How to use it
- Enter the amount you plan to deposit every financial year (₹500 to ₹1,50,000).
- Check the interest rate. It is set by the Government every quarter, so update it to the current rate.
- Choose 15 years, or add 5-year extension blocks and say whether you’ll keep depositing during them.
- Read the maturity value, total deposits and interest earned. Tap “Show yearly breakdown” for every year’s balance.
How PPF interest works
PPF interest is calculated every month on the lowest balance between the 5th and the last day of the month, and it is added to your account once a year, at the end of the financial year. So a deposit made on or before 5 April earns interest for all twelve months, while one made later in the year earns less.
This calculator assumes you deposit before 5 April every year and that the rate stays the same, which makes the maturity value:
FV = P × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)
where P is the yearly deposit, r the interest rate ÷ 100 and n the number of years. A month-by-month check using the actual PPF rule gives the same result.
Worked example
₹1,50,000 every year for 15 years at 7.1%:
- (1.071)¹⁵ ≈ 2.7980
- FV = 1,50,000 × [(2.7980 − 1) ÷ 0.071] × 1.071 ≈ ₹40,68,209
- You deposit ₹22,50,000, so the interest earned is about ₹18,18,209.
Maturity at 7.1% for different deposits
| Yearly deposit | Total deposited | After 15 years |
|---|---|---|
| ₹50,000 | ₹7,50,000 | ₹13,56,070 |
| ₹1,00,000 | ₹15,00,000 | ₹27,12,139 |
| ₹1,50,000 | ₹22,50,000 | ₹40,68,209 |
These figures assume 7.1% for the whole period. The real rate is revised every quarter, so treat them as estimates.
Extending your PPF after 15 years
When the account matures you can extend it in blocks of 5 years, with or without fresh deposits. Continuing ₹1,50,000 a year for one more block takes the example above to about ₹66,58,288 after 20 years; without new deposits the balance keeps earning interest and reaches about ₹57,32,587.
Good to know
- The yearly deposit limits (₹500 minimum, ₹1,50,000 maximum) are as per the current scheme rules.
- Under current tax rules, PPF interest and the maturity amount are tax-free, and deposits can be claimed under Section 80C in the old tax regime. Tax rules change, so check the latest position.
- Partial withdrawals and loans are allowed only after certain years, as set out in the scheme rules.
Want to compare with other options? Try the FD calculator, the SIP calculator for market-linked investing, or the compound interest calculator.