The Public Provident Fund (PPF) is one of India’s safest and most tax-efficient long-term savings schemes — government-backed, with completely tax-free returns. Use this free PPF calculator to see how much your yearly deposits will grow, and view a full year-by-year breakdown.
PPF Calculator
See how much your Public Provident Fund grows over time. PPF is government-backed, and its returns are completely tax-free (EEE) — one of India's safest long-term savings options.
Maturity value
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100% tax-free at maturity
Total invested
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Total interest earned
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| Year | Opening | Deposit | Interest | Closing |
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How this works: assumes a fixed yearly deposit at the start of each year, with interest compounded annually at your chosen rate. The PPF minimum is ₹500/year and the maximum is ₹1.5 lakh/year; the base tenure is 15 years, extendable in blocks of 5. The current government rate is 7.1% p.a. (revised quarterly). PPF is EEE — deposits qualify under Section 80C, and both interest and maturity are tax-free. Educational estimate, not financial advice. Compare with market-linked options using our SIP calculator.
What is PPF?
PPF is a long-term savings scheme backed by the Government of India. You deposit money each year, it earns a government-set rate of interest (currently 7.1% p.a., compounded annually), and the entire corpus is tax-free when it matures. Because your capital is guaranteed by the government, it’s a favourite for safe, goal-based saving like retirement or a child’s education.
Key PPF features at a glance
| Feature | Detail |
|---|---|
| Interest rate | 7.1% p.a. (revised quarterly by govt) |
| Yearly deposit | Min ₹500 · Max ₹1.5 lakh |
| Tenure | 15 years, extendable in 5-year blocks |
| Tax status | EEE — fully tax-free |
| Partial withdrawal | Allowed from year 7 |
| Loan facility | Available between years 3 and 6 |
The tax advantage: EEE
PPF enjoys the rare EEE (Exempt-Exempt-Exempt) status, which makes it one of the most tax-efficient options in India:
- Exempt on investment — deposits qualify for a Section 80C deduction of up to ₹1.5 lakh (old regime).
- Exempt on interest — the interest you earn is entirely tax-free.
- Exempt on maturity — the full amount you withdraw at the end is tax-free.
PPF vs ELSS: safety or growth?
| PPF | ELSS | |
|---|---|---|
| Returns | Fixed ~7.1%, guaranteed | Market-linked, potentially higher |
| Risk | None (govt-backed) | Equity market risk |
| Lock-in | 15 years | 3 years |
| Tax on returns | Fully tax-free | LTCG 12.5% above ₹1.25L/yr |
They aren’t rivals — many investors use both: PPF for the safe, tax-free core, and ELSS via a SIP for growth. Compare the two with our SIP calculator, and see where PPF fits among the best investment options for salaried people.
Frequently asked questions
What is the current PPF interest rate?
The PPF rate is 7.1% per annum, set by the government and reviewed every quarter. Interest is compounded annually and credited at the end of each financial year.
How much can I invest in PPF per year?
Between ₹500 and ₹1.5 lakh per financial year, as a lump sum or in instalments.
Is the PPF maturity amount taxable?
No. Thanks to EEE status, the interest and the maturity amount are both completely tax-free, and deposits also give you an 80C deduction under the old regime.
Can I withdraw from PPF before 15 years?
Partial withdrawals are allowed from the 7th year, and a loan facility is available between years 3 and 6. Full withdrawal is on maturity at 15 years, after which you can extend in 5-year blocks.
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