How to use the PPF Calculator
- Enter your yearly deposit.
- Keep the current rate or try a different one — the rate is reset every quarter.
- Choose 15 years, or longer if you plan to extend the account in 5-year blocks.
Formula
Closing balance = (Opening balance + Deposit) × (1 + rate)
How PPF interest works
PPF interest is calculated monthly on the lowest balance between the 5th and the last day of each month, and credited once a year at the end of the financial year. That's why depositing by 5 April earns interest for the whole year. This calculator assumes you do.
| Year | Deposit | Interest | Closing balance |
|---|---|---|---|
| 1 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 2 | ₹1,50,000 | ₹22,056 | ₹3,32,706 |
Maturity values at the current rate
| Yearly deposit | Period | Deposited | Maturity |
|---|---|---|---|
| ₹1,00,000 | 15 years | ₹15,00,000 | ₹27,12,139 |
| ₹1,50,000 | 15 years | ₹22,50,000 | ₹40,68,209 |
| ₹1,50,000 | 20 years | ₹30,00,000 | ₹66,58,288 |
Extending by five years adds about ₹26 lakh in the last example — the effect of compounding on a large balance.
Key PPF rules
- Deposit at least ₹500 and at most ₹1,50,000 in each financial year.
- The account matures after 15 full financial years and can be extended in blocks of 5 years, with or without fresh deposits.
- Partial withdrawals and loans are allowed after a few years, within limits.
- Interest and the maturity amount are tax-free. The deduction for deposits is available only under the old tax regime.
Worked example
₹1,50,000 a year for 15 years at 7.1%
- Deposited = ₹22,50,000
- Each year's balance plus deposit grows by 7.1%
Maturity ≈ ₹40,68,209 (interest ≈ ₹18,18,209)
Important notes
- The rate can change every quarter, so real maturity values will differ from a constant-rate projection.
Frequently asked questions
What is the current PPF interest rate?
7.1% a year for October–December 2026, compounded yearly. The government reviews it every quarter.
Can I deposit more than ₹1.5 lakh in PPF?
No. ₹1.5 lakh in a financial year is the maximum across your own account and any accounts you open for minors.
Is PPF maturity tax-free?
Yes. PPF interest and the maturity amount are tax-free.
When is the best time to deposit?
By 5 April each year, so the deposit earns interest for the whole year. Monthly deposits should be made by the 5th of the month.
Sources and review
Last reviewed on by the BizToolsIndia editorial team. Official references:
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