PPF Calculator 2026

Calculate your PPF maturity amount and interest earned. Enter your annual deposit to see how your money grows over the 15-year tenure at the current 7.1% interest rate. PPF offers EEE tax status — contributions, interest, and maturity are all tax-free.

📖What is PPF?

Public Provident Fund (PPF) is a government-backed savings scheme with a 15-year lock-in period and guaranteed returns. Launched in 1968, it remains one of India's most popular tax-saving instruments. The current interest rate is 7.1% per annum, compounded annually. Any Indian resident can open a PPF account at post offices or designated banks.

PPF's biggest advantage is its EEE (Exempt-Exempt-Exempt) tax status. Your contribution gets 80C deduction (up to ₹1.5 lakh). Interest earned during the 15-year tenure is tax-free. And the maturity amount is also completely tax-free. Very few instruments offer all three exemptions — this makes PPF's effective return significantly higher than its nominal 7.1%.

For someone in the 30% tax bracket, PPF's 7.1% tax-free return is equivalent to approximately 10.2% pre-tax. Compare this with a bank FD at 7% which gives only ~4.9% after tax. PPF delivers more than double the post-tax return of an FD — the difference over 15 years is lakhs of rupees.

📅PPF withdrawal and extension rules

Years 1-6: No withdrawal allowed. You can take a loan against PPF from year 3-6 (25% of balance at end of 2nd preceding year, at PPF rate + 1%).

Year 7 onwards: Partial withdrawal allowed — up to 50% of balance at end of 4th preceding year. One withdrawal per year. No need to give a reason. This is useful for children's education, medical needs, or any other purpose.

Year 15 (maturity): Three options: (a) withdraw everything tax-free, (b) extend 5 years with contributions (continue depositing and earning interest), or (c) extend 5 years without contributions (no deposits, but balance keeps earning 7.1%). You can extend indefinitely in 5-year blocks. Many people extend into retirement for steady tax-free income.

Premature closure: Only allowed after 5 years for medical emergency (self/spouse/children/parents) or higher education. Penalty: 1% reduction from applicable interest rate. Not recommended unless absolutely necessary — the tax-free compounding benefit is too valuable to break.

₹1.5 lakh/year in PPF for 15 years = ₹40.7 lakh maturity. You invested ₹22.5 lakh. Interest earned: ₹18.2 lakh — completely tax-free. Extend for 5 more years without any deposits? Balance grows to ₹57.5 lakh. Free money from compounding.

⚖️PPF vs EPF vs NPS vs ELSS

PPF (7.1%, 15yr lock-in): Best for guaranteed, completely tax-free returns. Zero risk. Self-managed. No employer involvement.

EPF (8.25%, until 58): Higher rate but locked until retirement. Employer co-contributes. Auto-deducted from salary. Not available for self-employed. Better rate than PPF but less flexibility.

NPS (10-12%, until 60): Highest potential returns (market-linked equity). Extra ₹50K deduction under 80CCD(1B). But 40% mandatory annuity at 60 (pension is taxable). Longest lock-in. Best for equity exposure within tax-saving.

ELSS (12-15%, 3yr lock-in): Shortest lock-in among 80C options. Highest return potential (equity mutual funds). But returns are not guaranteed and LTCG above ₹1.25L is taxable at 12.5%. Best for aggressive investors comfortable with market risk.

Recommended mix: EPF (automatic via salary) + PPF ₹50K-1L/year (guaranteed base) + ELSS for remaining 80C room (equity growth) + NPS ₹50K (extra deduction). This gives diversification across guaranteed and market-linked returns.

📚Official source

PPF interest rates are notified quarterly by the Ministry of Finance. Current rates at dea.gov.in. Open PPF at SBI, India Post, or any designated bank.

Last reviewed: April 2026 • Rate: 7.1% (Q1 FY 2026-27). This is for informational purposes only.

💡Smart PPF strategies most people miss

Strategy 1 — Maximize interest with April 4 deposit: If you can invest the full ₹1.5 lakh as lumpsum, deposit it on April 4 (before 5th) to earn interest for all 12 months of the financial year. A ₹1.5L deposit on April 4 earns approximately ₹1,400 more interest per year compared to depositing on March 31 of the same year. Over 15 years, this timing discipline adds ₹35,000-50,000 to your maturity.

Strategy 2 — Use PPF extension for retirement income: After 15 years, extend PPF WITHOUT new contributions. Your ₹40+ lakh corpus continues earning 7.1% tax-free = approximately ₹2.85 lakh/year interest. You can withdraw freely (one withdrawal per year). This creates a tax-free income stream in retirement without touching the principal.

Strategy 3 — Open PPF for your child early: Open a minor PPF account when your child is born. By age 15, the PPF matures. Extend with contributions until the child is 23 — they have a ₹40+ lakh corpus for higher education or career, all earned tax-free. The combined limit (parent + child) is ₹1.5L/year — so plan your own PPF contribution accordingly.

Strategy 4 — PPF as emergency backup: After year 7, PPF allows partial withdrawal (50% of year-4 balance). This makes PPF function as a long-term emergency fund with better returns than a savings account. The key: don't actually withdraw unless truly needed. Let the power of compounding work — but know the safety net exists.

📈PPF interest rate outlook

PPF rates are linked to 10-year government bond yields with a 25 basis point spread. As of April 2026, 10-year G-sec yield is approximately 6.8-6.9%, supporting the current 7.1% PPF rate. If bond yields rise (due to RBI tightening or fiscal deficit), PPF rates could increase in future quarters. If yields fall (rate cuts), PPF rates might decrease — though the government has been reluctant to cut PPF rates below 7% due to political sensitivity.

Historically, PPF rates were as high as 12% in the 1990s and have been on a declining trend: 9.5% in 2000, 8.7% in 2010, 8% in 2015, 7.1% since 2023. Despite the declining trend, PPF remains attractive because it's compared against post-tax returns of alternatives. At 7.1% tax-free, PPF is equivalent to a 10%+ pre-tax instrument — few investments offer that with sovereign safety.

🏦Where to open PPF — bank vs post office

Banks (SBI, HDFC, ICICI, etc.): Online access, net banking deposits, mobile app management. Transfer between branches is easy. Linked to your existing savings account for seamless deposits. Recommended for most urban investors. ICICI and HDFC offer the best online PPF management interfaces.

Post Office: Available everywhere including rural areas. Traditional passbook system. Online access has improved but still lags behind banks. Post office PPF can be transferred to a bank (and vice versa). Good if your nearest banking is limited. Interest rate is the same regardless of where you open.

Important: You can have only ONE PPF account. Operating two is illegal — the second account will be closed with only principal returned (no interest). If you accidentally opened two, consolidate them by transferring the second into the first at the earliest. The oldest account's opening date is preserved.

💰PPF vs Sukanya Samriddhi vs NSC — government savings compared

PPF (7.1%, 15yr lock-in): Available to all Indian residents. ₹500-1.5L annual deposit. EEE tax status (contribution, interest, maturity all tax-free). Best for long-term guaranteed savings with maximum tax efficiency. Can be extended indefinitely in 5-year blocks.

Sukanya Samriddhi Yojana (8.2%, 21yr): Only for girl children under 10 years. ₹250-1.5L annual deposit. EEE status. Higher rate than PPF. Deposits required for first 15 years, account matures at 21 or girl's marriage after 18. If you have a daughter, SSY should be prioritized over PPF due to the 1.1% higher rate — over 15 years that adds approximately ₹2.5 lakh more on ₹1.5L annual deposits.

National Savings Certificate (6.8%, 5yr): Fixed 5-year deposit. No premature withdrawal. Interest is taxable annually (accrual basis) but qualifies for 80C reinvestment deduction in years 1-4. Lower rate than PPF but shorter lock-in. Useful if you need 80C deduction and want money back in 5 years instead of 15. Available at any post office.

Kisan Vikas Patra (7.5%, doubles in ~115 months): No maximum limit. Available at post offices. Interest is taxable at slab rate. No 80C benefit. Lock-in of 30 months (premature closure allowed after that with penalty). Good for risk-averse investors who want a simple "double your money" product without tax considerations.

📊PPF maturity projections — planning your corpus

Conservative saver (₹50,000/year): After 15 years at 7.1% = ₹13.56 lakh. After 20 years (5-year extension with deposits) = ₹21.73 lakh. After 25 years = ₹33.26 lakh. Even modest amounts create meaningful wealth over PPF's long compounding period.

Maximum contributor (₹1,50,000/year): After 15 years = ₹40.68 lakh (invested ₹22.5L, interest ₹18.2L). After 20 years = ₹65.18 lakh. After 25 years = ₹99.77 lakh — nearly ₹1 crore! If you max out PPF for 25 years, you build a ₹1 crore tax-free corpus with zero risk. No other instrument offers this combination of safety, returns, and tax efficiency.

Late starter (age 40, ₹1,50,000/year): PPF matures at age 55 with ₹40.68 lakh. Extend without deposits until 60: grows to ₹57.50 lakh (interest alone adds ₹16.82L in those 5 years without any fresh deposits). Extend further to 65 = ₹81.24 lakh. Even starting at 40, PPF creates a strong retirement supplement.

⚠️PPF pitfalls and how to avoid them

Inactive account trap: If you don't deposit minimum ₹500 in any financial year, the account becomes "discontinued." To reactivate, pay ₹50 penalty per year of default + ₹500 minimum for each missed year + ₹500 for the current year. On an account inactive for 5 years, that's ₹250 penalty + ₹2,500 back deposits + ₹500 current = ₹3,250 to reactivate. Set an annual reminder to deposit at least ₹500.

Maturity without extension: If your PPF matures and you don't actively choose an extension option within 1 year of maturity, the account continues in "no contribution" mode by default. You can still withdraw, and the balance earns interest, but you cannot make fresh deposits. If you intended to extend WITH deposits, apply within 1 year of maturity — it's retroactive only within this window.

Nomination oversight: Many PPF holders forget to update nominee after life changes (marriage, children). If you die without a nominee, the legal heir has to go through probate/succession certificate — delaying access to funds by months. Update nominee whenever your family situation changes. Both banks and post offices allow online nominee updation.

Joint account myth: PPF cannot be held jointly. It's always a single-holder account. Husband and wife should open separate accounts to maximize the ₹1.5 lakh × 2 = ₹3 lakh annual family contribution (and double the 80C deduction). Each gets their own tax-free compounding trajectory.

❓Frequently asked questions