PPF Calculator
Public Provident Fund maturity at the current 7.1% rate — 15-year lock-in with optional 5-year extensions. Fully tax-free (EEE).
Year-by-year PPF balance
| Year | Deposited | Interest | Balance |
|---|
How PPF interest works
Interest is calculated monthly on the lowest balance between the 5th and the end of the month, credited annually. To earn interest for the full month, deposit before the 5th — ideally the full ₹1.5 lakh before 5 April each year. This calculator assumes start-of-year deposits (the optimal strategy):
Balance(year) = [Balance(year−1) + Deposit] × (1 + 7.1%)
PPF's real power is its EEE status: deduction on deposit (80C, old regime), tax-free interest, tax-free maturity. A 7.1% tax-free return equals roughly a 10.1% pre-tax FD return for someone in the 30% bracket.
PPF FAQs
Can I withdraw before 15 years?
Partial withdrawals are allowed from year 7 (up to 50% of the balance 4 years prior). Loans against PPF are available from years 3–6. Full premature closure is allowed after 5 years only for specific reasons (medical, education) with a 1% rate penalty.
What happens after 15 years?
Three options: withdraw everything tax-free, extend 5 years with fresh deposits (submit Form H), or extend without deposits — the balance keeps earning tax-free interest, and one withdrawal per year is allowed.
Can I open PPF for my child?
Yes, a guardian can open a minor's account, but the combined 80C limit of ₹1.5 lakh deposit per year applies across your own and the minor's account.