The Public Provident Fund is a government-backed, long-term savings scheme with a 15-year lock-in, tax-free interest, and contributions eligible for deduction under Section 80C. Because the interest rate is set by the government every quarter and the returns are entirely tax-free, PPF remains one of the safest long-term debt instruments available to Indian residents.
Enter your planned yearly contribution (up to the ₹1.5 lakh annual limit), the current interest rate, and your intended tenure to estimate the maturity value.
PPF Calculator
Project the maturity value of your Public Provident Fund account.
PPF interest is compounded annually and set by the government every quarter (currently 7.1% p.a. for Jan-Mar 2026); actual rate may change. Maximum annual contribution allowed is ₹1.5 lakh. Tenure extends in blocks of 5 years after the initial 15.
How PPF interest is calculated
This calculator uses annual compounding on a yearly contribution, using the annuity formula FV = P × [((1+r)^n − 1)/r] × (1+r). In practice, PPF interest is credited annually but computed monthly on the lowest balance between the 5th and last day of each month, so contributing early in the financial year (ideally by the 5th of April) maximises the interest you actually earn compared to contributing late in the year.
PPF tenure and extension
A PPF account has a mandatory lock-in of 15 years, after which it can be extended in blocks of 5 years, either with further contributions or without. Because interest compounds for longer, extending a PPF account for another 5 or 10 years after maturity, rather than withdrawing, can meaningfully increase the final tax-free corpus.
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Frequently asked questions
What is the current PPF interest rate?
The PPF interest rate is set by the government every quarter. As of the January-March 2026 quarter it stands at 7.1% per annum, compounded annually; always check the latest rate before relying on projections for your own planning.
Is PPF interest and maturity amount taxable?
No. PPF falls under the EEE (Exempt-Exempt-Exempt) tax category — contributions qualify for Section 80C deduction, interest earned is tax-free, and the maturity amount is also tax-free.
What is the maximum I can invest in PPF each year?
The maximum annual contribution allowed is ₹1.5 lakh per financial year across all your PPF accounts; the minimum is ₹500 to keep the account active.