PPF Calculator
Calculate your Public Provident Fund maturity amount.
See how annual deposits grow at 7.1% compounded interest over 15 years.
The Public Provident Fund (PPF) is a long-term, government-backed savings scheme in India offering tax-free returns and Section 80C tax deductions. It has a fixed 15-year lock-in period with optional 5-year extensions.
Formula: Maturity Value = P × [((1 + r)^n − 1) ÷ r] × (1 + r)
This is the future value of an annuity due formula (payments at the start of each period).
What each variable means:
- P — annual contribution (minimum ₹500, maximum ₹1,50,000 per year)
- r — annual interest rate (set quarterly by the Government of India; has ranged from 7.1% to 12% historically)
- n — number of years (minimum 15)
Interest calculation rule: Interest is calculated monthly but credited annually to your PPF account. The interest is computed on the lowest balance between the 5th and the last day of each month — so always deposit before the 5th of the month to maximize returns.
Worked example: Annual contribution: ₹1,50,000 (maximum allowed) Interest rate: 7.1% (current rate as of 2024) Tenure: 15 years
Maturity Value = 1,50,000 × [((1.071)^15 − 1) ÷ 0.071] × 1.071 = 1,50,000 × [(2.8509 − 1) ÷ 0.071] × 1.071 = 1,50,000 × [26.069] × 1.071 = 1,50,000 × 27.918 = ₹41,87,700 (approx.)
Total invested = 15 × ₹1,50,000 = ₹22,50,000 Total interest earned = ₹41,87,700 − ₹22,50,000 = ₹19,37,700 — 100% tax-free
Tax advantages: PPF follows the EEE (Exempt-Exempt-Exempt) model:
- Contributions are deductible under Section 80C (up to ₹1.5 lakh)
- Interest earned is tax-free
- Maturity amount is tax-free
This makes PPF one of the most tax-efficient investment vehicles available in India.