₹50,000 a year for 15 years
₹7,50,000 deposited grows to ₹13,56,070 at 7.1%, with ₹6,06,070 of tax-free interest.
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PPF Calculator
Calculate Public Provident Fund maturity amount and tax-free interest
Depositing ₹1,50,000 a year for 15 years at 7.1% gives about ₹40.68 lakh at maturity, ₹18.18 lakh of it tax-free interest.
Maturity Amount
₹40,68,209
- Total Deposited
- ₹22,50,000
- Interest Earned
- ₹18,18,209
- 80C Tax Saved
- ₹7,02,000
Tax-free at maturity — PPF is one of the few EEE instruments left.
Investment Summary
- Yearly investment
- ₹1,50,000
- Term
- 15 years
- Interest rate
- 7.10% p.a.
- Total deposited
- ₹22,50,000
- Interest earned
- ₹18,18,209
- Tax on maturity
- Nil
- Maturity amount
- ₹40,68,209
Composition
Deposits₹22,50,000 · 55.3%
Interest₹18,18,209 · 44.7%
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How this is calculated
Formula
closingₙ = (closingₙ₋₁ + deposit) × (1 + r)
- closingₙ
- = balance at the end of year n
- deposit
- = that year’s contribution, capped at ₹1.5 lakh
- r
- = annual rate as a decimal
With your numbers
- 1Rate as a decimalr = rate ÷ 1007.10% ÷ 100 = 0.0710
- 2Year 1(opening + deposit) × (1 + r)(₹0 + ₹1,50,000) × 1.0710 = ₹1,60,650
- 3Year 2(previous closing + deposit) × (1 + r)(₹1,60,650 + ₹1,50,000) × 1.0710 = ₹3,32,706
- 4…repeated to year 15maturity = closing on the final year₹22,50,000 deposited becomes ₹40,68,209, of which ₹18,18,209 is interest
Maturity amount₹40,68,209
- The model assumes the full year’s deposit is in place before interest is reckoned. In practice interest is credited on the lowest balance between the 5th and the month end, so depositing in early April rather than late March is worth a real amount over 15 years.
- A single rate held for the whole term is a scenario. The rate is notified quarterly and has moved several times over any 15-year window.
- None of the maturity amount is taxable, and none of the interest is. That is what makes the headline rate hard to compare against a taxable instrument — a 7.1% tax-free return beats a 9%+ taxable one at the 30% slab.
What is PPF?
The Public Provident Fund is a government-backed 15-year savings scheme with a government-notified rate, open to any resident individual.
It is the safest long-horizon instrument available to a retail saver in India, and the only common one where the return is entirely untaxed.
Key features
- • EEE: deposit deductible, interest tax-free, maturity tax-free
- • ₹500 minimum and ₹1.5 lakh maximum a year
- • 15-year lock-in, extendable in 5-year blocks
- • Partial withdrawal from year 7; loan against balance from year 3 to 6
- • Balance is protected from attachment by a court decree
Frequently Asked Questions
Year by year
₹1,50,000 a year, the maximum, for the full 15-year term at 7.1%, the rate notified for October–December 2026.
Show the table (15 rows)Hide the table
| Year | Opening balance | Deposit | Interest | Closing balance |
|---|---|---|---|---|
| 1 | ₹0 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 2 | ₹1,60,650 | ₹1,50,000 | ₹22,056 | ₹3,32,706 |
| 3 | ₹3,32,706 | ₹1,50,000 | ₹34,272 | ₹5,16,978 |
| 4 | ₹5,16,978 | ₹1,50,000 | ₹47,355 | ₹7,14,334 |
| 5 | ₹7,14,334 | ₹1,50,000 | ₹61,368 | ₹9,25,701 |
| 6 | ₹9,25,701 | ₹1,50,000 | ₹76,375 | ₹11,52,076 |
| 7 | ₹11,52,076 | ₹1,50,000 | ₹92,447 | ₹13,94,524 |
| 8 | ₹13,94,524 | ₹1,50,000 | ₹1,09,661 | ₹16,54,185 |
| 9 | ₹16,54,185 | ₹1,50,000 | ₹1,28,097 | ₹19,32,282 |
| 10 | ₹19,32,282 | ₹1,50,000 | ₹1,47,842 | ₹22,30,124 |
| 11 | ₹22,30,124 | ₹1,50,000 | ₹1,68,989 | ₹25,49,113 |
| 12 | ₹25,49,113 | ₹1,50,000 | ₹1,91,637 | ₹28,90,750 |
| 13 | ₹28,90,750 | ₹1,50,000 | ₹2,15,893 | ₹32,56,643 |
| 14 | ₹32,56,643 | ₹1,50,000 | ₹2,41,872 | ₹36,48,515 |
| 15 | ₹36,48,515 | ₹1,50,000 | ₹2,69,695 | ₹40,68,209 |
Deposit made by the 5th of April each year, so it earns the full year. The rate is reset every quarter; this holds today’s rate for the whole term.
Worked examples
Extended one block, to 20 years
After 15 years the account can be extended in blocks of 5 with deposits. One block at ₹1,50,000 a year takes the maturity from ₹40,68,209 to ₹66,58,288.
Open this in the calculatorExtended twice, to 25 years
₹37,50,000 deposited over 25 years becomes ₹1,03,08,015: interest is 64% of the balance by then.
Open this in the calculatorCommon mistakes
Depositing after the 5th
Interest is worked out on the lowest balance between the 5th and the end of each month, so a deposit made on the 6th earns nothing for that month. Paying the year’s ₹1,50,000 after the 5th of April every year instead of before it leaves ₹22,475 less at maturity.
PPF conventionsCounting PPF as its own ₹1,50,000 deduction
PPF deposits sit inside the single ₹1,50,000 Section 123 (formerly 80C) limit, shared with your EPF contribution, ELSS, life insurance premiums and children’s tuition fees. Under the new regime there is no Section 123 (formerly 80C) deduction at all. At the 30% old-regime slab, a full year’s deposit saves up to ₹46,800 of tax, only if the limit is not already used.
Tax saving calculator
Questions this answers
How much will ₹1.5 lakh a year in PPF be after 15 years?
₹40.7L at 7.1%, from ₹22.5L deposited. All of it, interest included, is tax-free. Try it
What does ₹1 lakh a year in PPF become in 15 years?
₹27.1L at 7.1%, of which ₹12.1L is interest. Try it
What happens when a PPF account matures?
After 15 years you can withdraw everything, or extend in blocks of 5 years with or without fresh deposits. With deposits, one more block takes ₹40.7L to ₹66.6L at today’s rate. Try it
Related Tools
Terms used here
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