Arthneeti

PPF Calculator

Estimate your Public Provident Fund maturity amount

₹
%
Yr
Maturity Value₹40.68 L
Total invested
Interest earned
Total invested₹22.50 L
Interest earned₹18.18 L
Maturity value₹40.68 L

What is PPF?

The Public Provident Fund (PPF) is one of India's most trusted long-term savings instruments, backed by the Government of India. Introduced in 1968, PPF offers a unique combination of safety, tax efficiency, and decent returns that no other fixed-income product can match. PPF enjoys the EEE (Exempt-Exempt-Exempt) tax status, meaning your investment qualifies for Section 80C deduction, the interest earned is tax-free, and the maturity amount is completely tax-free. With a current rate of 7.1% compounded annually, the post-tax effective return for someone in the 30% tax bracket is equivalent to earning around 10% pre-tax. PPF is an essential component of every Indian investor's debt portfolio, providing a stable, risk-free foundation alongside equity investments.

Frequently Asked Questions

What is PPF and who should invest in it?▾
PPF (Public Provident Fund) is a government-backed long-term savings scheme in India with a 15-year lock-in period. It is ideal for conservative investors who want guaranteed, tax-free returns with sovereign safety. PPF is especially attractive for investors in the 30% tax bracket because the interest earned is entirely tax-free, making the effective post-tax return significantly higher than fixed deposits. It falls under the EEE (Exempt-Exempt-Exempt) tax category, meaning the investment, interest, and maturity amount are all tax-free.
What is the current PPF interest rate?▾
The PPF interest rate is set by the Government of India and is revised quarterly. As of 2024-25, the PPF interest rate is 7.1% per annum, compounded annually. This rate has remained unchanged since April 2020. The rate is linked to the yield on government securities (G-Sec) with a markup. While 7.1% may seem low compared to equity returns, the tax-free nature makes the effective return equivalent to about 10-10.5% pre-tax for someone in the 30% tax bracket.
What are the PPF investment limits?▾
The minimum annual investment in PPF is ₹500 and the maximum is ₹1,50,000 per financial year. You can invest in lump sum or in up to 12 instalments per year. Investments up to ₹1.5 lakh qualify for tax deduction under Section 80C. If you invest more than ₹1.5 lakh, the excess amount will not earn any interest and will be returned. The investment must be made in a single PPF account — you cannot hold multiple PPF accounts (except one in your name and one as guardian for a minor child).
Can I withdraw from PPF before maturity?▾
Partial withdrawal from PPF is allowed from the 7th financial year onwards (after completing 5 full financial years). You can withdraw up to 50% of the balance at the end of the 4th preceding year or the immediately preceding year, whichever is lower. You can also take a loan against your PPF balance from the 3rd to 6th financial year at an interest rate of 1% above the PPF rate. Premature closure is allowed only in specific cases like serious illness, higher education, or change of residency status (NRI).
What happens to PPF after 15 years?▾
After the initial 15-year maturity period, you have three options: (1) Withdraw the entire maturity amount tax-free. (2) Extend in blocks of 5 years with fresh contributions — you continue investing up to ₹1.5 lakh/year and get the prevailing PPF interest rate. (3) Extend without contributions — your existing balance continues to earn interest, and you can make one withdrawal per year. Option 3 is popular among retirees who want a safe, tax-free income source. There is no limit on the number of 5-year extensions.

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