How the PPF Calculator Works
Enter the amount you plan to invest each year, the number of years you'll invest for, and the interest rate. The government sets and reviews the PPF rate every quarter, so you'll need to enter it manually rather than have it fetched live.
The calculator assumes your full annual investment is made at the start of each financial year, with interest compounding annually on the balance — a simplified but standard way to project PPF growth.
You'll see your total contributions, total estimated interest, the maturity value, and a year-wise table showing how your balance grows.
Benefits of a PPF Account
- Fully tax-free returns: PPF enjoys EEE (Exempt-Exempt-Exempt) status — your contributions, the interest earned, and the final maturity amount are all tax-exempt under current rules.
- Government-backed safety: since PPF is a sovereign-backed scheme, it carries virtually no default risk, making it one of the safest long-term investment options available.
- Loan and partial withdrawal facility: you can take a loan against your PPF balance from the 3rd year onward, and make partial withdrawals from the 7th year onward, giving you some liquidity despite the long lock-in.
- Protection from attachment: PPF balances are generally protected from attachment under court orders for debt recovery, offering an added layer of security for long-term savings.
- Compounding over a long horizon: the mandatory 15-year tenure, extendable in blocks of 5 years, means your contributions have a long runway to compound, which can meaningfully grow even modest annual investments.
Formula Used
For each year, the balance grows as:
Balance = (Previous Balance + Annual Investment) × (1 + r)- rAnnual PPF interest rate (as a decimal)
- Annual InvestmentAmount invested at the start of each financial year
Example Calculation
A common example is investing the maximum permissible amount for the standard 15-year PPF tenure.
- Annual Investment₹1,50,000
- Investment Period15 years
- Interest Rate7.1% p.a.
- Total Contributions ≈ ₹22,50,000, Maturity Value ≈ ₹40,68,209
Important Assumptions
- PPF rules — including the statutory maximum annual investment (currently ₹1.5 lakh) and the government-notified interest rate — can change over time. The rate used here is whatever you enter, so verify the current rate before relying on this for planning.
- This calculator assumes your full annual contribution is made at the start of each financial year, which is the most favourable timing for interest accrual. Contributing in smaller instalments through the year will earn slightly less interest than shown here.
- PPF has a standard lock-in of 15 years, extendable in blocks of 5 years. Partial withdrawals and loans against the balance, which PPF rules allow from certain years onward, aren't modelled in this calculator.
- PPF maturity proceeds are currently tax-exempt under the EEE (Exempt-Exempt-Exempt) status, but tax rules can change — this calculator doesn't provide tax advice.
Frequently Asked Questions
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