Updated June 2026

PPF Calculator

PPF is tax-free — that's the good news. The bad news? After 15 years of inflation, your ₹40 lakh corpus buys what ₹17 lakh buys today. See for yourself.

₹
%
Yrs

Tax-free (EEE) — PPF interest and maturity are completely tax-exempt. No TDS toggle needed.

Total Contributed
Interest Earned
Maturity Amount

₹40.68 L

Total Contributed

₹22.50 L

Interest Earned

₹18.18 L

Tax Saved (80C)

₹7.02 L

PPF Growth Over Time

₹0₹11.2L₹22.4L₹33.6L₹44.8L1Y3Y5Y7Y9Y11Y13Y15Y
PPF Balance
Contributed

Year-wise Breakdown

15 years
YearDepositInterestBalance
1₹1,50,000₹10,650₹1,60,650
2₹1,50,000₹22,056₹3,32,706
3₹1,50,000₹34,272₹5,16,978
4₹1,50,000₹47,355₹7,14,334
5₹1,50,000₹61,368₹9,25,701
6₹1,50,000₹76,375₹11,52,076
7₹1,50,000₹92,447₹13,94,524
8₹1,50,000₹1,09,661₹16,54,185
9₹1,50,000₹1,28,097₹19,32,282
10₹1,50,000₹1,47,842₹22,30,124
11₹1,50,000₹1,68,989₹25,49,113
12₹1,50,000₹1,91,637₹28,90,750
13₹1,50,000₹2,15,893₹32,56,643
14₹1,50,000₹2,41,872₹36,48,515
15₹1,50,000₹2,69,695₹40,68,209

How PPF Works

The Public Provident Fund is a government-backed long-term savings scheme with a 15-year maturity period. You can invest between ₹500 and ₹1,50,000 per financial year. Interest is compounded annually at a rate declared by the government each quarter (currently 7.1%).

PPF's Triple Tax Benefit (EEE)

PPF enjoys the rare EEE (Exempt-Exempt-Exempt) tax status:

  • Exempt 1: Contributions up to ₹1.5L/year get Section 80C deduction
  • Exempt 2: Interest earned is completely tax-free
  • Exempt 3: Maturity amount is fully tax-exempt

This makes PPF one of the most tax-efficient instruments in India. Unlike FD where 30% of your interest goes to tax, PPF lets you keep 100% of your returns.

The Inflation Reality of PPF

Despite being tax-free, PPF's 7.1% return barely beats 6% inflation — giving you only ~1% real return. Over 15 years, this compounds significantly:

  • ₹1.5L/year for 15 years → Maturity: ~₹40.68 lakh
  • After inflation adjustment: ~₹17 lakh in today's purchasing power
  • You contributed ₹22.5 lakh — so your real gain is only ~₹-5.5 lakh in purchasing power terms

This doesn't mean PPF is bad — it's the safest instrument with a guaranteed return. But it's crucial to understand that PPF alone won't beat inflation significantly for wealth creation.

PPF Contribution Strategy

To maximize PPF returns:

  • Invest before April 5th — PPF interest is calculated on the minimum balance between the 5th and end of each month
  • Invest the full ₹1.5L early — a lump sum on April 1st earns more than 12 monthly installments
  • Extend after 15 years — if you don't need the money, continue earning tax-free interest
  • Combine with equity — use PPF for the debt portion of your portfolio, SIP for growth

PPF vs Other Section 80C Options

All these compete for the same ₹1.5L 80C limit:

  • PPF: 7.1% guaranteed, 15-year lock-in, zero risk, EEE
  • ELSS: 12-15% historical, 3-year lock-in, equity risk, LTCG taxed
  • Tax-saving FD: 6.5-7%, 5-year lock-in, interest taxed at slab
  • NPS: 8-10% historical, locked till 60, partial taxability on exit

How to Use This PPF Calculator

  1. Enter your yearly contribution (₹500 to ₹1,50,000)
  2. Set the PPF rate (currently 7.1% — adjust if you expect changes)
  3. Choose tenure: 15 years minimum, extend in blocks of 5
  4. Toggle inflation to see the real purchasing power of your maturity amount
  5. The "Tax Saved" figure shows your cumulative 80C benefit at 31.2% effective rate

Frequently Asked Questions

What is PPF and how does it work?
Public Provident Fund (PPF) is a government-backed savings scheme with a 15-year lock-in period. You can invest ₹500 to ₹1.5 lakh per year. The current interest rate is 7.1% (compounded yearly). PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — contributions get 80C deduction, interest is tax-free, and maturity is tax-free.
What is the current PPF interest rate in 2026?
The PPF interest rate for Q1 FY2026-27 is 7.1% per annum, compounded yearly. The government reviews this rate quarterly, but it has remained at 7.1% since April 2020. While the rate can change, PPF historically offers 7-8%.
Can I extend PPF beyond 15 years?
Yes. After the initial 15-year maturity, you can extend your PPF in blocks of 5 years — with or without fresh contributions. With contributions: you continue investing and earning interest. Without contributions: the existing balance earns interest for 5 more years without any new deposits.
How much tax do I save with PPF?
PPF contributions up to ₹1.5 lakh/year qualify for Section 80C deduction. At 30% tax slab (+ 4% cess = 31.2% effective), investing ₹1.5L saves ₹46,800 in taxes annually. Over 15 years, that's ₹7.02 lakh in tax savings — essentially a bonus return on top of the 7.1% interest.
Is PPF better than FD?
For long-term savings, PPF is usually better than FD because: (1) PPF interest is tax-free while FD interest is taxable at slab rate, (2) PPF gives Section 80C deduction reducing effective cost, (3) Both give similar nominal rates (~7%). The catch: PPF has a 15-year lock-in while FD offers flexible tenures.
Can I withdraw from PPF before maturity?
Partial withdrawal is allowed from the 7th year onwards. You can withdraw up to 50% of the balance at the end of the 4th year or the preceding year, whichever is lower. Loans against PPF are available from the 3rd to 6th year. Full premature closure is only allowed in special cases (serious illness, higher education) after 5 years.
Why does PPF still lose to inflation?
At 7.1% interest and 6% inflation, PPF's real return is about 1%. Over 15 years, inflation erodes ~60% of your maturity amount's purchasing power. ₹40.68 lakh maturity (at ₹1.5L/year) is worth only ~₹17 lakh in today's terms. PPF is still better than FD (tax-free), but equity SIP beats it for long-term wealth creation.
Should I invest in PPF or ELSS?
Both offer 80C benefits. PPF: guaranteed 7.1%, 15-year lock-in, zero risk, tax-free. ELSS: market-linked (historically 12-15%), 3-year lock-in, equity risk, LTCG tax on gains > ₹1.25L. If you can handle volatility and have 5+ year horizon, ELSS typically gives better real returns. PPF is for the guaranteed-return-seeking investor.

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