Worked example
Example with the default numbers — change them above.
Deposit per year: ₹1,50,000 · When you deposit: Once a year, by 5 April · After 15 years: Close at maturity (15 years)
Depositing ₹1.5 L a year in PPF for 15 years at 7.1%, your account becomes ₹40.68 L, of which ₹18.18 L is interest.
| Maturity value | ₹40.68 L · After 15 years |
|---|---|
| Total you deposit | ₹22.5 L · ₹1,50,000 a year |
| Interest earned | ₹18.18 L · 45% of the final amount |
| Gain from depositing by 5 April | ₹1.24 L · versus paying in 12 monthly parts |
How the PPF Calculator works
- Pick how much you deposit in a financial year (between ₹500 and ₹1,50,000) and whether it goes in once by 5 April or in twelve parts by the 5th of each month.
- For every month, the calculator takes your lowest balance between the 5th and the last day of the month and applies one twelfth of the yearly rate to it.
- The twelve monthly interest amounts are added up and credited to the account on 31 March, so from the next year that interest earns interest too.
- This repeats for 15 years, plus any 5-year extensions you choose, with or without further deposits.
- The result shows the final balance, what you deposited, what you earned, and a table you can read year by year or month by month.
How PPF interest is worked out
Monthly interest = lowest balance between the 5th and month-end × (annual rate ÷ 12)
Yearly interest = sum of the 12 monthly amounts, credited on 31 March
Next year's opening balance = this year's closing balance (deposits + credited interest)
Deposit by the 5th: it counts for that month. Deposit after the 5th: it counts from the next month.Assumptions and limits
- The rate stays at the value shown for all years. In reality the government resets the PPF rate every quarter, and the new rate applies to your whole balance.
- The yearly deposit is capped at ₹1,50,000 and should be at least ₹500 in every financial year, as per scheme rules. Amounts above the limit are ignored, not carried forward.
- Interest is calculated on the lowest balance between the 5th and the end of each month. A deposit made after the 5th starts earning only from the following month.
- Deposits are assumed to be made on time every year, starting in the first month of a financial year. Opening the account part-way through a year gives a slightly lower first-year interest.
- PPF is counted here as 15 years of deposits and interest, the usual way it is quoted. Under the scheme the 15 years run from the end of the financial year in which you open the account, so a real account runs for the year of opening plus 15 more, up to 16 financial years in all.
- Deposits are in multiples of ₹50, and the ₹1,50,000 yearly limit covers your own account plus any account you hold for a minor. A second PPF account in your name earns no interest.
- Interest is shown to the paisa; the post office credits it in whole rupees, so a real balance can differ by a few rupees.
- PPF interest and the maturity amount are tax-free under current rules, and deposits may qualify for a deduction under the old tax regime. Confirm the latest tax rules before relying on this.
- Partial withdrawals, loans against the balance and premature closure are not modelled.
Frequently asked questions
How do I calculate PPF maturity amount?
For each month, take the lowest balance between the 5th and month-end and multiply by the annual rate divided by 12. Add the twelve months and credit them on 31 March. Repeat every year. For example, ₹1,50,000 deposited by 5 April each year for 15 years at 7.1% grows to about ₹40.68 L.
What is the current PPF interest rate?
The PPF rate is 7.1% a year for Q3 FY2026-27, effective 1 October 2026. The Finance Ministry reviews small-savings rates every quarter, so the next change could come around 1 January 2027. Because the PPF rate floats, the latest notified rate applies to your whole existing balance, not only to new deposits. We last checked this rate on 21 October 2026; confirm with India Post or your bank before you invest.
Do I pay tax on PPF interest or the maturity amount?
Under current rules, interest earned in a PPF account and the amount received at maturity are exempt from income tax. Deposits can be claimed as a deduction under Section 80C (now section 123 of the Income-tax Act, 2025), but only if you choose the old tax regime. Tax rules change with each Budget, so check the latest position or ask a tax professional.
What is the minimum and maximum PPF deposit per year?
You must deposit at least ₹500 in each financial year to keep the account active, and the maximum is ₹1,50,000. Money above the maximum is not accepted for interest. If you enter a larger amount in this calculator, it is reduced to the maximum and a note is shown.
Why should I deposit in PPF before the 5th of the month?
PPF interest is worked out on the lowest balance between the 5th and the last day of the month. A deposit made by the 5th is part of that balance and earns interest for the month. A deposit on the 6th or later misses it. If you deposit once a year, paying by 5 April earns interest for all twelve months.
Can I extend PPF after 15 years?
Yes. After 15 years you can extend the account in blocks of 5 years, either with fresh deposits up to the yearly limit or without deposits, in which case the balance simply keeps earning interest. To keep depositing, apply in Form 4 within one year of maturity. Otherwise the account carries on without deposits (still earning interest) and cannot take deposits again after that first year.
Can I withdraw money from PPF before maturity?
Partly. Partial withdrawals are allowed from the seventh financial year, up to a share of the balance, and loans against the balance are possible in the early years. Premature closure is allowed only for specified reasons after five years. PPF is meant for long-term savings, so check the current withdrawal rules before depending on it.
Sources
- National Savings Institute (Ministry of Finance): Public Provident Fund scheme details
- India Post: current interest rates on post office savings schemes
- Income Tax Department: Income-tax Act, 2025, section 123 – ₹1.5 lakh deduction for specified savings (old section 80C)
Logic and rates last verified on .
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Guides that go deeper
See worked examples
What common PPF, Sukanya Samriddhi, NSC and bank FD amounts grow to at current rates.
- How much will ₹25,000 a year in PPF become after 15 years? — Matures at ₹6.78 L
- How much will ₹50,000 a year in PPF become after 15 years? — Matures at ₹13.56 L
- How much will ₹1 lakh a year in PPF become after 15 years? — Matures at ₹27.12 L