PPF Calculator

⏱ Last updated: March 2026  |  ✅ Free  |  🔒 No data stored

How to Use

  1. Step 1: Enter your values in the input fields above
  2. Step 2: Click the Calculate button
  3. Step 3: View your instant, accurate result below

In the alphabet soup of investment options—Stocks, MFs, FDs, NPS, ULIPs—one acronym has stood the test of time since 1968: PPF (Public Provident Fund). It is widely regarded as the single best debt-instrument for Indian citizens. Why? Because it is the only instrument that offers the "EEE" advantage (Exempt-Exempt-Exempt) combined with a Sovereign Guarantee. This PPF Calculator helps you project your tax-free wealth over the 15-year tenure.

Table of Contents

The Miracle of EEE (Triple Exempt)

Most investments are taxed at some stage.
- FDs are taxed on Interest.
- Stocks are taxed on Capital Gains (LTCG).
- NPS is taxed on Annuity.

PPF is different.
1. Investment is Tax-Free: Your contribution (up to ₹1.5L) is deductible u/s 80C.
2. Interest is Tax-Free: The interest you earn every year is NOT added to your income.
3. Maturity is Tax-Free: When you withdraw the corpus after 15 years, you pay ZERO tax.

This makes the effective return of a 7.1% PPF comparable to a 10% FD for someone in the highest tax bracket!

Key Features & Rules

  • Tenure: 15 Years (mandatory lock-in).
  • Minimum Investment: ₹500 per year.
  • Maximum Investment: ₹1,50,000 per year. (You can invest more, but you won't get interest or 80C benefit on the excess).
  • Interest Rate: Floating. Decided by the Ministry of Finance every quarter. Historically ranged from 12% (in 1999) to 7.1% (current).
  • Risk Profile: Risk-Free. Backed by the Government of India.

The "5th of the Month" Strategy

This is a secret trick to maximize your PPF returns.

The Rule: Interest is calculated on the lowest balance in your account between the 5th and the last day of the month.

Scenario A: You invest ₹1.5 Lakhs on April 6th.
Result: The lowest balance between April 5th and 30th is your old balance. You earn ZERO interest on the new ₹1.5L for April. You lost 1 month of interest.

Scenario B: You invest ₹1.5 Lakhs on April 4th.
Result: The lowest balance between 5th and 30th includes your new deposit. You earn interest for April.

Pro Tip: Always invest before the 5th. Ideally, invest the full ₹1.5 Lakhs lump sum on April 1st to earn interest for the full financial year.

Extension Rules: The Wealth Multiplier

What happens after 15 years? You have three choices:
1. Withdraw: Take the money and close the account.
2. Extend Without Contribution: Keep the money there. It continues to earn interest. You can withdraw anytime.
3. Extend With Contribution: Extend for blocks of 5 years. You can continue putting money in and taking 80C benefits.

Extending is powerful. By Year 15, your base is large. The compounding in the 16th-20th year is explosive. A person who extends PPF to 30 years can easily build a corpus of over ₹1 Crore with disciplined investing.

Partial Withdrawal & Loan Facilities

Though it's a 15-year lock-in, PPF is not completely rigid.
Loan: Available from 3rd to 6th year. Interest charged is just 1% above PPF rate.
Partial Withdrawal: Available from the 7th financial year. You can withdraw 50% of the balance.
Premature Closure: Allowed only after 5 years for serious reasons (Medical treatment of family, Higher education of children).

Frequently Asked Questions (FAQs)

1. Can I open a PPF in a private bank?

Yes, major private banks like HDFC, ICICI, and Axis are authorized to open PPF accounts. The rules and interest rates remain exactly the same as Post Offices.

2. Can I have more than one PPF account?

No. An individual can have only ONE PPF account in their name across all of India. Opening a second one is illegal and it will be closed without interest.

3. How much tax can I save?

You can claim deduction on ₹1.5 Lakhs u/s 80C. If you are in the 30% slab, you save ₹46,800 in taxes instantly.

4. What happens if I forget to deposit the minimum amount?

The account becomes "Discontinued". To revive it, you must pay a penalty of ₹50 per year + arrears of ₹500 subscription for each missing year.

5. Can I open PPF for my minor child?

Yes, as a guardian. However, the combined limit for Parent + Child is still ₹1.5 Lakhs for tax purposes.

6. Is PPF wealth tax-free?

India currently does not have Wealth Tax. So yes, the entire corpus is yours to keep.

7. Can a court attach my PPF account?

No. A unique feature of PPF is that it cannot be attached by any court decree to pay off debts or liabilities. It is completely safe from creditors.

8. NRIs eligible?

NRIs cannot open a new PPF account. However, if they opened one before becoming an NRI, they can continue it till maturity (on non-repatriable basis).

9. Nomination rules?

You can nominate one or more persons and define their percentage share. Nomination can be changed anytime.

10. How is interest credited?

Interest is calculated monthly but credited to the account only once a year, on 31st March.

Common Use Cases for PPF Calculator

  • Use this PPF Calculator for quick, accurate online calculations — no app needed
  • Ideal for students, professionals, and anyone planning finances or health goals
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