PPF Calculator — Public Provident Fund Tool
Secure your future with our PPF Calculator. The Public Provident Fund (PPF) is one of India's most popular small savings schemes, offering tax-free returns and sovereign-backed safety. With a mandatory 15-year lock-in period, it is an excellent tool for long-term wealth preservation and retirement planning.
- Free Online Tool
- Instant Results
- No Installation
- Secure & Private
Understanding This Calculator
Why PPF is the Preferred Choice for Indian Savers
The PPF account was introduced by the National Savings Institute of the Ministry of Finance in 1968. It falls under the **EEE (Exempt-Exempt-Exempt)** tax status, meaning your investment, interest earned, and maturity amount are all exempt from income tax. Interest is compounded annually, but calculated on the minimum balance in your account between the 5th and the last day of every month.
The PPF Formula
The maturity amount of a PPF account is calculated using the compound interest formula for a fixed installment:
F = P [({(1 + i)^n} − 1) / i]
- F: Maturity Amount (₹)
- P: Annual Installment (₹)
- i: Annual interest rate (%) / 100
- n: Number of years (Min 15)
Key Features of PPF Accounts
- Sovereign Guarantee: Since it is backed by the Government of India, the principal and interest are 100% secure.
- Tax Benefits: Contributions are eligible for deduction under Section 80C (up to ₹1.5 lakh).
- Partial Withdrawals: You can withdraw a portion of your funds after the 7th year under specific conditions.
- Account Extension: You can extend your PPF account in blocks of 5 years after the initial 15-year maturity.
- Loan Facility: You can take a loan against your PPF balance from the 3rd to the 6th financial year.
How to Use
- Enter your Annual Investment (minimum ₹500, maximum ₹1,50,000 per year).
- Set the Interest Rate (currently 7.1%, but set by the government quarterly).
- Choose the Tenure (default is 15 years).
- View the Maturity Amount and the total interest generated.
Frequently Asked Questions
What is the maximum limit for PPF investment?
The maximum amount you can deposit in a PPF account in a single financial year is ₹1,50,000.
Can I have two PPF accounts?
No, an individual can only have one PPF account in their name (excluding minor accounts where they are the guardian).
Is PPF interest taxable?
No, the interest earned on PPF is completely tax-free under current Indian income tax laws.
When is interest credited to a PPF account?
Interest is calculated monthly (based on balance between the 5th and 30th) but credited annually at the end of the financial year (March 31st).
What happens if I don't deposit money for a year?
The account will become 'discontinued'. You can revive it by paying a penalty of ₹50 and the minimum deposit of ₹500 for each missed year.
Can I close my PPF account early?
Premature closure is allowed only after 5 years for specific reasons like life-threatening diseases or higher education, with a 1% interest rate penalty.
Is PPF better than ELSS?
PPF offers guaranteed, tax-free returns but lower interest than ELSS (which are equity-linked). ELSS is better for high-risk, high-return, while PPF is better for capital safety.
What is the 5th of the month rule in PPF?
To maximize interest, you should deposit your funds before the 5th of the month, as balance after the 5th does not earn interest for that month.
Can NRIs open a PPF account?
NRIs cannot open new PPF accounts. However, if they had an account before becoming an NRI, they can continue it until maturity (but cannot extend it).
How long can I extend my PPF account?
After 15 years, you can extend the account indefinitely in blocks of 5 years each, either with or without further contributions.