PPF Calculator

Getting the most from your PPF account

The Public Provident Fund suits people who want safe, tax-free growth and do not need the money for a long time. Interest is set by the government each quarter, the account runs for 15 years, and both the interest and the maturity amount are tax-free. If you deposit the maximum ₹1.5 lakh every year for 15 years at 7.1%, you invest ₹22.5 lakh and the account grows to roughly ₹40 lakh.

Small habits add up. Interest for each month is calculated on the lowest balance between the fifth and the last day of that month. Depositing before the fifth, and ideally in April for the yearly lump sum, means your money earns interest for the full month or year. Over fifteen years, that habit can add a meaningful amount compared with depositing in March.

After 15 years you can extend the account in blocks of five years, with or without fresh deposits, which makes PPF useful for retirement planning too. Partial withdrawals are allowed from the seventh financial year, and loans against the balance are possible earlier, but the account is designed to be left alone. Because rates can change every quarter, test a slightly lower rate in this calculator to see a cautious estimate. PPF works best as the stable part of a portfolio, alongside equity investments that can grow faster but carry more risk. Many families also open an account for a spouse to make full use of the yearly limit. Keep the passbook or online statement updated each year so you can confirm that the interest credited matches what you expected.