India PPF Calculator

Public Provident Fund is a long-term government-backed savings scheme. Annual contribution limit: ₹1.5 lakh (combined with other 80C investments). Lock-in: 15 years from end of the financial year of opening, with partial withdrawals allowed from year 7. Current interest rate: 7.1% per annum, set quarterly by the Ministry of Finance and tax-free.

PPF qualifies for the EEE (Exempt-Exempt-Exempt) treatment under old regime: contribution deductible under 80C, interest accrual not taxed, maturity proceeds tax-free. This triple tax exemption is rare and makes PPF one of the most attractive sovereign-backed instruments for risk-averse savers in India.

Interest is calculated monthly on the lowest balance between the 5th and last day of each month, then credited annually on March 31. So depositing on the 4th captures that month's interest; depositing on the 6th does not. Disciplined savers contribute by the 5th of each month or annually before April 5 to maximise compounding.

₹1.5 lakh deposited annually for 15 years at 7.1% grows to roughly ₹40.7 lakh - about ₹18 lakh of which is interest. The corpus continues compounding even if you stop new contributions, and you can extend the account in 5-year blocks indefinitely after maturity (with or without continued contributions).

Partial withdrawal allowed from year 7 onwards: up to 50% of balance at the end of the 4th preceding year, once per year. Loans against PPF allowed from year 3 to year 6: up to 25% of the balance at the end of the 2nd preceding year, at 1% above current PPF rate, repaid within 36 months.

At 15-year maturity: full withdrawal tax-free, OR extend by 5 years (with or without further contributions). Many savers extend continuously for additional decades, building a large tax-free retirement corpus. Premature closure is allowed only after 5 years for serious illness, education, or NRI status change.

PPF gives 7.1% guaranteed, fully tax-free, government-backed - the safest 80C option. ELSS mutual funds offer higher expected returns (10-12%) with 3-year lock-in vs PPF's 15-year, but with market risk. EPF offers 8.15% (currently) but requires employment. Tax-saving FDs offer flexibility but with taxable interest.

PPF works well as the bond/safe portion of an investment portfolio. Younger savers often complement PPF with equity ELSS for growth; older or conservative savers may prefer larger PPF allocation. Note that PPF benefit only applies under old tax regime - new regime offers no 80C deduction. Use the [India SIP Calculator](/india-sip-calculator) for the equity comparison.