Estimate your PPF maturity value and interest. The best tax-saving investment under Section 80C with a 15-year tenure and guaranteed returns.
The Public Provident Fund (PPF) is a government-backed, long-term savings scheme offered by the Government of India. It is one of the most popular tax-saving investments because the contributions are eligible for deduction under Section 80C of the Income Tax Act (up to ₹1.5 lakh per year), the interest earned is tax-free, and the maturity amount is entirely exempt from tax.
PPF has a fixed tenure of 15 years, requiring a minimum annual investment of ₹500 and a maximum of ₹1,50,000 per financial year. The interest rate is set quarterly by the Ministry of Finance and compounds annually. This calculator shows you how your investment grows with yearly compounding and helps you plan your annual contributions to maximize your maturity value.
PPF interest is compounded annually on the lowest balance between the 5th and last day of the month (for contributions made in that month). The effective annual rate is compounded yearly:
Balance Year N = (Balance N-1 + Annual Deposit) × (1 + Rate/100)
Because contributions and interest are tax-free and compound at a guaranteed government rate, PPF is an excellent cornerstone of a low-risk, long-term Indian investment portfolio — often recommended before higher-risk equity markets.
Yes. PPF enjoys the EEE (Exempt-Exempt-Exempt) status: contributions are deductible up to ₹1.5 lakh under Section 80C, the annual interest is tax-free, and the entire maturity amount is exempt from tax. This makes PPF one of the most tax-efficient investments available to Indian residents.
Yes, you can extend your PPF account beyond 15 years in blocks of 5 years, with or without additional contributions. If you extend without contributing, the existing balance continues to earn interest. If you contribute, you continue to enjoy Section 80C deductions. Extension is a great way to keep building a tax-free corpus.
Yes, from the 7th financial year onwards, you can withdraw up to 50% of the balance in your PPF account as of the end of the 4th preceding financial year, once per financial year. Full premature closure is generally not permitted except under special circumstances such as serious illness, higher education, or change of residence.