PPF Calculator

PPF Calculator India 2025

Calculate your Public Provident Fund returns with tax benefits, partial withdrawal options, and extension scenarios.

Government Guaranteed

EEE Tax Status

15-Year Lock-in

PPF Investment Details

Annual Investment₹500 - ₹150,000

₹

₹500₹150,000

Monthly equivalent: ₹12,500

Annual Interest RateCurrent: 7.1%

PPF rate is set by Government of India quarterly

Investment TenureMin 15Y

Your Tax Rate

PPF Key Features

• 15-year lock-in period (mandatory)
• EEE tax status (Exempt-Exempt-Exempt)
• Partial withdrawal from 7th year
• Loan facility from 3rd to 6th year
• Government guaranteed returns

PPF Maturity Details

PPF Key Benefits

Government Guaranteed

Backed by Government of India with zero risk to principal

Triple Tax Exemption

Investment, interest, and maturity all are tax-free (EEE)

Competitive Returns

Currently offering 7.1% annual returns with compounding

PPF Calculation Formulas

Understand the mathematical formulas used to calculate PPF maturity amounts and tax benefits.

PPF Maturity Amount

Calculate the maturity amount for PPF using compound interest formula.

Maturity Amount = P × [((1 + r)^n - 1) / r]

Example:

₹1,50,000 annual PPF at 7.1% p.a. for 15 years

1,50,000 × [((1 + 0.071)^15 - 1) / 0.071]

= ₹40,68,209

Variables:

P - Annual contribution amount

r - Annual interest rate (as decimal)

n - Number of years (15 years for PPF)

PPF Tax Benefits

Calculate tax benefits from PPF under Section 80C.

Tax Saved = Annual Contribution × Tax Rate

Example:

₹1,50,000 annual PPF contribution at 30% tax rate

1,50,000 × 0.30

= ₹45,000 tax saved annually

Variables:

Annual Contribution - Yearly PPF investment (max ₹1.5L)

Tax Rate - Applicable income tax rate

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

When to Choose PPF in India

PPF is Ideal For:

Conservative Investors
Those who prioritize capital safety over high returns
Tax Savers
High tax bracket individuals seeking Section 80C benefits
Long-term Planners
Those comfortable with 15-year lock-in for retirement planning
Family Financial Security
Parents planning for children's education or marriage

Consider Alternatives When:

Seeking Higher Returns
Consider ELSS or equity SIPs for potentially higher returns
Need Liquidity
If you might need funds before 15 years, consider liquid funds
Young Investors
Young professionals might benefit more from equity exposure
Inflation Concerns
Fixed returns may not beat inflation in the long run

PPF vs Other Tax-Saving Investments

Aspect	PPF	ELSS	NSC	Tax Saver FD
Lock-in Period	15 years	3 years	5 years	5 years
Expected Returns	7.1% (guaranteed)	10-15% (market-linked)	6.8% (guaranteed)	6-7% (guaranteed)
Risk Level	Zero risk	High (market risk)	Zero risk	Very low risk
Tax on Maturity	Tax-free (EEE)	10% LTCG above ₹1L	Taxable as income	Taxable as income
Best For	Long-term, risk-averse savers	Growth-oriented investors	Conservative, medium-term	Ultra-conservative savers

PPF Tax Implications

Tax Benefits (EEE Status)

Investment: Deduction up to ₹1.5L under Section 80C
Interest: Annual interest is completely tax-free
Maturity: Entire maturity amount is tax-free
Withdrawal: Partial withdrawals are also tax-free

Important Tax Considerations

PPF investment counts towards ₹1.5L limit of Section 80C
No TDS is deducted on PPF interest or maturity
PPF is not subject to wealth tax
Loan against PPF is taxable if not repaid

Quick Decision Guide: PPF vs Alternatives

Your Profile	Choose PPF if you...	Consider ELSS if you...
Age 25-35	Want guaranteed returns for retirement	Can take risk for higher wealth creation
Age 35-45	Need stable returns for children's future	Want to maximize retirement corpus
Age 45+	Prioritize capital safety over growth	Still have 10+ years for retirement

Loan Against PPF

Loan Eligibility & Terms

Availability: From 3rd to 6th year of account
Maximum Amount: 25% of balance at end of 2nd preceding year
Interest Rate: PPF rate + 1% (Currently 8.1%)
Repayment: Must be repaid within 36 months

Important Considerations

Loan amount reduces your PPF balance temporarily
Interest earned on loan amount stops during loan period
If not repaid, loan becomes taxable income
No processing fees or prepayment charges

How to Open PPF Account

Where to Open

• Nationalized Banks (SBI, PNB, BOI, etc.)
• Private Banks (ICICI, HDFC, Axis, etc.)
• Post Offices
• Authorized Private Banks
• Online through bank websites

Required Documents

• PAN Card (Mandatory)
• Aadhaar Card
• Address Proof
• Passport-size photographs
• PPF Account Opening Form
• Initial deposit (Min ₹500)

Eligibility Criteria

• Indian Resident individuals
• Minor children (through guardian)
• One account per person
• Age: No minimum or maximum limit
• NRIs cannot open new accounts
• HUF/Companies not eligible

PPF for Children

Opening: Parents/guardians can open PPF for minor children

Investment Limit: Combined limit of ₹1.5L for parent and child

Maturity: Child gets control after turning 18

Benefits: Early start for long-term wealth creation

PPF Rules & Important Information

Investment Rules

Annual Limit: Minimum ₹500, Maximum ₹1,50,000
Investment Frequency: Can invest multiple times in a year
Missed Investment: Account becomes dormant if no investment for a year
Revival: Dormant accounts can be revived with penalty of ₹50/year

Withdrawal Rules

Lock-in: 15 years mandatory lock-in period
Partial Withdrawal: From 7th year, up to 50% of 4th preceding year balance
Extension: Can extend in 5-year blocks after 15 years
Premature Closure: Only allowed after 5 years with reduced interest

Important Considerations

Multiple Accounts: Only one PPF account allowed per person

Nomination: Nomination facility available and recommended

Transfer: Account can be transferred from one bank/post office to another

Interest Calculation: Interest calculated on lowest balance between 5th and last day of month

PPF Calculator FAQs

Everything you need to know about Public Provident Fund, PPF benefits, and tax-free investment planning

What is PPF (Public Provident Fund)?

PPF is a long-term savings scheme backed by the Government of India with a 15-year lock-in period. It offers tax benefits under Section 80C, tax-free interest, and tax-free maturity amount, making it an EEE (Exempt-Exempt-Exempt) investment.

What is the current PPF interest rate?

The current PPF interest rate is 7.1% per annum (as of FY 2025-26). The rate is reviewed quarterly by the Government of India and is currently compounded annually.

How many times can I invest in PPF in a year?

You can invest in PPF multiple times in a year - monthly, quarterly, or even daily. However, the total annual investment should not exceed ₹1,50,000. Many investors prefer monthly investments to benefit from rupee cost averaging.

What happens if I don't invest in PPF for a year?

If you don't invest at least ₹500 in a financial year, your PPF account becomes dormant. You can revive it by paying a penalty of ₹50 per year of default along with the minimum annual contribution of ₹500 for each year.

Can I withdraw from PPF before 15 years maturity?

Yes, partial withdrawal is allowed from the 7th year onwards, up to 50% of the balance at the end of the 4th preceding year. Premature closure is allowed after 5 years but with reduced interest rate. You can also take a loan from 3rd to 6th year.

Can I extend PPF beyond 15 years?

Yes, after 15 years, you can extend your PPF account in blocks of 5 years indefinitely. During extension, you can either continue investing up to ₹1.5L annually or just let the existing amount grow at the prevailing PPF rate without new investments.

Can I have multiple PPF accounts or open one for my child?

No, you can have only one PPF account per person. However, you can open a PPF account for your minor child through a guardian. The combined investment limit for you and your child is ₹1,50,000 per year across all accounts.

What are the withdrawal terms and conditions?

Partial withdrawal: From 7th year, up to 50% of 4th preceding year balance. Loan: From 3rd-6th year, up to 25% of 2nd preceding year balance at PPF rate + 1%. Premature closure: After 5 years with 1% interest reduction. Full withdrawal: After 15 years without any penalty.

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