Home / Finance / PPF Calculator

PPF Calculator

Calculate Public Provident Fund maturity amount and returns

Maturity Amount
₹40,68,209
Total Investment ₹22,50,000
Total Interest Earned ₹18,18,209

What is PPF (Public Provident Fund)?

The Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India, offering guaranteed returns with complete tax benefits. Launched in 1968, PPF has become one of the most popular investment options for Indian citizens seeking safe, tax-free returns.

PPF combines the benefits of tax savings under Section 80C, tax-free interest, and tax-free maturity proceeds, making it an EEE (Exempt-Exempt-Exempt) investment. With a 15-year lock-in period that can be extended in blocks of 5 years, PPF is ideal for long-term wealth creation and retirement planning.

How to Use the PPF Calculator

  1. Enter Yearly Investment: Input the amount you plan to invest annually (₹500 to ₹1,50,000)
  2. Set Investment Period: Choose your investment tenure (minimum 15 years, extendable)
  3. Check Interest Rate: The calculator uses the current PPF rate (updated quarterly by the government)
  4. View Results: See your maturity amount, total investment, and interest earned instantly

Understanding the PPF Formula

PPF returns are calculated using the future value of an annuity formula:

Where:

PPF Investment Rules and Limits

Contribution Limits

The minimum annual investment in PPF is ₹500, while the maximum is ₹1,50,000 per financial year. You can make deposits in lump sum or up to 12 installments per year. Exceeding the ₹1.5 lakh limit does not earn interest on the excess amount.

Lock-in Period

PPF has a mandatory 15-year lock-in period 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, with or without making fresh contributions.

Withdrawal Rules

Partial withdrawals are allowed from the 7th year onwards, up to 50% of the balance at the end of the 4th preceding year. Premature closure is permitted after 5 years only in specific cases like serious illness or higher education, with a 1% interest penalty.

Tax Benefits of PPF

PPF offers triple tax benefits (EEE status):

PPF vs Other Investment Options

PPF vs Fixed Deposit

While FDs offer liquidity, PPF provides better post-tax returns due to tax-free interest. PPF is ideal for long-term goals, while FDs suit short-term needs.

PPF vs National Savings Certificate (NSC)

Both offer Section 80C benefits, but PPF interest is tax-free while NSC interest is taxable. PPF has a longer lock-in (15 years vs 5 years for NSC).

PPF vs Mutual Fund SIP

PPF offers guaranteed returns with zero risk, while SIPs can provide higher returns but with market risk. A balanced portfolio often includes both.

Related Calculators

Disclaimer: This calculator provides estimates for informational purposes only. Actual results may vary based on your specific circumstances, lender terms, and market conditions. Always consult with a qualified financial advisor before making investment or borrowing decisions. QuickCalculators is not responsible for any financial decisions made based on these calculations.

📚 Recommended Financial Resources

Enhance your financial knowledge with these top-rated finance books and resources:

Browse Finance Books on Amazon →

Disclosure: As an Amazon Associate, we earn from qualifying purchases made through this link at no additional cost to you.

Frequently Asked Questions

What is PPF?
PPF (Public Provident Fund) is a long-term savings scheme backed by the Government of India. It offers tax benefits under Section 80C and guaranteed returns with a 15-year lock-in period.
What is the current PPF interest rate?
The PPF interest rate is set by the government quarterly. As of 2025, the rate is 7.1% per annum, compounded annually. This rate is reviewed every quarter.
Can I withdraw money from PPF before maturity?
Partial withdrawals are allowed from the 7th year onwards, up to 50% of the balance. Premature closure is permitted after 5 years under specific conditions with a penalty.
What is the maximum PPF investment limit?
The maximum investment in PPF is ₹1,50,000 per financial year. The minimum is ₹500 per year. You can make deposits in lump sum or installments.
Is PPF better than FD?
PPF offers tax-free returns and tax deduction benefits, making it more tax-efficient than FD. However, PPF has a 15-year lock-in while FDs offer more liquidity. Choose based on your financial goals.