# PPF Calculator

> Depositing the maximum ₹1.5 lakh a year in a PPF at 7.1% for 15 years builds ₹40,68,209: ₹22.5 lakh of deposits and ₹18,18,209 of tax-free interest, compounded yearly. The calculator also projects 5-year extensions with or without fresh deposits.

- Interactive calculator: https://calculatorswithsteps.com/ppf-calculator
- Category: India Finance Calculators
- Last updated: 2026-11-10
- Publisher: Calculators With Steps (calculatorswithsteps.com)

## How to use the PPF calculator

1. **Yearly deposit** – between ₹500 and ₹1,50,000 per financial year. If you invest monthly, enter 12 times your monthly amount.
2. **Interest rate** – 7.1% is the rate for October–December 2026. Try a lower figure to see a cautious estimate.
3. **Years to maturity** – 15 for a new account. For an existing account, enter the years left.
4. **Current PPF balance** – your balance today if you already have an account (this is the "PPF calculator with existing balance" option).
5. **Extend after maturity** – add one to three 5-year blocks, with or without fresh deposits.

You get the maturity value, total deposits, interest earned, a chart and a year-by-year table showing each deposit, the interest credited and the closing balance.

## PPF formula

PPF interest compounds once a year. For a new account with the same deposit every year, made by 5 April:

**M = D × [((1 + r)^n − 1) ÷ r] × (1 + r)**

- **M** = maturity value
- **D** = yearly deposit
- **r** = interest rate ÷ 100
- **n** = number of years

The extra (1 + r) at the end is there because each deposit earns interest in the year it is made. When the rate changes, or you have an existing balance, the calculator simply repeats the yearly step: closing balance = (opening balance + deposit) × (1 + r).

## Worked example

₹1,50,000 a year for 15 years at 7.1%:

- M = 1,50,000 × [((1.071)^15 − 1) ÷ 0.071] × 1.071 = **₹40,68,209**
- Total deposited = ₹22,50,000, so tax-free interest = **₹18,18,209**

| Yearly deposit at 7.1% | Deposited in 15 years | Maturity value |
| --- | --- | --- |
| ₹500 (minimum) | ₹7,500 | ₹13,561 |
| ₹12,000 (₹1,000 a month) | ₹1,80,000 | ₹3,25,457 |
| ₹1,00,000 | ₹15,00,000 | ₹27,12,139 |
| ₹1,50,000 (maximum) | ₹22,50,000 | ₹40,68,209 |

Every ₹1 deposited every year for 15 years at 7.1% becomes about ₹1.81.

## Extending PPF after 15 years

Within one year of maturity you can extend the account in 5-year blocks. The extension is where compounding really adds up:

| ₹1.5 lakh a year at 7.1% | Total deposited | Value |
| --- | --- | --- |
| 15 years (maturity) | ₹22.5 lakh | ₹40,68,209 |
| 20 years, deposits continued | ₹30 lakh | ₹66,58,288 |
| 25 years, deposits continued | ₹37.5 lakh | ₹1,03,08,015 |
| 20 years, no deposits after year 15 | ₹22.5 lakh | ₹57,32,587 |

If you already have ₹5 lakh in your account with 8 years to go, adding ₹1.5 lakh a year takes it to ₹25,19,722 at maturity.

## PPF rules worth knowing

- **Deposit by 5 April.** Interest for each month is paid on the lowest balance between the 5th and month-end, so a deposit on 6 April misses April's interest. Monthly investors should pay before the 5th of each month.
- **Limits:** at least ₹500 a year to keep the account active, at most ₹1.5 lakh a year across all your PPF accounts and any you hold for minors.
- **Loans and withdrawals:** loans from the 3rd financial year, partial withdrawals from the 7th.
- **Rate resets every quarter**, and the new rate applies to the whole balance. This calculator assumes today's rate holds for the full term.
- **No TDS and no tax** on the interest or the maturity amount.

## PPF vs FD vs ELSS

PPF gives a government-backed, tax-free 7.1%. An [FD at 7%](https://calculatorswithsteps.com/fd-calculator) is fully taxable, so in the 30% slab it keeps only about 4.8%. Equity funds through a [SIP](https://calculatorswithsteps.com/sip-calculator) can earn more over 15 years but carry market risk. Many investors use PPF as the safe, debt part of a long-term portfolio, and the old-regime 80C deduction is a bonus. Check whether you would still benefit from 80C with the [income tax calculator](https://calculatorswithsteps.com/income-tax-calculator-india).

## Frequently asked questions

### What is the PPF interest rate now?

7.1% a year, compounded annually, for October to December 2026. The Finance Ministry sets the rate every quarter, and it has stayed at 7.1% for many years. Unlike an FD, the new rate applies to your whole balance, not just new deposits.

### How much will I get if I invest ₹1.5 lakh a year in PPF for 15 years?

At 7.1%, ₹1.5 lakh a year for 15 years grows to ₹40,68,209. You deposit ₹22.5 lakh and earn ₹18,18,209 in tax-free interest, assuming each deposit is made by 5 April.

### How is PPF interest calculated?

Interest is worked out every month on the lowest balance between the 5th and the last day of the month, at the annual rate ÷ 12, and the total is credited on 31 March. If you deposit the full amount by 5 April, this works out to simple annual compounding: closing balance = (opening balance + deposit) × 1.071.

### What if I invest ₹1,000 a month in PPF?

₹1,000 a month is ₹12,000 a year. If you deposit it as a lump sum by 5 April each year, it grows to ₹3,25,457 in 15 years at 7.1%. Monthly deposits made after the 5th earn slightly less, because each one misses that month's interest.

### Can I extend my PPF account after 15 years?

Yes, in blocks of 5 years, as many times as you like, with or without fresh deposits. Continuing ₹1.5 lakh a year for one more block takes the balance from ₹40.68 lakh to ₹66.58 lakh; stopping deposits but letting it earn gives ₹57.33 lakh after the same 5 years.

### Is PPF tax-free?

Yes, PPF is EEE (exempt-exempt-exempt). Deposits qualify for the ₹1.5 lakh Section 80C deduction under the old regime, and both the interest and the maturity amount are tax-free under both regimes.

### When can I withdraw money from PPF?

Partial withdrawals are allowed once a year from the 7th financial year, and loans from the 3rd financial year. The account matures 15 years after the end of the financial year in which you opened it, and can be closed early only in limited cases such as serious illness or higher education.

### Can I open a PPF account in a post office or bank?

Yes, at any post office or authorised bank such as SBI, other public sector banks and some private banks. The rate, limits and rules are the same everywhere because the scheme is run by the government.

## Sources

- [National Savings Institute – Interest rates on National Savings Schemes](https://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=132)
- [National Savings Institute – National Savings Schemes at a glance](https://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=27)
- [Indian Bank – Small savings rates for Q3 FY 2026-27 (Finance Ministry OM dated 30.09.2026)](https://indianbank.bank.in/en/interest-rates-for-small-savings-schemes)

> Disclaimer: results are estimates for information and education, not financial advice. Confirm important decisions with a qualified professional.