What is the Public Provident Fund (PPF)?

The Public Provident Fund (PPF) is a highly secure, government-backed savings scheme in India. It offers guaranteed interest returns, tax exemptions on interest earned, and deductions under Section 80C, making it a popular choice for long-term retirement planning.

What is the current PPF interest rate?

The PPF interest rate is declared quarterly by the Government of India. The current rate is 7.10% per annum, compounded annually. Interest is calculated on the minimum balance between the 5th day and the end of each month.

How does the PPF tax exemption work?

PPF falls under the Exempt-Exempt-Exempt (EEE) category. This means: (1) Your annual deposits qualify for tax deduction under Section 80C, (2) The interest earned is fully tax-exempt, and (3) The entire maturity amount is exempt from wealth and income tax.

Can I extend my PPF account after the 15-year maturity?

Yes, a PPF account can be extended indefinitely after the initial 15-year maturity period in blocks of 5 years. You can choose to extend with or without making fresh deposits.

PPF Calculator

Calculate your Public Provident Fund maturity amount, interest earned, and tax benefits instantly.

PPF Account Parameters

Yearly Investment (₹)

₹

*Min ₹500, Max ₹1.5 Lakh per financial year

Annual Interest Rate (%)

*PPF interest rate is fixed quarterly by the Govt. of India

Tenure (Years)

Yrs

*Initial lock-in is 15 years, extendable in blocks of 5 years

Maturity Summary

Invested Amount

₹0

Interest Earned

₹0

Total Maturity Amount

₹0

Year	Amount Invested	Interest Earned	Maturity Value

How to Use This PPF Calculator

Using our online ppf calculator is very simple. Set your desired yearly investment amount (minimum ₹500, maximum ₹1,50,000 per year) and select your tenure in years. The calculator will instantly display your total contributions, total interest, and final maturity amount based on the standard PPF rules.

To compare this scheme with other safe investments, you can check our FD Calculator. If you are comfortable with market risks for potentially higher returns, check out our mutual fund SIP Calculator.

PPF Scheme Interest Rate and EEE Tax Exemption

The Public Provident Fund is highly valued because it carries the coveted EEE (Exempt-Exempt-Exempt) tax status. This makes it a crucial tool for financial planning:

Deductions: Deposits up to ₹1.5 lakh are tax-exempt under Section 80C.
Interest Exemptions: All interest accumulated in your PPF account is fully exempt from tax.
Maturity Exemptions: The final lump sum you receive at maturity is also tax-free.

The ppf scheme interest rate tax exemption ensures that you build tax-free wealth over a long-term timeline. To check official interest rates and guidelines, refer to the official India Post portal or major banking guidelines.

Frequently Asked Questions

What is a PPF calculator?

A ppf calculator is an online financial tool that helps you calculate your PPF maturity value, total deposits, and interest earned over a chosen period based on government-specified interest rates.

How does a PPF account calculator compound returns?

A ppf account calculator uses the annual compounding interest method. Interest is calculated monthly on the lowest balance between the 5th day and the end of the month, but it is credited to your PPF account once a year on March 31st.

How is PPF interest calculated using the ppf interest calculator?

Our ppf interest calculator compiles interest annually. The formula applied is: F = A × [((1 + i)^n - 1) / i] × (1 + i), assuming contributions are made at the start of each financial year for maximum compounding benefit.

Can I deposit more than ₹1.5 Lakh in my PPF account?

No. The maximum deposit limit in a PPF account is ₹1.5 Lakh per financial year. If you deposit more, the excess amount will not earn any interest and will not qualify for tax benefits under Section 80C.