Government Backed · Tax-Free

PPF Calculator

Calculate your Public Provident Fund maturity value, year-by-year balance, and total tax savings. EEE status — every rupee invested, every rupee earned, and every rupee you withdraw is tax-free.

📚 Understand This Calculator

What is PPF? The government's guaranteed tax-free savings scheme

PPF (Public Provident Fund) is a government-backed savings scheme that gives you three tax benefits in one: your investment qualifies for 80C deduction (saving you income tax now), the interest you earn is completely tax-free, and when you withdraw at maturity, that entire amount is tax-free too. This triple exemption is called EEE status — and no other investment in India offers all three.

🇮🇳 Real-Life Example

Meenakshi is in the 30% tax bracket. She invests ₹1,50,000 in PPF every year for 15 years.

💸 Tax saved every year on 80C: 30% × ₹1.5L + 4% cess = ₹46,800/year

💰 Actual out-of-pocket cost: ₹1,03,200/year (not ₹1.5L — the government refunds ₹46,800)

📊 At 7.1% for 15 years: Maturity value = ₹40.7 lakh (total invested: ₹22.5L, interest earned: ₹18.2L — entirely tax-free)

Her effective return on what she actually paid (₹1,03,200/year) works out to over 12% CAGR — from a government-guaranteed scheme.

💡 The Key Insight

PPF shines most for people in the 30% tax bracket. The 80C deduction returns almost 31% of your investment on day one (as reduced taxes). This makes the effective return far higher than the nominal 7.1%. For people in lower tax brackets or using the new tax regime (which doesn't allow 80C), PPF's advantage shrinks significantly.

⚠️ Common Mistake

Investing PPF at the end of the financial year (February-March). PPF interest is calculated on the minimum balance between the 5th and last day of each month. If you invest in March, you only get interest for 1 month that year. Invest before the 5th of April (beginning of the financial year) to earn interest for all 12 months.

🏛️ PPF Investment Details
Min ₹500 · Max ₹1,50,000 per year
Current rate: 7.1% p.a. (compounded annually)
Min 15 years · Extendable in 5-year blocks
🏛️

Enter investment details

See your tax-free PPF maturity value

Year-by-Year PPF Balance

Frequently Asked Questions

What is the current PPF interest rate?
The current PPF interest rate is 7.1% per annum, compounded annually. This rate is set by the Government of India and reviewed quarterly. It has remained at 7.1% since April 2020. PPF interest is calculated on the minimum balance between the 5th and last day of each month.
What is the PPF lock-in and withdrawal policy?
PPF has a 15-year lock-in from account opening. After 15 years, extend in 5-year blocks. Partial withdrawals (up to 50% of balance at end of 4th preceding year) are allowed from Year 7. Premature closure is allowed after 5 years only for specific reasons like serious illness or higher education — with a 1% interest penalty.
Is PPF better than ELSS for 80C tax saving?
PPF gives guaranteed 7.1% returns with EEE tax status. ELSS gives higher expected returns (12-14%) with market risk and only 3-year lock-in. ELSS maturity is taxed as LTCG (12.5% above ₹1.25L). For risk-averse investors or those nearing retirement, PPF is better. For long-term wealth creation, ELSS typically wins — especially for investors with a 10+ year horizon.
Can NRIs invest in PPF?
NRIs cannot open a new PPF account. However, if you became an NRI after opening a PPF account as a resident, you can continue the account until maturity (15 years) but cannot extend it beyond 15 years. At maturity, the amount can be repatriated to your NRE/NRO account.

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