PPF Calculator 2026 — Know Your Maturity Amount
Plan your Public Provident Fund savings. Calculate maturity value, yearly interest earned, and tax deductions under Section 80C — instantly.
PPF Maturity Calculator
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Investment Breakdown
| Year | Opening Balance | Deposit | Interest Earned | Closing Balance |
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Complete Guide to PPF (Public Provident Fund) 2025
The Public Provident Fund (PPF) is one of India’s most popular long-term savings instruments, backed by the Government of India. It offers a unique triple tax exemption — popularly called the EEE (Exempt-Exempt-Exempt) status — making it a cornerstone of every smart Indian’s retirement and wealth creation plan. Whether you are a salaried employee, self-employed professional, or a homemaker, PPF gives you a safe, guaranteed-return vehicle to grow your money over 15 years and beyond.
Introduced in 1968 by the National Savings Institute under the Ministry of Finance, PPF has stood the test of time and multiple economic cycles. Unlike market-linked instruments, the PPF interest rate is set by the Government of India every quarter, providing stability and predictability even during volatile markets.
How Is PPF Interest Calculated?
PPF interest is calculated on the minimum balance between the 5th and the last day of each month. This is a crucial rule many investors overlook. If you deposit money after the 5th of a month, you lose that month’s interest on the deposited amount. To maximise your PPF returns, always deposit before the 5th of April (for lump-sum investments) or before the 5th of every month (for monthly deposits).
PPF vs Other Investment Options — How Does It Compare?
Indian investors have many choices: Fixed Deposits, NSC, NPS, ELSS, and more. Here is how PPF stacks up against the most popular alternatives in 2025:
| Feature | PPF | Fixed Deposit (5yr Tax) | NSC | ELSS |
|---|---|---|---|---|
| Current Return | 7.1% p.a. | 6.5–7.25% p.a. | 7.7% p.a. | 12–15% p.a. (market) |
| Lock-in Period | 15 Years | 5 Years | 5 Years | 3 Years |
| Tax on Returns | Fully Tax-Free | Taxable (as per slab) | Interest Taxable | LTCG (10% above ₹1L) |
| Section 80C | Yes | Yes | Yes | Yes |
| Risk | Zero (Govt Backed) | Zero (DICGC ₹5L) | Zero (Govt Backed) | Market Risk |
| Loan Against | Year 3 to 6 | Yes | Yes | Not Available |
| Partial Withdrawal | From Year 7 | Penalty on Break | Not Allowed | After 3 years |
PPF Withdrawal Rules — What You Must Know
PPF comes with a mandatory 15-year lock-in, but the rules are not as rigid as many believe. Here is a quick summary:
- Loan Against PPF (Year 3–6): You can take a loan of up to 25% of the balance at the end of the 2nd preceding year. The interest rate is just 1% above the PPF rate. Loan must be repaid within 36 months.
- Partial Withdrawal (From Year 7 onwards): You may withdraw up to 50% of the balance at the end of the 4th year preceding the year of withdrawal, or the balance at the end of the preceding year, whichever is lower. Only one withdrawal per financial year is allowed.
- Premature Closure (From Year 6): Allowed only for specific reasons — serious illness of account holder/spouse/dependent children, higher education of children, or change of residential status (becoming NRI). A penalty of 1% on interest rate applies.
- Extension After Maturity: After 15 years, you can extend in 5-year blocks (with or without deposits). You can make one withdrawal per year during extended periods with deposits.
PPF Tax Benefits Under Section 80C
PPF holds the rare EEE status under Indian income tax law, making it one of the most tax-efficient instruments available:
- Exempt on Investment: Deposits up to ₹1,50,000 per year qualify for deduction under Section 80C, saving up to ₹46,800 per year for those in the 30% tax slab.
- Exempt on Accumulation: Interest credited every year to your PPF account is fully exempt from income tax under Section 10(11). It does not count towards your total income.
- Exempt on Maturity: The entire maturity amount (principal + interest) is completely tax-free. No capital gains tax, no TDS, nothing.
Compare this with a 5-year bank FD at 7.25%: for someone in the 30% tax bracket, the post-tax return is only about 5.08%. PPF at 7.1% effectively beats it on an after-tax basis — plus the compounding runs for 15+ years.
5 Pro Tips to Maximise Your PPF Returns
- 🗓️ Deposit before April 5: Always make your annual PPF deposit between April 1–5. The interest is calculated on the minimum balance between the 5th and the last day of the month. A single day’s delay costs you a full month of interest on your deposit.
- 💰 Maximise at ₹1.5 Lakh: The annual investment limit is ₹1,50,000. Investing the maximum amount every year, especially from a young age, dramatically amplifies the corpus through long-term compounding.
- 🔄 Extend beyond 15 years: Don’t close your PPF at maturity. You can extend indefinitely in 5-year blocks. The EEE tax treatment continues, and your large corpus grows exponentially in the extension period.
- 👶 Open for your minor child: You can open a PPF account for your minor child. Contributions count within your overall ₹1.5L limit, but the child’s account starts building a corpus from a very early age for their higher education or marriage.
- 📈 Combine PPF + ELSS: Use PPF for its guaranteed, tax-free returns (debt-like stability), and complement it with ELSS for market-linked growth. A 60:40 or 70:30 allocation gives you the best of both worlds.
Who Should Invest in PPF?
PPF is ideal for conservative to moderate investors who want guaranteed returns with zero risk, especially those in higher tax brackets (20% or 30%) who can maximise the Section 80C benefit. It is also perfect for building a retirement corpus alongside EPF, and for parents saving for a child’s long-term financial goals. Risk-averse investors who want market-independent growth will find PPF’s guaranteed government-backed returns very appealing.