๐Ÿ‡ฎ๐Ÿ‡ณ India

PPF Withdrawal Calculator โ€” Partial Withdrawal & Premature Closure

Check your PPF partial withdrawal eligibility, calculate the maximum amount you can withdraw, estimate premature closure payout after the 1% penalty, and compare the cost of withdrawing now versus keeping your full balance until maturity. Updated for FY 2025-26 with PPF rate 7.1%.

The financial year in which your PPF account was opened
โ‚น
Your current PPF account balance (check passbook or online banking)
โ‚น
Balance at the end of the 4th financial year preceding the year of withdrawal
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How to Use This Calculator

Can I Withdraw? tab

Select the financial year in which your PPF account was opened (e.g. FY 2018-19), enter your current PPF balance, and the balance at the end of the 4th financial year preceding the year of withdrawal. The calculator checks whether you have completed 6 FYs (required for partial withdrawal), calculates the maximum amount you can withdraw, and also shows whether the loan facility is available as an alternative.

Premature Closure tab

Enter your current balance, years completed, and select the reason for closure (serious illness, higher education, or NRI status change). The calculator checks eligibility (5+ completed FYs required), then estimates the payout after the 1% penalty. The penalty works by recalculating your entire interest at PPF rate minus 1% (6.1% instead of 7.1%) for the full tenure.

Withdraw vs Stay tab

Enter your current balance, the amount you want to withdraw, years remaining to maturity, and the PPF rate. The calculator compares two scenarios: withdrawing now (getting cash today but losing future compounding) versus keeping the full balance until maturity. It shows the exact opportunity cost in rupees so you can make an informed decision.

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All inputs are encoded in the URL. Click Share to send your exact PPF withdrawal scenario to a family member, financial advisor, or bookmark it for later.

The Formula

PPF withdrawal rules are defined by the PPF Scheme 2019. The key formulas are:

Maximum Partial Withdrawal:
Max Withdrawal = MIN(50% × Balanceend of 4th preceding FY, 50% × Balanceend of preceding FY)

Eligibility:
Partial withdrawal: From 7th FY onwards (after completing 6 full FYs)
Premature closure: After completing 5 FYs
Loan facility: 3rd to 6th FY only

Loan Against PPF:
Max Loan = 25% × Balanceend of 2nd preceding FY
Interest = PPF Rate + 1% = 7.1% + 1% = 8.1% p.a.

Premature Closure Penalty:
Penalty = Interestat 7.1% − Interestat 6.1% (recalculated for entire tenure)
Payout = Current Balance − Penalty

Opportunity Cost (Withdraw vs Stay):
Future Value = Principal × (1 + r)n
Where r = PPF rate (7.1% = 0.071), n = years remaining
Opportunity Cost = FV(full balance) − FV(remaining balance) − Withdrawal Amount

The key insight: PPF compounds at 7.1% annually. Every rupee withdrawn today loses the compounding benefit for the remaining tenure. At 7.1%, money roughly doubles every 10 years.

Example

Sunita — Teacher in Pune, opened PPF in FY 2018-19, needs funds for home renovation

Sunita (35) opened her PPF account in April 2018 (FY 2018-19). Her current balance is โ‚น8,00,000 and the balance at the end of the 4th FY (FY 2021-22) was โ‚น4,20,000. She wants to withdraw some money for a home renovation. Is she eligible, and how much can she take out?

Step 1: Check eligibility

Account openedFY 2018-19
Current FYFY 2025-26
Completed FYs7 (2018-19 through 2024-25)
Eligible for partial withdrawal?Yes (7th FY onwards)

Step 2: Calculate maximum withdrawal

50% of balance at end of 4th FY (โ‚น4,20,000)โ‚น2,10,000
50% of current balance (โ‚น8,00,000)โ‚น4,00,000
Maximum withdrawal (lower of two)โ‚น2,10,000

Step 3: Withdraw vs Stay comparison

Withdrawal amountโ‚น2,10,000
Remaining balanceโ‚น5,90,000
Years to maturity8 years (matures FY 2033-34)
โ‚น5,90,000 at 7.1% for 8 years~โ‚น10,22,000
Full โ‚น8,00,000 at 7.1% for 8 years~โ‚น13,87,000
Opportunity cost of withdrawal~โ‚น1,55,000 in foregone interest

Sunita can withdraw up to โ‚น2,10,000. The withdrawal is completely tax-free (EEE status). If she keeps the โ‚น2.1L in PPF instead, it would grow to about โ‚น3.65L over 8 years. She decides the home renovation is worth the โ‚น1.55L opportunity cost, especially since PPF withdrawal is tax-free unlike breaking an FD.

FAQ

You can make a partial withdrawal from the 7th financial year onwards (i.e., after completing 6 full FYs from the date of account opening). For example, if you opened your PPF account in FY 2018-19, you become eligible for partial withdrawal from FY 2024-25. Only one partial withdrawal is allowed per financial year. Before the 7th FY, you can take a loan against your PPF (from the 3rd to 6th FY) at PPF rate + 1% (currently 8.1%), up to 25% of the balance at the end of the 2nd preceding FY. Full withdrawal is only at maturity (15 years) or through premature closure (after 5 FYs, with penalty).
The maximum partial withdrawal is the lower of two amounts: (a) 50% of the balance at the end of the 4th financial year preceding the year of withdrawal, or (b) 50% of the balance at the end of the immediately preceding financial year. For example, if withdrawing in FY 2025-26: take 50% of the balance at end of FY 2021-22 (4th preceding year) and 50% of balance at end of FY 2024-25 (preceding year) โ€” whichever is lower is your maximum. This rule ensures you cannot withdraw more than half your historical or current balance.
Yes, premature closure is allowed after completing 5 financial years, but only for specific reasons: (1) serious illness of the account holder, spouse, dependent children, or parents; (2) higher education of the account holder or children; (3) change of residency status to NRI. The penalty is 1% reduction in the interest rate for the entire tenure โ€” your accumulated interest is recalculated at 6.1% instead of 7.1% (or whatever the prevailing rate was), and the difference is deducted from your balance. This can be a significant amount for long-held accounts.
No. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status, which is the most favourable tax treatment in India. This means: (1) your annual contributions up to โ‚น1,50,000 are exempt under Section 80C; (2) the interest earned every year is exempt from tax; (3) the maturity amount or any partial withdrawal is completely tax-free. No TDS is deducted on PPF withdrawals. This applies to both regular partial withdrawals and premature closure payouts. The EEE benefit makes PPF one of the most tax-efficient investment instruments in India.
The PPF loan facility is available from the 3rd financial year to the 6th financial year of the account. You can borrow up to 25% of the balance at the end of the 2nd financial year preceding the year of the loan. The interest rate is PPF rate + 1% (currently 8.1%). The loan must be repaid within 36 months from the first day of the month following the month in which the loan is sanctioned. You apply using Form D at your PPF bank/post office. Once the 7th FY starts, the loan facility is no longer available โ€” but partial withdrawal becomes available instead, which is generally better since you do not pay interest on a withdrawal.

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