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PPF Calculator
Calculate your Public Provident Fund (PPF) returns, view year-wise interest, and understand tax benefits. Plan your long-term savings with India's most trusted government-backed scheme.
100% Safe Government-backed scheme with guaranteed returns and sovereign guarantee.
Tax-Free Returns EEE status: Investment, interest, and maturity - all tax-free!
Smart Planning Calculate returns, compare investments, and plan extensions easily.
Public Provident Fund (PPF) is a long-term savings and investment scheme introduced by the Government of India in 1968. It is designed to help individuals build a retirement corpus while enjoying tax benefits and guaranteed returns.
PPF is one of the most popular investment options in India due to its safety (backed by the Government), tax advantages (EEE status), and competitive interest rates. The interest rate is revised quarterly by the government and compounds annually.
Key Features
Minimum Investment: ₹500 per year
Maximum Investment: ₹1,50,000 per year
Lock-in Period: 15 years
Interest Rate: ~7.1% p.a. (Q1 2024)
Tax Benefit (80C): Up to ₹1,50,000 deduction
Interest: Tax-free
Maturity Amount: Tax-free
Extension: In blocks of 5 years
How to Open a PPF Account
Opening a PPF account is simple and can be done at:
Any branch of a nationalized bank (SBI, PNB, Bank of Baroda, etc.)
Select private banks (ICICI Bank, HDFC Bank, Axis Bank, etc.)
Post offices across India
Online through netbanking (for existing bank customers)
Documents Required: PAN Card, Aadhaar Card, Address Proof, Passport-sized photographs, and a duly filled application form.
Benefits of PPF
Triple Tax Benefit (EEE)
Investment qualifies for deduction under Section 80C, interest earned is tax-free, and maturity amount is completely tax-free.
Government Guarantee
Your money is 100% safe with sovereign guarantee. No risk of default or loss of principal.
Competitive Interest Rate
Interest rate is higher than most savings accounts and comparable to FDs, with the added advantage of being tax-free.
Flexible Contributions
You can invest from ₹500 to ₹1,50,000 per year in lump sum or installments (maximum 12 per year).
Loan Facility
You can take a loan against your PPF balance from the 3rd to 6th year of opening the account.
Partial Withdrawal
Allowed from the 7th year onwards for specific purposes like medical emergencies, education, or home purchase.
Nomination Facility
You can nominate one or more persons to receive the PPF balance in case of your demise.
Best Ways to Invest in PPF
1. Start Early: The power of compounding works best over long periods. Starting in your 20s or 30s gives maximum benefit.
2. Invest Maximum Amount: Try to invest ₹1,50,000 annually to maximize tax benefits and returns.
3. Invest at the Start of the Year: PPF interest is calculated on the minimum balance between the 5th and last day of each month. Investing early maximizes interest.
4. Use for Long-term Goals: Best suited for retirement planning, children's education, or buying a house.
5. Extend After Maturity: After 15 years, consider extending in 5-year blocks to continue earning tax-free returns.
6. Combine with Other 80C Instruments: Use PPF along with ELSS, NPS, and insurance for diversified tax planning.
7. Open Joint Accounts: You can open separate accounts for spouse and children to multiply tax benefits.
Tax Implications & Benefits
Section 80C Deduction: Investment up to ₹1,50,000 per financial year is eligible for tax deduction under Section 80C of the Income Tax Act. This reduces your taxable income.
Example: If you are in the 30% tax bracket and invest ₹1,50,000 in PPF, you save ₹46,800 in taxes (₹1,50,000 × 30% + 4% cess).
Tax-Free Interest: The interest earned on PPF is completely tax-free. Unlike bank FDs where interest is added to your income and taxed, PPF interest goes straight to your pocket.
Tax-Free Maturity: When your PPF matures, the entire corpus (principal + interest) is received tax-free. This makes it one of the most tax-efficient investment options.
Comparison: A bank FD at 7% pre-tax for someone in 30% bracket gives only 4.9% post-tax return. PPF at 7.1% gives the full 7.1% post-tax return, making it significantly better!
💡 Pro Tip: Use the calculator above to see how much tax you can save over the investment period by selecting your tax bracket!
⚠️ Important Points to Remember
PPF interest rates are subject to change quarterly by the Government of India
Premature closure is allowed only in specific cases like medical emergency or higher education
Only one PPF account is allowed per individual (including minor accounts)
Account becomes inactive if minimum ₹500 is not deposited in a year (can be reactivated with penalty)
Maximum 12 deposits allowed per year, but one annual deposit of ₹1,50,000 is also acceptable
PPF accounts opened before December 2019 follow older extension rules