PPF Calculator — How to Calculate PPF Returns & Maturity Amount
For risk-averse Indian investors seeking guaranteed sovereign returns, the Public Provident Fund (PPF) remains the gold standard of fixed-income instruments. With guaranteed government backing, zero default risk, and Triple Tax-Exempt (EEE) status, PPF is a core pillar of retirement planning.
Why the 5th of Every Month Matters
By law, PPF interest is calculated monthly on the lowest balance between the 5th and the last day of each calendar month.
If you deposit ₹1,50,000 on April 4th, you earn interest on the full amount for all 12 months. If you deposit on April 6th, you lose an entire month of interest! Over 15 years, depositing on or before the 5th generates an extra ₹40,000 to ₹60,000 in interest.
PPF 15-Year Wealth Accumulation Schedule (₹1.5 Lakh/Year)
Investing the maximum allowable ₹1,50,000 per financial year in PPF at the prevailing 7.1% interest rate transforms modest annual savings into a substantial, 100% tax-free wealth milestone.
Because the interest is compounded annually and credited on March 31st, the power of compounding accelerates exponentially in the second decade of your account.
| Milestone | Total Deposited | Interest Accrued | Total Account Balance |
|---|---|---|---|
| Year 5 | ₹7,50,000 | ₹1,47,156 | ₹8,97,156 |
| Year 10 | ₹15,00,000 | ₹6,41,610 | ₹21,41,610 |
| Year 15 (Maturity) | ₹22,50,000 | ₹18,18,209 | ₹40,68,209 |
| Year 20 (Extended) | ₹30,00,000 | ₹36,58,070 | ₹66,58,070 |
Partial Withdrawals, Loans & 5-Year Extensions Explained
1. Loan Facility: From the 3rd to 6th financial year, you can take a loan up to 25% of the balance at the end of the 2nd preceding financial year, repayable at just 1% above the prevailing PPF rate.
2. Partial Withdrawal: From the 7th financial year onwards, you can withdraw up to 50% of the balance once every financial year for medical or higher education needs completely tax-free.
3. 5-Year Block Extensions: At maturity, you can extend your account indefinitely in 5-year blocks. You may continue with fresh contributions or leave the balance untouched to earn compounding tax-free interest.
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Frequently Asked Questions (10 Answers)
Q1: What is the current PPF interest rate in 2026?+
The Government of India currently offers 7.1% per annum on PPF accounts, compounded annually on March 31st.
Q2: What is the Golden Rule of PPF deposit (the 5th of the month rule)?+
Interest in PPF is calculated on the minimum balance between the close of the 5th day and the end of the month. Therefore, always deposit your PPF installment on or before the 5th of the month to earn interest for that full month.
Q3: What is the minimum and maximum deposit in PPF?+
The minimum mandatory deposit is ₹500 per financial year, and the maximum deposit eligible for interest and Section 80C deduction is ₹1,50,000 per financial year.
Q4: What is Triple Tax-Exempt (EEE) status?+
EEE means: 1) Investment is tax-deductible under Section 80C, 2) Annual interest earned is 100% tax-free, and 3) The entire maturity withdrawal is completely exempt from income tax.
Q5: What is the lock-in period for PPF?+
The tenure of a PPF account is 15 financial years from the end of the year in which the account was opened.
Q6: Can PPF be extended after 15 years?+
Yes. PPF can be extended indefinitely in blocks of 5 years, with or without continuing fresh contributions.
Q7: Can I take a loan against my PPF account?+
Yes. You can take a loan from the 3rd to the 6th financial year at 1% interest above the prevailing PPF rate.
Q8: Can NRI open a new PPF account?+
No. Non-Resident Indians (NRIs) cannot open a new PPF account, though existing accounts opened before obtaining NRI status can continue until 15-year maturity.
Q9: Is PPF attached in court decrees for debts?+
No. Under the Public Provident Fund Act, PPF balances cannot be attached by any court decree for unpaid debts or liabilities.
Q10: How much will ₹1.5 Lakh yearly in PPF yield after 15 years?+
Depositing ₹1.5 Lakh annually at 7.1% interest yields total deposits of ₹22.5 Lakh, interest of ₹18.18 Lakh, and a total tax-free maturity corpus of ~₹40.68 Lakh.
Written by Mr. Chandan Yadav
Software Engineer & Founder, Digitac Solution • Saidpur, Ghazipur, Uttar Pradesh, India
Chandan is passionate about building accessible, fast, and transparent computational tools for students, homeowners, and investors across India. All calculations on this platform adhere strictly to official Indian regulatory frameworks including the Reserve Bank of India, Income Tax Department, and Postal Savings norms.