PPF Calculator (Post Office & Bank)
The Public Provident Fund (PPF) is one of India’s most trusted long-term savings schemes, offering guaranteed, tax-free returns backed by the government. You can open a PPF account at any post office or designated bank, and the same scheme rules and PPF interest rate apply everywhere. With a 15-year investment tenure and annual compounding, it rewards patient, disciplined saving. This public provident fund calculator projects how your yearly investment amount grows into a sizeable corpus. Enter your annual investment and the current interest rate, and it shows the maturity amount and the interest earned over the full term. Because the PPF scheme enjoys EEE (exempt-exempt-exempt) status, your contributions qualify for a Section 80C deduction under the Income Tax Act, and both the interest and the maturity amount are completely tax-free. Use this PPF calculator to plan your annual contribution and see the power of long-term financial planning and tax-free compounding — whether your account is held at the post office or a bank.
Maximum ₹1,50,000 per financial year.
Current PPF rate is 7.1% (set quarterly by the government).
PPF has a 15-year lock-in, extendable in 5-year blocks.
Maturity Value
₹40,68,209
Total Invested
₹22,50,000
Total Interest
₹18,18,209
About the PPF Calculator
A PPF calculator estimates the maturity amount of yearly contributions to a Public Provident Fund (PPF) account over its 15-year term, using the government-declared PPF interest rate with annual compounding. Whether you hold your PPF account at the post office or a bank, it shows how each year’s deposit and the accumulated interest build the final corpus — making it easy to compare PPF returns against other investment options.
Why it is useful
PPF runs for 15 years, so it is hard to picture the end result. This tool makes the long horizon concrete, helping you decide how much to contribute each year, when to invest for maximum interest, and how PPF fits into your overall tax-saving and retirement plan.
How the calculation works
Interest is calculated on the lowest balance between the 5th and last day of each month and credited annually. In effect, each year’s contribution earns the declared rate, and the balance compounds yearly: new balance = (previous balance + contribution) × (1 + rate). The calculator repeats this for 15 years.
Key inputs explained
- Annual investment: Your yearly contribution, between ₹500 and ₹1.5 lakh.
- Interest rate: The government-declared PPF rate (7.1% as of 2025).
- Tenure: The 15-year term, extendable in 5-year blocks.
Example calculation
Inputs
- Annual investment
- ₹1,50,000
- Interest rate
- 7.1% p.a.
- Tenure
- 15 years
Calculation breakdown
- Total invested
- ₹1,50,000 × 15 = ₹22,50,000
- Annual compounding
- (balance + contribution) × 1.071
- Interest earned
- ≈ ₹18.18 lakh
Contributing the ₹1.5 lakh maximum each year, you invest ₹22.5 lakh and receive about ₹40.68 lakh tax-free at maturity — nearly ₹18 lakh of it is interest.
Benefits
- Completely tax-free under EEE status.
- Sovereign-backed, so capital is fully safe.
- Qualifies for an 80C deduction up to ₹1.5 lakh a year.
Limitations
- 15-year lock-in with only limited partial withdrawals.
- Annual contribution capped at ₹1.5 lakh.
- The rate is reset quarterly by the government, so it can fall.
Tips
- Make your PPF investment before the 5th of the month so that month’s balance earns interest.
- Contributing early in the financial year maximises annual interest and long term savings.
- Extend in 5-year blocks at maturity to keep the tax-free compounding going.
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About this calculator
The PPF Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.