How to use the PPF calculator
- Yearly deposit: anything from ₹500 to ₹1,50,000 in a financial year.
- Interest rate: pre-filled with 7.1%, the rate for October to December 2026. The government reviews it every quarter, so you can change it.
- Account period: 15 years, or longer if you plan to extend in 5-year blocks.
How PPF interest is calculated
PPF interest is worked out every month on the lowest balance between the 5th and the last day of the month, and added to your account once a year, at the end of March. That is why it pays to deposit before the 5th, and best of all before 5 April, so the whole year's deposit earns interest for all twelve months.
The calculator assumes exactly that: the full deposit at the start of each year, compounding yearly.
Maturity value = yearly deposit × [((1 + r)n − 1) ÷ r] × (1 + r)
Worked example: ₹1.5 lakh a year at 7.1%
| Period | Your deposits | Interest earned | Maturity value |
|---|---|---|---|
| 15 years | ₹22.5 lakh | ₹18.2 lakh | ₹40.7 lakh |
| 20 years | ₹30.0 lakh | ₹36.6 lakh | ₹66.6 lakh |
| 25 years | ₹37.5 lakh | ₹65.6 lakh | ₹1.03 crore |
| 30 years | ₹45.0 lakh | ₹1.10 crore | ₹1.55 crore |
The extensions are where PPF really shines: in years 16 to 30 the interest earned is far larger than in the first 15, because it is calculated on a much bigger balance.
The rules worth knowing
- Lock-in: 15 financial years. After that you can close the account or extend it in blocks of 5 years, with or without fresh deposits.
- Loans are available from the 3rd to the 5th financial year, up to 25% of an earlier balance.
- Partial withdrawals are allowed from the 7th financial year, up to 50% of an earlier balance.
- Premature closure after 5 years is allowed only for specific reasons such as serious illness or higher education, with a 1% interest penalty.
- Tax: interest and maturity are tax-free. Under the old tax regime, deposits also qualify for the deduction that used to be Section 80C (now Section 123 of the Income-tax Act, 2025) within the ₹1.5 lakh limit. The new regime does not give this deduction.
PPF or an equity SIP?
They do different jobs. PPF gives a government-backed, tax-free return with no market risk, but a long lock-in. An equity SIP has no lock-in (except ELSS) and has the potential for higher long-term growth, but its value goes up and down.
For comparison only: ₹12,500 a month in a SIP for 15 years would be about ₹63 lakh at an assumed 12%, or about ₹52 lakh at 10%, against PPF's ₹40.7 lakh. That higher figure is not guaranteed and is taxable. Many families use PPF as the safe anchor for long goals and SIPs for growth. The ELSS guide compares the tax-saving options.
Questions people ask
What is the PPF interest rate now?
7.1% a year for October to December 2026. The Ministry of Finance announces the rate every quarter.
How much will I get if I invest ₹1.5 lakh a year in PPF for 15 years?
About ₹40.7 lakh at 7.1%, if you deposit by 5 April every year. You put in ₹22.5 lakh; the remaining ₹18.2 lakh is tax-free interest.
Can I deposit monthly in PPF instead of once a year?
Yes. You can deposit in instalments during the year. Deposits made after the 5th of a month earn no interest for that month, so a single deposit before 5 April earns the most.
Can I withdraw from PPF before 15 years?
Partly. Partial withdrawals are allowed from the 7th financial year, and the account can be closed early after 5 years only for reasons such as illness or higher education, with a small interest penalty.
What happens to PPF after 15 years?
You can withdraw the full amount, or extend the account in blocks of 5 years. If you do nothing, it continues without fresh deposits and keeps earning interest. To keep depositing, you must apply for the extension within a year of maturity.