Finance
PPF Calculator
The Public Provident Fund is a 15-year government-backed savings scheme. Enter your yearly deposit and the current rate to see the maturity value and a year-by-year balance.
How to use this calculator
- Enter the amount you plan to deposit each financial year, between ₹500 and ₹1,50,000.
- Enter the current PPF interest rate as notified by the Government.
- Choose the period: the standard 15 years, or longer if you plan to extend the account.
Formula
Balance at year end = (Opening balance + Deposit) × (1 + r)
- r
- annual PPF interest rate as a decimal
- Opening balance
- closing balance of the previous year
- Deposit
- amount paid in during that year, assumed by 5 April
The calculation repeats for each of the 15 years, so interest compounds annually.
Worked example
₹1,50,000 deposited every year for 15 years at 7.1%.
- Year 11,50,000 × 1.071 = ₹1,60,650
- Year 2(1,60,650 + 1,50,000) × 1.071 = ₹3,32,706
- Total deposited1,50,000 × 15 = ₹22,50,000
After 15 years the balance is about ₹40,68,209, of which roughly ₹18,18,209 is interest.
How PPF interest is calculated
Interest is calculated on the lowest balance in the account between the close of the fifth day and the last day of each month, and credited once a year at the end of March. That rule has a practical consequence: a deposit made on or before 5 April earns interest for the full year, while the same deposit made on 20 April earns nothing for that month.
This calculator assumes deposits are made by 5 April each year, which is the most favourable timing.
Lock-in, partial withdrawals and loans
A PPF account matures after 15 full financial years from the end of the year in which it was opened. Before that, limited access is allowed: loans against the balance between the third and sixth years, and partial withdrawals from the seventh year onwards, subject to limits.
At maturity you can withdraw everything, keep the balance earning interest without fresh deposits, or extend in blocks of five years with deposits.
Tax treatment
PPF has an exempt-exempt-exempt status: deposits qualify for deduction under Section 80C in the old tax regime, the interest is not taxed, and the maturity amount is not taxed. This is what makes the headline rate compare well with taxable deposits at similar rates.
Things to keep in mind
- The Government reviews the PPF rate every quarter, so a single rate across 15 years is a simplification.
- The ₹1,50,000 annual limit applies across all PPF accounts you hold, including one opened for a minor child.
- Deposits above the limit are returned without interest.
Frequently asked questions
When should I deposit to earn the most interest?
On or before 5 April of the financial year. Interest each month is based on the lowest balance after the fifth, so an early deposit earns interest for all twelve months.
Can I deposit monthly instead of once a year?
Yes, up to twelve deposits a year are allowed within the ₹1,50,000 limit. Monthly deposits earn slightly less than a single early-April deposit of the same total, because later instalments earn interest for fewer months.
What happens if I miss a year?
The account becomes inactive. It can be revived by paying a small penalty for each missed year along with the minimum deposit of ₹500 for those years.
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