PPF Calculator India — Public Provident Fund 2026

Q: What is the current PPF interest rate?

The current PPF interest rate is 7.1% per annum (Q1 FY 2025-26), compounded annually. The rate is set by the Ministry of Finance and reviewed quarterly. It has remained at 7.1% since Q1 FY 2020-21.

Q: Can I withdraw from PPF before 15 years?

Partial withdrawal is allowed from the 7th financial year onwards (up to 50% of balance). Loan facility is available from year 3 to year 6 at PPF rate + 1%. Premature closure is only allowed after 5 years for specific reasons (serious illness, higher education, NRI status change) with a 1% interest penalty.

Q: What happens after 15 years? Can I extend my PPF?

After 15 years you can withdraw the full amount tax-free, extend without contributions (balance earns interest, one withdrawal per year allowed), or extend with contributions in 5-year blocks (continue depositing up to ₹1,50,000/year with 80C benefits). Submit Form H within 1 year of maturity to extend with contributions.

Calculate your PPF maturity value at 7.1% for FY 2025-26. Compare monthly vs annual deposit strategies, model 5-year extensions, and see your full tax savings under Section 80C. Results in lakhs and crores.

Calculate how much your PPF will grow to at maturity

Annual deposit

₹

Min ₹500, Max ₹1,50,000 per financial year

Tenure

years

Minimum lock-in: 15 years

Interest rate

% p.a.

Current rate: 7.1% (Q1 FY 2025-26). Set quarterly by Ministry of Finance.

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How to Use This Calculator

PPF Maturity tab

Enter your annual deposit (up to ₹1,50,000) and tenure (minimum 15 years). The calculator shows your total deposits, interest earned, maturity value, and Section 80C tax savings. Expand "More options" to adjust the interest rate if you want to model different rate scenarios.

Monthly vs Annual tab

Compare the interest earned when you deposit the same total amount as a lump-sum on April 1 versus monthly instalments. PPF interest is calculated on the minimum balance between the 5th and last day of each month, so depositing early in the year earns more interest. This tab shows the exact difference over your full tenure.

PPF with Extension tab

After the initial 15-year lock-in, PPF can be extended in 5-year blocks. Choose whether to continue making fresh deposits or let the existing balance grow with interest only. See the total value after 20 years and the benefit of extending.

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The Formula

PPF interest is compounded annually. The interest for each year is calculated on the minimum balance between the 5th and last day of each month, then credited on March 31.

PPF Maturity Value (Annual Deposit):

For each year: Balance = Previous Balance + Annual Deposit
Interest = Balance × Rate (7.1%)
Year-End Balance = Balance + Interest

PPF Parameters FY 2025-26:
Interest rate: 7.1% per annum (compounded annually)
Minimum deposit: ₹500/year
Maximum deposit: ₹1,50,000/year
Lock-in period: 15 years
Extension: 5-year blocks after maturity

Monthly Interest Calculation:
Interest is calculated on minimum balance between 5th and last day of each month.
Deposit before 5th → earns interest that month.
Deposit after 5th → earns interest from next month.

Tax Treatment (EEE):
Deposit: Exempt under Section 80C (up to ₹1,50,000)
Interest: Exempt (tax-free)
Maturity: Exempt (tax-free)

The key insight: depositing your full annual amount on April 1 (before the 5th) maximises interest because the entire deposit earns interest for all 12 months. Monthly deposits mean later instalments earn interest for fewer months that financial year.

Example

Priya — IT professional investing ₹1,50,000/year in PPF

Priya is 28, earns ₹12,00,000/year, and deposits the maximum ₹1,50,000 annually in her PPF account on April 1 each year. She is in the 30% tax bracket (old regime).

Step 1: Annual deposit and tax saving

Annual PPF deposit₹1,50,000

Section 80C deduction₹1,50,000

Tax saving (30% + 4% cess)₹46,800/year

Step 2: PPF maturity after 15 years at 7.1%

Total deposited (15 years)₹22,50,000

Total interest earned₹18,18,209

Maturity value₹40,68,209

Priya gets ₹40.68 lakh at maturity — completely tax-free. Her ₹22.50 lakh investment nearly doubled.

Step 3: If she extends for 5 more years

Value at year 15₹40,68,209

Additional deposits (5 years)₹7,50,000

Additional interest (5 years)₹18,74,406

Value at year 20₹66,92,615

With the 5-year extension, Priya's PPF grows to ₹66.93 lakh. The power of compounding on a larger base makes the extension period extremely productive.

FAQ

What is PPF and who should invest in it? ▼

PPF (Public Provident Fund) is a government-backed savings scheme introduced in 1968. It offers guaranteed returns at government-set interest rates with complete tax exemption (EEE status). PPF is ideal for conservative investors who want guaranteed, tax-free returns over a long horizon. It is particularly useful for salaried individuals looking to maximise Section 80C deductions under the old tax regime.

What is the current PPF interest rate? ▼

The current PPF interest rate is 7.1% per annum (Q1 FY 2025-26), compounded annually. The rate is set by the Ministry of Finance and reviewed quarterly. It has remained at 7.1% since Q1 FY 2020-21. The government can revise it each quarter (April, July, October, January), though changes have been infrequent in recent years.

How is PPF interest calculated? ▼

PPF interest is calculated on the minimum balance between the 5th and the last day of each month. This means deposits made before the 5th of a month earn interest for that month, while deposits made after the 5th only earn interest from the next month. Interest is calculated monthly but compounded annually — it is credited to the account on March 31 each year. To maximise interest, deposit your annual contribution as a lump sum before April 5.

Can I withdraw from PPF before 15 years? ▼

Partial withdrawal is allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th preceding year or the end of the immediately preceding year, whichever is lower. Loan facility is available from the 3rd to the 6th financial year at PPF rate + 1%. Premature closure is only allowed after 5 years for specific reasons (serious illness, higher education, change of residency status) with a 1% interest rate penalty.

What happens after 15 years? Can I extend my PPF? ▼

After 15 years, you have three options: (1) Withdraw the full amount tax-free. (2) Extend without contributions — the balance continues earning interest, and you can make one withdrawal per year. (3) Extend with contributions — continue depositing up to ₹1,50,000/year and claiming 80C benefits. Extensions are in 5-year blocks. You must submit Form H within 1 year of maturity to extend with contributions. If you don't apply, it defaults to extension without contributions.

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