PPF Calculator (Public Provident Fund)
Calculate the exact maturity value of your PPF investment at the standard 7.1% p.a. compounded yearly.
Max allowed investment is ₹1,50,000 per financial year.
PPF matures in 15 years, extendable in blocks of 5 years.
Returns Projection
What is the Public Provident Fund (PPF)?
The Public Provident Fund (PPF) is a popular long-term savings scheme offered by the Government of India. Introduced in 1968, the objective of the PPF scheme applies to mobilizing small savings as investments along with offering reasonable returns paired with income tax benefits.
Because it is backed by the government, PPF is considered one of the safest financial instruments for Indian residents. It guarantees capital protection alongside compounding, risk-free returns.
The "EEE" Tax Benefit (Exempt, Exempt, Exempt)
PPF is famous for falling under the elite "EEE" tax category:
- Exempt (Investment): Your annual deposits (up to ₹1.5 Lakhs) are fully tax-deductible under Section 80C of the Income Tax Act (applicable only under the Old Tax Regime).
- Exempt (Accumulation): The interest accrued every year is completely tax-free.
- Exempt (Maturity): The final maturity corpus withdrawn after 15 years is entirely exempt from tax.
Key Rules and Regulations
- Lock-in Period: The standard maturity period of a PPF account is exactly 15 years (calculated from the end of the financial year in which the initial deposit was made).
- Extension: After maturity, you can extend the account indefinitely in blocks of 5 years, with or without making further contributions.
- Deposit Limits: The minimum deposit in a financial year is ₹500, and the maximum is ₹1,50,000. Deposits can be made in a lump sum or in maximum 12 installments.
- Partial Withdrawals: You are allowed to make partial withdrawals starting from the 7th financial year.
- Loans: You can take a loan against your PPF balance between the 3rd and 6th financial year.
How does the PPF Calculator work?
The formula to compute the final maturity amount is: F = P [ ( (1+i)^n - 1 ) / i ]
Where:
- F = Maturity value of the PPF
- P = Annual installments
- n = Number of years (Lock-in period)
- i = Rate of interest (7.1% / 100)
Frequently Asked Questions (FAQs)
Can I close my PPF account before 15 years?
Premature closure is permitted only under specific severe circumstances (such as medical emergencies for life-threatening diseases affecting you, your spouse, or dependent children, or for higher education). This is only allowed after 5 financial years from the end of the year the account was opened, and a 1% interest penalty is applied.
Can NRIs open a PPF account?
Non-Resident Indians (NRIs) cannot open a new PPF account. However, if a resident Indian opens a PPF account and subsequently becomes an NRI, they can continue to hold and operate the account until its 15-year maturity on a non-repatriation basis.
What happens if I forget to deposit the minimum ₹500 in a year?
The account becomes inactive. To revive it, you must pay a penalty of ₹50 for every year defaulted, along with the minimum ₹500 deposit for each missed year.
Disclaimer: This calculator is intended for educational and estimation purposes only. The mathematical model assumes that the annual deposit is made on or before April 5th of every year, ensuring maximum interest. Additionally, the algorithm assumes the interest rate stays constant at 7.1% per annum for the entire projection. Historical data shows that the Government of India actively revises the PPF interest rate quarterly based on bond yields. Therefore, your actual maturity value will fluctuate. This is not financial advice.