ganak.appPPF Calculator
PPF Maturity & Interest Calculator
Yearly view – Cumulative invested vs interest earned
| Year | Invested | Interest | Balance |
|---|---|---|---|
| 1 | ₹10,000 | ₹710 | ₹10,710 |
| 2 | ₹20,000 | ₹2,180 | ₹22,180 |
| 3 | ₹30,000 | ₹4,465 | ₹34,465 |
| 4 | ₹40,000 | ₹7,622 | ₹47,622 |
| 5 | ₹50,000 | ₹11,713 | ₹61,713 |
| 6 | ₹60,000 | ₹16,805 | ₹76,805 |
| 7 | ₹70,000 | ₹22,968 | ₹92,968 |
| 8 | ₹80,000 | ₹30,279 | ₹1,10,279 |
| 9 | ₹90,000 | ₹38,819 | ₹1,28,819 |
| 10 | ₹1,00,000 | ₹48,675 | ₹1,48,675 |
| 11 | ₹1,10,000 | ₹59,941 | ₹1,69,941 |
| 12 | ₹1,20,000 | ₹72,717 | ₹1,92,717 |
| 13 | ₹1,30,000 | ₹87,110 | ₹2,17,110 |
| 14 | ₹1,40,000 | ₹1,03,234 | ₹2,43,234 |
| 15 | ₹1,50,000 | ₹1,21,214 | ₹2,71,214 |
PPF stands for Public Provident Fund — a long-term, government-supported savings scheme designed to facilitate secure wealth accumulation over a period of 15 years. It is widely utilised due to its tax-free returns, tax-deductible contributions, and its status as a fully secure investment. The maximum permissible contribution is ₹1.5 lakh per financial year; only this amount accrues interest, and contributions exceeding this threshold are not eligible for interest accrual.
Contributions made annually to a PPF account accrue interest each year. Over time, the power of compounding significantly enhances the growth of the accumulated balance.
A PPF account can be opened at any authorised bank or post office across India.
PPF earns compound interest, which is calculated monthly and credited annually on March 31. Interest is calculated on the lowest balance between the 5th and last day of every month. This monthly compounding makes PPF more effective than simple annual compounding.
The maturity amount depends on:
- Yearly contribution
- Interest rate (set by Government, usually updated quarterly)
- Tenure (15 years, extendable in blocks of 5 years)
- Contribution timing (earlier contributions earn more interest)
PPF uses monthly compounding: each year's contribution compounds monthly at the rate of (annual rate ÷ 12), and the interest is credited annually.
Balance = (Balance + Contribution) × (1 + r/12)^12Contribution = Annual deposit (made at start of each year)
r = Annual interest rate (current PPF rate: 7.1% p.a.)
r/12 = Monthly interest rate (7.1% ÷ 12 = 0.5917% per month)
12 = Compounding periods per year (monthly compounding)
Each year's contribution compounds monthly, and interest is credited annually. This monthly compounding results in higher returns compared to annual compounding.
Example:
If you deposit ₹1.5 lakh every year at 7.1% for 15 years:
Maturity Amount: ₹40,68,209 (approx)
Total Interest Earned: ₹18,18,209
Total Investment: ₹22,50,000
PPF works beautifully because monthly compounding accelerates growth, especially in the later years.
1. Invest Before the 5th of Every Month
Interest is calculated on the lowest balance of the month. If you deposit after the 5th, you lose interest for that month.
2. Deposit Full Amount at the Start of the Year
A lump-sum deposit in April earns the most interest over time.
3. Use the Full ₹1.5 Lakh Limit
To maximize long-term compounding, stay consistent every year.
4. Extend Your Account
After 15 years, you can: Keep it running without adding money, extend in 5-year blocks, or withdraw partially every year.
| Feature | PPF | FD | NPS |
|---|---|---|---|
| Risk | Very low | Low | Moderate |
| Returns | 7.1% (tax-free) | 6–8% | 8–12% |
| Lock-in | 15 years | 7 days – 10 yrs | Till retirement |
| Tax on maturity | Tax-free | Fully taxable | Partially taxable |
PPF is ideal for people who want guaranteed, tax-free long-term growth.
Allowed from Year 6 onward
- Maximum withdrawal: up to 50% of previous balance
- One withdrawal per financial year
Allowed only in specific cases:
- Serious illness
- Higher education
- Change of residency status
Penalty: 1% lower interest.