PPF Calculator
Calculate your Public Provident Fund returns
Investment Details
Time Period
PPF Returns
What is PPF (Public Provident Fund)?
A Public Provident Fund (PPF) account is a savings account that offers Indian residents a tax-free and flexible way to save money. Not only contributions made to a PPF account are tax-deductible, but under Section 80C of the Income Tax Act, 1961, the earnings on the account are also tax-free. The account can be used to save for retirement, children's education, or other expenses.
Contribution Limit
Contributions to a PPF account must be made in multiples of ₹500 and can be as low as ₹500 per year. The maximum contribution that can be made in a year is ₹1,50,000. The minimum amount that must be maintained in the account is ₹500.
Tenure
The maturity period for a PPF account is 15 years, but the account can be extended for another five years after the maturity date. Partial withdrawals from a PPF account are allowed, but only after the account has been active for at least five years.
How to open a PPF account?
Want to open a PPF account? Get the following documents ready:
- Identity proof
- Address proof
- Photograph
- Application form
Why opt for PPF?
- Safe and secure investment in government securities
- High returns (around 8% annualized return in recent years)
- Tax-deductible investment up to ₹1.5 lakhs per year
- Flexible withdrawal options
- Easy account transferability between banks
How is PPF calculated?
PPF interest is calculated using the formula: Interest = Principal × Rate × Time / 100. The interest is calculated yearly and credited at the end of each financial year. For example, a deposit of ₹1 lakh at 7% interest would earn ₹7,000 in interest after one year.
How to use our PPF calculator?
Simply enter your investment amount, interest rate, and investment duration in our calculator above. The calculator will show you the maturity value and help you plan your PPF investments effectively. It's a useful tool for estimating returns and making informed investment decisions.
Why PPF Remains Relevant
Despite offering lower returns than equity, PPF remains a cornerstone of Indian financial planning due to its EEE tax status, sovereign guarantee, and zero market risk. For conservative investors or as the debt component of a portfolio, PPF provides certainty that few other instruments can match.
Maximising PPF Returns
Invest before the 5th of April each year to earn interest for 12 full months. If investing monthly, deposit before the 5th of each month. Consider extending the PPF account in 5-year blocks after maturity if you do not need the funds, as the tax-free compounding continues.
Frequently Asked Questions
What is the current PPF interest rate?
The PPF interest rate for Q1 FY 2025-26 is 7.1% per annum, compounded annually. The rate is reviewed quarterly by the Government of India but has remained at 7.1% since October 2020.
What is the PPF lock-in period?
PPF has a 15-year lock-in from the date of account opening. Partial withdrawal is allowed from the 7th financial year onwards (up to 50% of the balance at the end of the 4th year). The account can be extended in blocks of 5 years after maturity.
Is PPF completely tax-free?
Yes. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. The investment qualifies for Section 80C deduction (up to Rs 1.5 lakh), the interest earned is tax-free, and the maturity amount is entirely tax-free. This makes PPF one of the most tax-efficient instruments in India.
What is the maximum PPF investment per year?
The maximum annual contribution to PPF is Rs 1.5 lakh. The minimum is Rs 500. You can invest in a lump sum or in up to 12 instalments per year. Deposits must be made before the 5th of each month to earn interest for that month.
Can NRIs open a PPF account?
NRIs cannot open new PPF accounts. However, PPF accounts opened before becoming an NRI can be continued until maturity (15 years) but cannot be extended. The interest rate for NRI-held PPF accounts may be revised to the Post Office savings rate.