PPF Calculator 2026: Public Provident Fund Online
Calculate your Public Provident Fund (PPF) maturity value, total tax-free returns, and interest accrued. Defaulted to the latest 2026 interest rate of 7.1% per annum.
PPF Interest & Maturity Calculator
Select your deposit frequency (Monthly or Yearly) and adjust the sliders to project the growth of your tax-free government-backed PPF corpus.
Public Provident Fund (PPF)
Guaranteed Retirement Planner
PPF Year-by-Year Growth Ledger
Track the yearly compounding effect on your Public Provident Fund account. The ledger details opening balances, contributions, tax-free interest credits, and year-end closing balances.
| Year | Opening Balance | Contributions | Interest Credited | Closing Balance |
|---|---|---|---|---|
| 1 | ₹0 | ₹1,20,000 | +₹4,615 | ₹1,24,615 |
| 2 | ₹1,24,615 | ₹1,20,000 | +₹13,463 | ₹2,58,078 |
| 3 | ₹2,58,078 | ₹1,20,000 | +₹22,939 | ₹4,01,016 |
| 4 | ₹4,01,016 | ₹1,20,000 | +₹33,087 | ₹5,54,103 |
| 5 | ₹5,54,103 | ₹1,20,000 | +₹43,956 | ₹7,18,060 |
| 6 | ₹7,18,060 | ₹1,20,000 | +₹55,597 | ₹8,93,657 |
| 7 | ₹8,93,657 | ₹1,20,000 | +₹68,065 | ₹10,81,722 |
| 8 | ₹10,81,722 | ₹1,20,000 | +₹81,417 | ₹12,83,139 |
| 9 | ₹12,83,139 | ₹1,20,000 | +₹95,718 | ₹14,98,857 |
| 10 | ₹14,98,857 | ₹1,20,000 | +₹1,11,034 | ₹17,29,890 |
| 11 | ₹17,29,890 | ₹1,20,000 | +₹1,27,437 | ₹19,77,328 |
| 12 | ₹19,77,328 | ₹1,20,000 | +₹1,45,005 | ₹22,42,333 |
| 13 | ₹22,42,333 | ₹1,20,000 | +₹1,63,821 | ₹25,26,154 |
| 14 | ₹25,26,154 | ₹1,20,000 | +₹1,83,972 | ₹28,30,125 |
| 15 | ₹28,30,125 | ₹1,20,000 | +₹2,05,554 | ₹31,55,679 |
What is a Public Provident Fund (PPF)?
The Public Provident Fund (PPF) is a highly popular, long-term savings-cum-investment instrument established by the Government of India under the National Savings Institute in 1968. It is designed to encourage savings among individuals and help them build a substantial retirement corpus. Backed fully by the Central Government, it carries zero default risk, making it one of the safest tax-saving instruments available to Indian resident citizens.
A primary draw of the PPF is its remarkable **EEE (Exempt-Exempt-Exempt)** tax status. Under this model, the initial contributions are eligible for a tax deduction, the interest accrued compounds tax-free, and the final maturity amount is completely exempt from income tax. With a statutory minimum tenure of 15 years, it enforces the compound growth discipline required to build long-term wealth, serving as a pillar for retirement and child education planning.
How is PPF Interest Calculated? The 5th of the Month Rule
PPF interest rates are announced quarterly by the Ministry of Finance. For the current financial year 2026, the rate is locked at **7.1% per annum**.
While the interest compounds **annually** on March 31st, it is actually calculated **monthly** using a specific rule that investors should pay close attention to:
The Critical PPF Rule:
Interest is computed on the **lowest balance** in the PPF account between the **5th and the last day of the month**.
This means if you make your monthly contribution on or before the 5th of the month, that month's deposit will immediately earn interest for that month. However, if you deposit on the 6th or later, that sum will not accrue interest until the next calendar month.
- Yearly Depositors: To maximize returns, yearly depositors should invest the full ₹1.5 Lakh lumpsum between **April 1st and April 5th** at the start of the financial year. This yields interest for all 12 months.
- Monthly Depositors: Always set up automated standing orders or transfers to execute on or before the **5th of every month**.
PPF Account Rules: Tenure, Extensions, and Withdrawals
The Public Provident Fund is governed by strict rules designed to preserve the long-term integrity of retirement assets:
- Minimum and Maximum Deposits:You must deposit a minimum of **₹500** per financial year to keep the account active. The maximum statutory limit is **₹1.5 Lakh** per financial year. Deposits exceeding ₹1.5 Lakh do not earn any interest and are ineligible for tax benefits.
- Lock-in Period & Tenure Extensions:The account has a mandatory lock-in period of **15 years**. Upon maturity, you can extend the account indefinitely in **blocks of 5 years** (with or without making fresh contributions).
- Partial Withdrawals:Partial withdrawals are permitted from the **7th financial year** onwards, subject to specific limits (up to 50% of the balance at the end of the 4th preceding year, or 50% of the balance at the end of the immediately preceding year, whichever is lower).
- Loans Against PPF:You can apply for a loan against your PPF balance between the **3rd and 6th financial year** of opening the account. The interest rate charged is 1% p.a. above the prevailing PPF rate.
PPF vs. EPF vs. NPS vs. ELSS: A Comparative Evaluation
Here is how PPF compares with other popular tax-saving options in India under Section 80C and Section 80CCD:
| Metric | PPF (Public Provident Fund) | EPF (Employee Provident Fund) | NPS (National Pension System) | ELSS (Equity Linked Savings Scheme) |
|---|---|---|---|---|
| Risk Profile | Low (Sovereign guarantee) | Low (Sovereign guarantee) | Market-Linked (Moderate to High) | Market-Linked (High) |
| Return Rate (2026) | 7.1% p.a. (Fixed) | 8.25% p.a. (Fixed) | Variable (Typically 9% - 12%) | Variable (Typically 12% - 15%) |
| Lock-in Period | 15 Years | Till Retirement | Till age 60 | 3 Years |
| Tax Treatment | EEE (Exempt-Exempt-Exempt) | EEE (Exempt-Exempt-Exempt) | EET (60% lumpsum withdrawal tax-free) | LTCG rules apply at redemption (12.5%) |
Tax Advantages under the Exempt-Exempt-Exempt (EEE) Model
The EEE model is the gold standard of tax-efficient investing in India, and PPF is one of the very few instruments that enjoys this status:
- Exempt Stage 1 (Investment):Contributions made to a PPF account are eligible for deduction from your taxable income up to a limit of **₹1,50,000** per financial year under Section 80C (applicable under the Old Tax Regime).
- Exempt Stage 2 (Accumulation):The compounding interest credited to your account every year is completely tax-free. Unlike fixed deposit interest, which is taxed yearly at your slab rates, you pay ₹0 tax on PPF interest growth.
- Exempt Stage 3 (Withdrawal):When the 15-year tenure completes, the entire maturity corpus (contributions + total accumulated interest) is distributed to you completely tax-exempt.
Frequently Asked Questions (FAQs)
Can an NRI open a PPF account in India?
Non-Resident Indians (NRIs) are not permitted to open a new PPF account in India. However, if an individual opened a PPF account while they were a resident citizen and subsequently became an NRI, they are allowed to continue contributing to the account on a non-repatriation basis until the 15-year maturity lock-in completes. The account cannot be extended further.
What is the maximum limit for PPF contributions per year?
The maximum contribution allowed is ₹1,50,000 per financial year. This limit includes deposits made in your own account as well as accounts opened in the name of your minor children. Any deposit exceeding ₹1.5 Lakhs in a year will not earn interest and will not qualify for Section 80C deductions.
What happens if I fail to make the minimum deposit of ₹500 in a year?
If you do not deposit the minimum ₹500 in a financial year, your PPF account will be designated as "discontinued" or deactivated. You cannot take loans or make withdrawals from a discontinued account. To reactivate it, you must pay a penalty of ₹50 for each year of default along with a minimum deposit of ₹500 for each lapsed year.
Can I extend my PPF account after the 15-year tenure?
Yes, you can extend your PPF account indefinitely in blocks of 5 years at a time. To extend, you must submit Form H (in case of extension with contributions) to the bank or post office within one year of the maturity date. Alternatively, you can let the account extend automatically without fresh contributions, where it will continue to earn interest on the balance.
Is interest earned on PPF taxable in India?
No. PPF interest is completely tax-free. Under Section 10(11) of the Income Tax Act, the interest earned and the final maturity amount are exempt from income tax, making it a key EEE investment.
Can I open a PPF account in the name of my child?
Yes, you can open a PPF account in the name of a minor child, with either parent acting as the guardian. Only one parent can be the guardian, and the combined deposits made into your own PPF account and the minor child's account cannot exceed ₹1.5 Lakhs per financial year.
Can a PPF account be attached by a court order?
A PPF account balance cannot be attached by any court decree or order in respect of any debt or liability incurred by the account holder. This protection makes it a highly secure wealth preservation tool. However, it can be attached by the Income Tax Department for tax defaults.
What is the penalty if I close my PPF account early?
Premature closure of a PPF account is allowed only after 5 financial years under specific conditions, such as treatment for life-threatening ailments of the account holder or family members, or higher education expenses. A penalty of 1% is deducted from the interest rate applicable for the duration of the account.
Rohit Kushwaha
Software Engineer & Creator of mysalarycalculator.in
I'm Rohit Kushwaha, a Software Engineer with 3+ years of experience in developing web applications and digital solutions. By combining technology with practical financial tools, I built mysalarycalculator.in to help Indian professionals easily understand their salary, taxes, EPF, gratuity, and take-home income.
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