PPF Calculator

YEARLY DEPOSIT
Max Limit: 150,000/Year
TIME PERIOD (YEARS)
Min Lock-in: 15 Years
INTEREST RATE (%)
Current Gov Rate (Fixed)
Maturity Amount
0
Total Invested0
Total Interest0

What is Public Provident Fund (PPF)?

The Public Provident Fund (PPF) is a long-term, government-backed savings scheme widely used for retirement planning and tax saving. It offers guaranteed returns and is considered one of the safest investment instruments available.

How to Use This Calculator

Calculate your returns in seconds:

  • Yearly Deposit: Enter the amount you plan to invest annually (Max limit is 150,000).
  • Time Period: Select the duration. The minimum mandatory lock-in period is 15 years.
  • Interest Rate: This is currently fixed by the government at 7.1% per annum.

Why is PPF so Popular? (EEE Benefit)

PPF falls under the Exempt-Exempt-Exempt (EEE) category, which makes it a tax haven for investors:

  • Investment is Tax-Free: The money you deposit (up to 150,000/year) is deductible under Section 80C.
  • Interest is Tax-Free: The interest earned every year is not taxed.
  • Maturity is Tax-Free: The final amount you withdraw after 15 years is completely tax-free.

PPF Rules & Facts

  • Lock-in Period: 15 Years (Can be extended in blocks of 5 years indefinitely).
  • Min Investment: 500 per financial year.
  • Max Investment: 150,000 per financial year.
  • Interest Calculation: Interest is calculated on the lowest balance between the 5th and the last day of the month. (Tip: Deposit before the 5th of the month!)

Formula Used

The formula for PPF calculation is:

A = P [({(1+i)^n} - 1) / i]

Where: A = Maturity Amount, P = Annual Installment, n = Number of years, i = Rate of interest/100.

Frequently Asked Questions (FAQ)

Partial withdrawals are allowed from the 7th financial year onwards. However, you can only withdraw a specific percentage of your balance. Premature closure is allowed only in extreme cases (like medical emergencies) after 5 years.

Yes, PPF is considered one of the safest investments because it is backed by the Central Government (Sovereign Guarantee). Your capital and interest are fully protected against market volatility.

Yes. Upon maturity, you can extend your PPF account in blocks of 5 years. You can choose to extend with or without making further contributions while continuing to earn interest.

The minimum annual deposit required to keep the account active is 500. The maximum investment allowed per financial year is 150,000.

Interest is calculated on the lowest balance in your account between the 5th day and the last day of the month. Therefore, to maximize returns, it is recommended to deposit money before the 5th of any month.