PPF Calculator
Calculate Public Provident Fund maturity amount and tax-free interest
Maturity Amount
₹40,68,209
- Total Deposited
- ₹22,50,000
- Interest Earned
- ₹18,18,209
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
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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(0 + deposit) × (1 + r)(₹0 + ₹1,50,000) × 1.0710 = ₹1,60,650
- 3Year 2(closing₁ + 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
- 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
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