PPF Calculator

Public Provident Fund returns

Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026

How to use: Enter how much you'll put in each year, the rate, and for how long.

Example₹1.5 lakh/year at 7.1% for 15 years → about ₹40.7 lakh

How much will you invest each year?

₹

PPF allows ₹500 to ₹1,50,000 per year

At what interest rate?

Govt-set; currently 7.1% (changes quarterly)

For how many years?

15-year lock-in; extend in 5-year blocks

Maturity value after 15 years

₹40,68,209

You invest

₹22,50,000

Interest earned

₹18,18,209

PPF interest is fully tax-free (EEE).

Growth over time

Value

Popular PPF plans

How it works

PPF compounds annuallyand is one of the few fully tax-free instruments in India (EEE). Each year's deposit earns interest that itself earns interest the next year.

Because the interest is tax-free, PPF's effective return beats a taxable FD at the same headline rate — especially if you're in the 30% slab. The trade-off is the 15-year lock-in.

Tip: deposit before the 5th of the month — PPF interest is calculated on the lowest balance between the 5th and month-end.

Method & sources

Applies yearly compounding at the government-notified PPF rate on each financial year's balance, per the Public Provident Fund Scheme rules (Ministry of Finance). The rate is reset quarterly by the government; maturity and interest are fully tax-free under Section 80C/10(11).

What this doesn't cover

The government can revise the PPF rate every quarter.
Assumes deposits within the annual limit; does not model partial-withdrawal or loan rules.

Frequently asked

How much can I invest in PPF per year?: Between ₹500 and ₹1,50,000 in a financial year, in up to 12 instalments or a lump sum. Deposits above ₹1.5 lakh earn no interest.
Is PPF interest taxable?: No. PPF is EEE — the deposit qualifies for 80C (section 123 of the new Income-tax Act, 2025) deduction, the interest is tax-free, and the maturity is tax-free. That's a big edge over FDs.
What is the PPF lock-in period?: 15 years from the end of the financial year you open it. You can extend in blocks of 5 years, with or without further contributions.
What is the current PPF interest rate?: 7.1% per annum as of FY2026-27. The government revises it every quarter, so update the rate field if it changes.
Can I withdraw early?: Partial withdrawal is allowed from the 7th year. A loan is available between years 3 and 6. Full premature closure is restricted to specific cases (serious illness, higher education).

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