Find the final amount of a PPF account.
PPF compounds annually — each year's contribution is added to the balance and the whole amount earns interest for the year.
Each year: (Balance + contribution) × (1 + rate)
The Public Provident Fund is a government-backed savings account with a long lock-in and tax-free interest. You can put in any amount within the yearly limits, and the balance compounds once a year. This calculator projects what a steady yearly contribution grows to over a chosen number of years at an assumed rate.
PPF is a favourite of salaried people and self-employed professionals alike, because it combines safety with tax benefits under the old regime. Parents often open one in their own name to build a fund for children's education, while freelancers use it as a retirement account in place of EPF. The calculator answers the planning question: if I put in this much every year, how big will my PPF be, and how much of it will be tax-free interest?
1. Choose the yearly contribution C, the interest rate r and the number of years n.
2. Start with a balance of zero.
3. For year one, add C to the balance and multiply by (1 + r ÷ 100).
4. Repeat for every year: new balance = (old balance + C) × (1 + r ÷ 100).
5. After n years, the balance is the maturity value. In closed form it equals C × (1 + i) × ((1 + i)^n − 1) ÷ i, where i = r ÷ 100.
6. Subtract C × n to find the total interest earned.
PPF interest is worked out monthly on the lowest balance between the fifth and last day of each month, and credited once at the end of the financial year. A deposit made on or before the fifth of April therefore earns interest for all twelve months. The calculator assumes exactly this: each year's contribution goes in at the start and earns a full year of interest. If you deposit later in the year, you earn less, so the calculator shows the best case for your contribution pattern.
Because each payment earns interest for its full year, the sum of all contributions is a series where the first grows for n years, the second for n − 1 years, and the last for one year. That is the future value of an annuity due. Factoring out C × (1 + i) leaves a geometric series whose sum is ((1 + i)^n − 1) ÷ i. The year-by-year loop in the calculator and this closed form give the same number, and writing it out shows why later years add so much more interest than early ones.
The government reviews the PPF rate every quarter. The calculator applies one rate for every year, which is a simplification. In reality, the rate that applies each quarter is used for that quarter's interest. Over fifteen years the rate may go up or down, so treat the result as an estimate. Running the calculator at a rate one point higher and one point lower gives a sensible range for planning.
Sneha, a freelance graphic designer in Pune, plans to put ₹60,000 into her PPF every April for the full 15-year term, assuming the rate stays at 7.1%.
Answer: Maturity amount ₹16,27,284; Total invested ₹9,00,000; Interest earned ₹7,27,284
Depositing in March each year and expecting the result shown here. Late deposits miss most of that year's interest.
Contributing above the yearly maximum, which earns no interest and is not eligible for a deduction.
Assuming the current rate is guaranteed for fifteen years.
Forgetting the minimum yearly deposit, which is needed to keep the account active.
Counting the PPF deduction under the new regime, which does not allow it.
Planning a tax-efficient retirement fund for self-employed people.
Building a long-term education fund for a child.
Comparing PPF with ELSS or an NPS tier-I account for long horizons.
Seeing how a higher yearly contribution changes the final tax-free corpus.
What is the current PPF interest rate?
7.1% per year. This rate has not changed since April 2020, and the government reviews it every three months.
Is PPF interest taxable?
No. PPF is called an EEE product, which means all three stages are tax-free: your deposits get a Section 80C deduction, the interest is tax-free, and the final amount is tax-free too.