PPF Calculator

About the PPF Calculator

The Public Provident Fund (PPF) is a long-term, government-backed savings scheme popular for its safety and tax benefits. It has a 15-year lock-in, which can be extended in blocks of five years, and you can invest between Rs 500 and Rs 1.5 lakh per year. The interest rate is set by the government every quarter and is credited annually. Because it is sovereign-backed, your capital and returns are effectively guaranteed, making it a cornerstone of conservative financial planning.

PPF interest compounds annually, so each year's balance earns interest that is added to the principal for the next year. This calculator projects your maturity value based on your yearly contribution and the assumed rate over the tenure, using annual compounding on the growing balance. The long lock-in combined with compounding means that steady annual contributions can grow into a sizeable, entirely tax-free corpus by maturity.

PPF enjoys the coveted exempt-exempt-exempt (EEE) tax status: your contributions qualify for deduction under Section 80C, the interest earned is tax-free, and the maturity amount is also tax-free. This makes it especially attractive for those in higher tax brackets seeking risk-free returns. To maximise interest, deposit before the 5th of the month, since interest is calculated on the lowest balance between the 5th and month-end.

How to use it

• PPF has a 15-year lock-in, extendable in five-year blocks, with EEE tax-free status.
• Contributions of Rs 500 to Rs 1.5 lakh a year qualify for deduction under Section 80C.
• Deposit before the 5th of the month to earn interest on that month's balance.
• The interest rate is revised quarterly by the government and credited at year end.