PPF Calculator — Maturity at Official Interest Rate
PPF maturity at the official rate — 15 to 30 year projections.
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The Official 7.1% Rate and How Often It's Reviewed
PPF currently pays 7.1% per annum, a rate that has held unchanged since April 2020 even though the Finance Ministry technically reviews all small-savings rates every quarter. This calculator's rate is verified against the official notification, and because the projection compounds annually on that rate, the result reflects the scheme's actual sovereign-guaranteed return rather than a rounded estimate.
Why the Deposit Timing Inside Each Year Matters
PPF interest is computed monthly on the lowest balance held between the 5th and the last day of that month, then credited once a year on March 31. A deposit made after the 5th of any month earns nothing for that month, which is why the calculator models the optimal, and most common, disciplined pattern: a full deposit at the start of the financial year, before April 5, so every rupee compounds for all twelve months rather than eleven or fewer.
The ₹1.5 Lakh Annual Limit This Calculator Assumes
Contributions are capped at ₹1.5 lakh per person per financial year, with a ₹500 minimum required to keep the account active, and the calculator's default scenario runs at this ceiling since it is both the most common real-world pattern and the figure that also maximizes the Section 80C deduction available under the old tax regime. Interest and the eventual maturity amount stay fully tax-free under both regimes regardless of which one a depositor files under.
What is the Public Provident Fund and how does it grow?
The Public Provident Fund (PPF) is a Government of India small-savings scheme offering sovereign-guaranteed, completely tax-free compounding over a 15-year term. The current rate is 7.1% per annum — unchanged since April 2020 and reviewed by the Finance Ministry every quarter. Interest is calculated monthly on the lowest balance between the 5th and the last day of each month, and credited once a year on March 31. This calculator models the standard optimal pattern: a deposit at the start of each financial year (before April 5), which is exactly how disciplined PPF investors maximise interest, making annual compounding an accurate projection of the real account.
Why the 5th of April matters, and the ₹1.5 lakh limit
Because interest is computed on the month's lowest balance, money deposited after the 5th earns nothing for that month. Investing your full annual contribution before April 5 means every rupee compounds for all twelve months of the financial year — over 15 years, this timing difference alone is worth tens of thousands of rupees versus depositing each March. The annual limit is ₹1.5 lakh per person (minimum ₹500 to keep the account active), one account per individual, with an additional account allowed as guardian of a minor. Deposits qualify for Section 80C deduction under the old tax regime only, but the interest and maturity are tax-free under both regimes.
The 15-year maturity — and why extensions are where PPF gets powerful
At maturity you can withdraw everything tax-free, or extend the account in 5-year blocks indefinitely, with or without fresh contributions. Extensions are where compounding turns dramatic: ₹1.5 lakh a year at 7.1% grows to roughly ₹40 lakh in 15 years, but crosses ₹1 crore by year 30 — the toggle above shows your own numbers at 15, 20, 25, and 30 years. Liquidity exists before maturity too: loans against the balance in years 3–6, partial withdrawals from year 7, and premature closure after 5 years for serious illness or higher education at a 1% rate penalty. For market-linked retirement saving alongside PPF, compare with our NPS calculator.
Frequently asked questions
What is the current PPF interest rate?
7.1% per annum for the July–September 2026 quarter (Q2 FY 2026-27), unchanged since April 2020. The Finance Ministry reviews small-savings rates every quarter; this calculator's rate is verified against the official notification.
How is PPF interest calculated?
Interest is computed monthly on the lowest balance between the 5th and the last day of each month, and credited annually on March 31. Depositing before the 5th of the month — ideally before April 5 each year — maximises interest. This calculator assumes start-of-year deposits.
Is PPF maturity tax-free?
Yes — PPF has EEE status. Contributions up to ₹1.5 lakh qualify for Section 80C deduction (old regime only), and both the annual interest and the full maturity amount are completely tax-free under both regimes.
Can I extend my PPF account after 15 years?
Yes, in blocks of 5 years, indefinitely — with or without fresh contributions. Extension with contributions keeps the full compounding engine running, which is why the 20, 25, and 30-year options above grow so dramatically.
Can I withdraw from PPF before maturity?
Partial withdrawals are allowed from the 7th year (up to 50% of the balance at the end of the 4th preceding year). Loans against PPF are available from years 3–6. Premature closure is permitted after 5 years only for specific reasons like serious illness or higher education, with a 1% rate penalty.