Calculate your Public Provident Fund maturity amount, tax-free interest and 80C tax savings over 15 years.
Investing the maximum ₹1,50,000/year for 15 years at 7.1% gives a maturity of approximately ₹40,68,209 — completely tax-free. You invest ₹22,50,000 and earn about ₹18,18,209 in interest. The ₹1.5L contribution also saves up to ₹46,800/year in tax under Section 80C.
| Yearly Investment | Total Invested | Interest Earned | Maturity Amount |
|---|---|---|---|
| ₹25,000 | ₹3,75,000 | ₹3,03,035 | ₹6,78,035 |
| ₹50,000 | ₹7,50,000 | ₹6,06,070 | ₹13,56,070 |
| ₹1,00,000 | ₹15,00,000 | ₹12,12,139 | ₹27,12,139 |
| ₹1,25,000 | ₹18,75,000 | ₹15,15,174 | ₹33,90,174 |
| ₹1,50,000 (max) | ₹22,50,000 | ₹18,18,209 | ₹40,68,209 |
All interest and maturity is 100% tax-free under the EEE regime. Maximum contribution is ₹1.5 lakh/year.
| Tenure | Total Invested | Maturity Amount | Interest Component |
|---|---|---|---|
| 15 years (base) | ₹22,50,000 | ₹40,68,209 | ₹18,18,209 |
| 20 years (+1 extension) | ₹30,00,000 | ₹66,58,288 | ₹36,58,288 |
| 25 years (+2 extensions) | ₹37,50,000 | ₹1,03,08,015 | ₹65,58,015 |
| 30 years (+3 extensions) | ₹45,00,000 | ₹1,54,50,911 | ₹1,09,50,911 |
Extending PPF in 5-year blocks lets tax-free compounding continue — reaching over ₹1.5 crore in 30 years.
The Public Provident Fund (PPF) is a government-backed, long-term savings scheme in India offering guaranteed, tax-free returns. It has a 15-year lock-in period and currently earns 7.1% per annum, compounded annually. The interest rate is reviewed quarterly by the government. PPF is one of the safest investments available, backed by a sovereign guarantee, making it ideal for conservative investors and retirement planning.
PPF enjoys the coveted EEE (Exempt-Exempt-Exempt) tax status: your contributions (up to ₹1.5 lakh/year) are deductible under Section 80C, the interest earned is tax-free, and the maturity amount is also tax-free. This triple tax benefit makes PPF one of the most tax-efficient instruments in India. Compare it with market-linked options using our SIP calculator and fixed deposits via our FD calculator.
Investing the full ₹1,50,000 every year for 15 years at 7.1% grows to ₹40,68,209 — of which ₹18,18,209 is tax-free interest. Since deposits also qualify for 80C, a taxpayer in the 30% bracket saves ₹46,800 in tax each year, effectively boosting the real return well beyond 7.1%.
The PPF interest rate is 7.1% per annum, compounded annually. It's reviewed and set by the government every quarter. PPF interest is completely tax-free under the EEE regime.
Investing the maximum ₹1,50,000/year for 15 years at 7.1% gives a maturity of approximately ₹40,68,209. Total investment is ₹22,50,000, and tax-free interest is about ₹18,18,209.
The maximum annual PPF contribution is ₹1,50,000 (minimum ₹500). This maximum also qualifies for Section 80C deduction, saving up to ₹46,800 in tax for those in the 31.2% bracket.
Yes. PPF falls under EEE (Exempt-Exempt-Exempt) — contributions are deductible under 80C, interest is tax-free, and maturity is tax-free. This makes it one of India's most tax-efficient investments.
Yes. After the 15-year lock-in, you can extend in blocks of 5 years, with or without further contributions. The extension request must be made within 1 year of maturity. Extending continues the tax-free compounding.
Partial withdrawals are allowed from the 7th financial year, up to 50% of the balance at the end of the 4th preceding year. A loan facility is available between years 3 and 6. Premature closure is only allowed for serious illness or higher education.
Interest is calculated on the minimum balance between the 5th and last day of each month. Deposit before the 5th to maximise interest. For lump-sum yearly investment, deposit before April 5th to earn interest on the full amount all year.
PPF interest is calculated on the minimum balance between the 5th and month-end. Always deposit before the 5th to earn interest on that amount for the full month.
If investing your full ₹1.5 lakh at once, do it before April 5th. This earns interest on the entire amount for the whole financial year — more than monthly deposits.
The ₹1,50,000 annual maximum qualifies fully for Section 80C, saving up to ₹46,800 in tax (30% bracket). This effectively boosts your real return well above 7.1%.
Don't close your PPF at maturity — extend in 5-year blocks to keep the tax-free compounding going. Over 30 years, ₹1.5L/year grows to over ₹1.5 crore, all tax-free.
PPF is a perfect low-risk, tax-free debt component in your portfolio. Pair it with equity SIPs for growth — PPF provides stability, SIPs provide higher long-term returns.
Since PPF has a 15-year lock-in, opening an account early (even with the minimum ₹500) starts the clock. You can always increase contributions later as income grows.