quarter. Currently 7.1%.
The lock-in is 15 years; you can extend in 5-year blocks.
Deposits vs interest earned over time
- Invested
- Interest
Assumes one deposit at the start of each financial year and a constant rate; the actual PPF rate is revised quarterly by the government. PPF is EEE — deposits qualify under Section 80C, and both the interest and maturity are tax-free. The annual cap is ₹1.5 lakh and the lock-in is 15 years.
What your result means
- PPF is EEE — your deposit, the interest, and the maturity are all tax-free — which makes its ~7.1% effectively far higher than a taxable FD at the same rate.
- The 15-year lock-in is a feature, not a bug: it is sovereign-backed, debt-style money you cannot panic-sell, ideal for the safe core of a long goal.
- Deposit before the 5th of the month — interest is calculated on the lowest balance between the 5th and month-end.
How to use this calculator
- Enter how much you can deposit each financial year, up to the ₹1.5 lakh cap.
- Enter the current PPF rate (7.1% as of now); remember it changes quarterly.
- Set the tenure — start at the 15-year minimum and extend in 5-year blocks if you want.
- Read the maturity value, which is entirely tax-free.
- Compare total invested against interest to see how much the government rate adds over time.
The formula
Maturity = D × [((1 + r)ⁿ − 1) ÷ r] × (1 + r), where D = yearly deposit, r = annual rate (as a decimal), and n = number of years. Total invested = D × n. Interest = Maturity − Total invested.
Worked example
Depositing the full ₹1,50,000 every year at 7.1% for the 15-year term: Total invested = ₹22,50,000. Maturity ≈ ₹40,68,000, so roughly ₹18,18,000 is interest — and because PPF is EEE, you keep all of it tax-free. Extending the account by one more 5-year block (to 20 years) pushes the corpus past ₹66 lakh, showing how the back-loaded compounding rewards patience.
When to use it
- Building a guaranteed, tax-free retirement corpus alongside equity investments.
- Saving for a child’s higher education or marriage with zero market risk.
- Using the full ₹1.5 lakh deposit to maximise your Section 80C deduction.
- Anchoring the debt portion of your asset allocation with a safe, EEE instrument.