Calculate your Public Provident Fund (PPF) maturity amount and yearly returns.
PPF (Public Provident Fund) is one of India's most popular long-term savings schemes, backed by the Government of India. It offers guaranteed, tax-free returns and is considered one of the safest investment options available. Our PPF calculator online helps you estimate the maturity amount, total interest earned, and year-by-year balance for your PPF account.
PPF interest is calculated on the lowest balance between the 5th and last day of each month. To maximize returns, always deposit before the 5th of the month. Interest is credited annually on March 31st. Investing the maximum Rs. 1.5 lakh at the beginning of each financial year (April) gives you more interest than investing it at the end.
You can make one partial withdrawal per year from the 7th financial year onwards. The maximum withdrawal is 50% of the balance at the end of the 4th year or 50% of the balance at the end of the preceding year, whichever is lower. These withdrawals are completely tax-free and do not affect the lock-in period.
PPF offers guaranteed, tax-free returns with government backing — ideal for conservative investors. FDs offer fixed returns but interest is taxable. Equity mutual funds offer potentially higher returns (10-15%) but with market risk. For a balanced approach, financial advisors often recommend PPF for the debt portion of your portfolio alongside equity mutual funds for long-term wealth creation.
Public Provident Fund (PPF), a long-term government-backed savings scheme most notably used in India, offers tax-advantaged growth with a fixed lock-in period, typically 15 years, and an interest rate set periodically by the government that compounds annually on the account balance. Because of the long mandatory lock-in period, PPF calculations need to project growth over a genuinely extended time horizon, where even modest annual contributions can compound into a substantial sum given the full 15-year (or extended) investment period.
PPF contributions, interest earned, and maturity proceeds are typically exempt from tax in the jurisdictions that offer this scheme, making it one of the more tax-efficient long-term savings vehicles available, which is a significant factor in its total effective return compared to a taxable investment offering a similar nominal interest rate.
PPF accounts typically allow limited partial withdrawals after a certain number of years have passed, and the account can usually be extended in blocks of additional years beyond the initial mandatory lock-in period, with or without continued contributions. Understanding these specific rules is important for accurately projecting the account's growth trajectory under different contribution and withdrawal scenarios over its full multi-decade potential lifespan.
Given its long mandatory lock-in period and government-set interest rate, PPF is generally best used as one component of a diversified long-term savings strategy rather than a sole investment vehicle, complementing more liquid or market-linked investments that offer different risk, return, and accessibility trade-offs for other financial goals.
Evaluating PPF's real return requires comparing its interest rate against prevailing inflation, since a nominal return that barely exceeds inflation results in limited real growth in purchasing power over the account's long lock-in period, making it worth checking the real, inflation-adjusted return rather than looking only at the advertised nominal interest rate.
PPF (Public Provident Fund) is a long-term savings scheme backed by the Indian government offering tax benefits and guaranteed returns.
The PPF interest rate is revised quarterly by the government. It has typically been around 7.1% in recent years. Check the official government website for the latest rate.
PPF has a mandatory lock-in period of 15 years. Partial withdrawals are allowed from the 7th year onwards under certain conditions.
No. PPF falls under the EEE (Exempt-Exempt-Exempt) category — contributions, interest earned, and maturity amount are all completely tax-free.
Enter ₹22,70,000 as your current PPF balance above along with your remaining tenure and interest rate to project the maturity value accurately.
