The Public Provident Fund has quietly built crores of Indian retirement corpuses for decades: you deposit up to ₹1.5 lakh a year, the government pays interest (currently 7.1% p.a., revised quarterly), and after 15 years the entire maturity — deposits plus interest — is completely tax-free. It sits in the EEE category (exempt at investment, on interest, and at withdrawal), which makes its effective return far higher than taxable fixed deposits for anyone in a tax slab. This PPF calculator projects your maturity value for any annual deposit over 15 years, shows the year-wise balance, and models extensions in 5-year blocks for those who keep going.
How PPF grows
Interest is computed on the lowest balance between the 5th and the end of each month and credited yearly — so depositing before the 5th of April each year earns a full year's extra interest versus depositing late.
Example
₹1,50,000/year for 15 years at 7.1%. Total deposits: ₹22,50,000. Maturity: about ₹40,68,000 — interest roughly ₹18,18,000, all tax-free. Extend 5 more years (₹7,50,000 more deposited) and maturity crosses ~₹66 lakh.
Key rules
Minimum ₹500/year keeps the account alive; maximum ₹1.5 lakh/year. One account per person. Partial withdrawals allowed from year 7, loans from year 3. The account matures after 15 financial years and can be extended in 5-year blocks indefinitely, with or without fresh deposits.
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Frequently asked questions
What is the current PPF interest rate?
7.1% per annum (2025–26), set by the government and revised quarterly. The calculator lets you change it if rates move.
Is PPF maturity tax-free?
Yes — PPF is EEE: deposits get 80C deduction, interest is tax-free, and maturity is tax-free.
Can I extend PPF after 15 years?
Yes, in blocks of 5 years, with or without new deposits. Continuing deposits keeps compounding the full balance.
What happens if I miss a year's deposit?
The account becomes discontinued; revive it by paying ₹500 per missed year plus a ₹50 penalty per year before maturity.