Calculate PPF maturity amount & returns
PPF stands for Public Provident Fund. It's a government-backed savings scheme designed by India to help citizens build long-term wealth safely and securely. Think of it as your personal piggy bank that the government guarantees and encourages you to use.
When you open a PPF account, you commit to saving for 15 years. During those 15 years, every rupee you deposit earns interest at an attractive rate set by the government. The interest compounds annually, meaning your money grows faster over time.
Who can open a PPF account? Almost anyone can: salaried employees, self-employed professionals, business owners, parents opening accounts for children, homemakers, and even minors (with a guardian). You just need to be an Indian resident.
The minimum annual deposit is just ₹500, and the maximum is ₹1.5 lakh. You can deposit any amount in between. The government sets the interest rate quarterly, and it's currently 7.1% per annum on all new deposits.
PPF stands out from other investment options for several solid reasons. Here's what makes it special:
The interest you earn is completely tax-free. Your ₹50,000 investment doesn't just grow, it grows without the tax department taking a cut.
Your money is backed by the Indian government. This isn't a private bank promising returns. It's the government itself. Your money is absolutely safe.
Your annual PPF contribution (up to ₹1.5 lakh) qualifies for a Section 80C tax deduction under the Income Tax Act. This means you pay less income tax every year.
Interest compounds annually. Year 1's interest earns interest in Year 2, which earns interest in Year 3, and so on. This creates a snowball effect that builds real wealth.
Need cash? You can withdraw 50% after year 7, or take a loan against your balance in years 3 through 6. The account isn't completely locked away.
Unlike stock market investments, PPF doesn't fluctuate based on market conditions. You know exactly what rate you'll earn when you invest.
Our PPF calculator is simple to use but powerful in what it shows you. Here's exactly what happens when you use it:
Type in how much you plan to invest every year. This can be anywhere from ₹500 to ₹1.5 lakh. The calculator accepts any amount.
The current PPF rate is pre-filled at 7.1%. If the government changes the rate (which happens quarterly), you can update this number. You can also use this to see scenarios with different rates.
The standard PPF lock-in is 15 years. But you can extend in 5-year blocks after that. Enter how many years you plan to stay invested.
Hit the "Calculate PPF" button and you'll instantly see three key numbers.
Here's a real-world example. If you invest ₹50,000 every year for 15 years at 7.1%, here's how your money grows:
| Year | Annual Investment | Interest Earned | Balance |
|---|---|---|---|
| 1 | ₹50,000 | ₹1,778 | ₹51,778 |
| 5 | ₹2,50,000 | ₹27,847 | ₹2,77,847 |
| 10 | ₹5,00,000 | ₹95,642 | ₹5,95,642 |
| 15 | ₹7,50,000 | ₹3,17,258 | ₹10,67,258 |
Look at that final number. You invested ₹7.5 lakh and it grew to over ₹10.67 lakh. That's ₹3.17 lakh in pure interest earnings, completely tax-free. Your money more than grew by 42% without you taking any risk.
PPF is incredibly flexible. It works for different types of people in different situations:
Get the Section 80C tax deduction to reduce your annual tax bill. Especially powerful if you're in the highest tax bracket.
Build a retirement nest egg while getting tax benefits. PPF is perfect for freelancers and business owners.
Open a PPF in your child's name and build a college fund or wedding corpus. By the time they're adults, the amount will be substantial.
If you hate stock market volatility and prefer guaranteed returns, PPF is your answer. You know exactly what you're getting.
Anyone who can commit 15 years and wants compound interest magic. The longer you stay, the more powerful the results.
You don't need a special situation. If you want a safe place to park money that grows automatically, PPF is perfect.
PPF has rules, but they're designed to encourage long-term saving while giving you flexibility. Here's what you must know:
Your initial investment is locked for 15 years. You can't withdraw everything before then. But this is actually a blessing because it forces discipline.
Starting from year 7, you can withdraw up to 50% of the balance of the previous year or 50% of the balance of 4 years before, whichever is lower. This gives you liquidity options.
You can take a loan against your PPF balance starting from the 3rd financial year up to the 6th year. The loan amount is limited to 50% of your balance.
You must invest at least ₹500 every financial year. If you miss a year, you're fined ₹50. You can backdate deposits.
After 15 years, you can extend your account in 5-year blocks indefinitely. You don't need to stick with the original 15 years.
You can only have one PPF account in your name. You can also have separate accounts for each child (as guardian), but each person gets one.
How does PPF stack up against other popular investment options? Here's a comparison:
| Feature | PPF | Fixed Deposit | Mutual Fund | NPS |
|---|---|---|---|---|
| Returns (Current) | 7.1% | 5-6% | 9-12% | 8-10% |
| Risk Level | Very Low | Very Low | High | Medium |
| Tax on Returns | 0% (Tax-Free) | As per Slab | 10-20% | As per Slab |
| Lock-In Period | 15 Years | As Chosen | None | 60 years old |
| 80C Deduction | Yes (₹1.5L) | No | No | Yes (₹2L) |
| Flexibility | Moderate | Moderate | High | Low |
The bottom line: PPF beats fixed deposits on returns and tax benefits. It's safer than mutual funds. It's better for long-term wealth than stock picking. If you want guaranteed, tax-free growth without market risk, PPF is the clear winner.
No, you can only have one PPF account in your own name under Indian tax rules. However, you can have separate accounts as a guardian for your children. So as a parent, you could open four PPF accounts: one for yourself and one each for your three kids. Each account is independent with its own balance and timeline.
If you miss your annual deposit, your account won't close. However, you'll face a penalty of ₹50 per missed year. You can backdate your deposit up to the end of the financial year and avoid the penalty. For example, if you miss the 2024 deposit, you can still pay it anytime before March 31, 2025, and you won't be penalized. The interest still compounds normally on your existing balance.
Complete withdrawal before 15 years is not allowed unless you use the maturity option. However, from year 7 onwards, you can make partial withdrawals up to 50% of your balance. Additionally, in years 3 through 6, you can take a loan against your PPF balance without withdrawing. This gives you access to cash when needed while keeping most of your money invested and growing.
No, the PPF interest rate is not fixed forever. The government reviews and sets the rate quarterly (every 3 months). Your existing balance continues to earn interest at the rate set when you made that deposit. For example, if you deposited ₹50,000 when the rate was 7.1%, that amount earns 7.1%. Any new deposit in a quarter when the rate changes earns the new rate. The calculator lets you experiment with different rates to see how changes affect your final amount.
No, NRIs (Non-Resident Indians) cannot open a new PPF account. However, if you opened a PPF account while you were an Indian resident and then became an NRI, you can continue operating the same account. You can keep making deposits and earning interest. But once you regain resident status, you can open new PPF accounts if needed. This is important for Indians working abroad to remember.
After your initial 15 years are up, you have the option to extend your PPF account in 5-year blocks. You can extend once, twice, three times, or as many times as you want. When you extend, you can either continue depositing (if depositing in extension period) or just keep your balance growing with interest. The interest rate remains the same as what the government sets for that quarter. Many investors keep their PPF running beyond 15 years for continued tax-free growth.
Use our calculator to see how your money can grow. Then visit your nearest bank to open your PPF account today.
Browse All Calculators