PPF Calculator
Public Provident Fund — 100% tax-free returns under EEE status
PPF enjoys EEE tax status — investment, interest, and maturity are all 100% tax-free. Contribution qualifies for Section 80C deduction up to ₹1.5L.
Investment Details
Corpus Composition
Wealth Multiplier
1.81x
Effective Return
80.8%
Maturity Amount (Tax-Free)
₹40.68 L
after 15 years at 7.1% p.a.
Total Invested
₹22.50 L
₹1.50 L × 15 years
Total Interest Earned
₹18.18 L
100% tax-free
PPF Corpus Growth Over Time
Invested principal vs tax-free interest, year by year
Year-wise Growth Table
15 years total| Year | Invested (yr) | Total Invested | Interest Earned | Balance |
|---|---|---|---|---|
| Year 1 | ₹1.50 L | ₹1.50 L | ₹10,650 | ₹1.61 L |
| Year 2 | ₹1.50 L | ₹3.00 L | ₹22,056 | ₹3.33 L |
| Year 3 | ₹1.50 L | ₹4.50 L | ₹34,272 | ₹5.17 L |
| Year 4 | ₹1.50 L | ₹6.00 L | ₹47,355 | ₹7.14 L |
| Year 5 | ₹1.50 L | ₹7.50 L | ₹61,368 | ₹9.26 L |
| Year 6 | ₹1.50 L | ₹9.00 L | ₹76,375 | ₹11.52 L |
| Year 7 | ₹1.50 L | ₹10.50 L | ₹92,447 | ₹13.95 L |
| Year 8 | ₹1.50 L | ₹12.00 L | ₹1.10 L | ₹16.54 L |
| Year 9 | ₹1.50 L | ₹13.50 L | ₹1.28 L | ₹19.32 L |
| Year 10 | ₹1.50 L | ₹15.00 L | ₹1.48 L | ₹22.30 L |
Total Invested
₹1.50 L
Interest Earned
₹10,650
Balance
₹1.61 L
Total Invested
₹3.00 L
Interest Earned
₹22,056
Balance
₹3.33 L
Total Invested
₹4.50 L
Interest Earned
₹34,272
Balance
₹5.17 L
Total Invested
₹6.00 L
Interest Earned
₹47,355
Balance
₹7.14 L
Total Invested
₹7.50 L
Interest Earned
₹61,368
Balance
₹9.26 L
Total Invested
₹9.00 L
Interest Earned
₹76,375
Balance
₹11.52 L
Total Invested
₹10.50 L
Interest Earned
₹92,447
Balance
₹13.95 L
Total Invested
₹12.00 L
Interest Earned
₹1.10 L
Balance
₹16.54 L
Total Invested
₹13.50 L
Interest Earned
₹1.28 L
Balance
₹19.32 L
Total Invested
₹15.00 L
Interest Earned
₹1.48 L
Balance
₹22.30 L
About Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a government-backed long-term savings scheme introduced in 1968. It is one of the most trusted investment instruments in India, combining sovereign safety, guaranteed returns, and unmatched tax efficiency.
The current PPF interest rate is 7.1% per annum, compounded annually. The government reviews the rate quarterly, though it has been stable since April 2020. Interest is calculated on the minimum balance between the 5th and last day of each month — so always deposit before the 5th to maximize your annual interest.
PPF's biggest advantage is its EEE (Exempt-Exempt-Exempt) tax status: contributions up to ₹1.5L qualify for Section 80C deduction, annual interest is entirely tax-free, and the maturity amount is 100% exempt from tax. No other fixed-income product in India offers this combination at scale.
The mandatory lock-in is 15 years, after which the account can be extended indefinitely in 5-year blocks. Partial withdrawals are allowed from the 7th year, and loans against the PPF balance are available from Year 3. PPF is ideal for conservative investors, salaried individuals maximizing 80C deductions, and anyone building a tax-free retirement corpus alongside their EPF.
Frequently Asked Questions
What is the current PPF interest rate in 2026?
The PPF interest rate for Q1 FY 2026-27 (April–June 2026) is 7.1% per annum, compounded annually. The rate is set by the Ministry of Finance and reviewed quarterly, though it has remained unchanged at 7.1% since April 2020. Interest is calculated on the minimum balance between the 5th and last day of each month and credited to the account at the end of the financial year (March 31).
What is the maximum I can invest in PPF per year?
The maximum annual contribution to a PPF account is ₹1,50,000. The minimum is ₹500 per year. You can make up to 12 deposits per financial year in any amount (subject to the annual cap). Deposits made in multiples of ₹50 only are accepted. Excess deposits beyond ₹1.5L are returned without interest.
When does PPF mature and can I extend it?
PPF has a mandatory lock-in of 15 years from the end of the financial year in which the account was opened. After maturity, you can extend the account in blocks of 5 years — indefinitely. You can extend with continued contributions (and earn interest + make withdrawals) or extend without contributions (balance continues earning interest at the prevailing rate). There is no upper limit on extensions.
Is PPF interest truly tax-free?
Yes. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — the gold standard in Indian taxation. The contribution qualifies for deduction under Section 80C (up to ₹1.5L). The interest earned each year is completely tax-free (no TDS, no declaration needed). The maturity amount is entirely tax-free. No other fixed-income investment in India currently offers full EEE status at this scale.
Can I take a loan against PPF or make partial withdrawals?
Yes on both counts. A loan against PPF is available from the 3rd to the 6th year of the account, at just 1% above the PPF interest rate. Partial withdrawals are allowed from the 7th financial year onwards — up to 50% of the balance at the end of the 4th year or the preceding year, whichever is lower. Both facilities make PPF more liquid than fixed deposits for long-term savers.