Project your Public Provident Fund maturity at the current 7.1% rate (as of Q1 FY 2026-27 (verify quarterly notification)) — with a year-wise table, extension planning and fully tax-free interest.
How PPF interest is calculated
PPF interest is declared quarterly by the government (7.1% as of Q1 FY 2026-27 (verify quarterly notification)), calculated monthly on the lowest balance between the 5th and the end of the month, and credited once a year on 31 March. This calculator assumes each year's deposit goes in at the start of the year:
Each year: balance = (balance + deposit) × (1 + r)
That matches what a disciplined saver gets by depositing before 5 April. Deposit late in the year and your actual maturity will be somewhat lower — the timing FAQ below explains why.
Worked example: ₹1.5 lakh a year for 15 years
At 7.1%, full yearly deposits of ₹1,50,000 grow to ₹40,68,209 (₹40.68 lakh) at the end of the 15-year term. You contribute ₹22,50,000; the remaining ₹18,18,209 is interest — every rupee of it tax-free. The year-wise table above shows the balance crossing your total contributions around the midpoint of the term.
EEE: the tax story (FY 2025-26)
PPF is exempt-exempt-exempt: deposits qualify for the Section 80C deduction up to ₹1.5 lakh a year (old tax regime only — the new regime has no 80C), interest accrues tax-free, and the maturity payout is tax-free. Even if you use the new regime and get no 80C benefit, the tax-free 7.1% still beats a taxable FD at a higher headline rate for most slabs.
After 15 years: extension in 5-year blocks
Maturity is not the end. You can extend the account indefinitely in 5-year blocks — with fresh deposits (Form H within a year of maturity) or without. Without deposits, the balance simply keeps compounding at the notified rate, and you can withdraw freely once per year. Set the period input to 20, 25 or 30 years to model an extended account.
Liquidity before maturity
Loans are available from the 3rd to 6th year (up to 25% of the eligible balance). From the 7th year, one partial withdrawal per year is allowed, capped at 50% of the balance at the end of the 4th preceding year. Premature closure is restricted to specific grounds after 5 years and costs 1% of the rate.
Frequently Asked Questions
What is the current PPF interest rate?
7.1% per annum, as of Q1 FY 2026-27 (verify quarterly notification). The government reviews small-savings rates every quarter, so the rate can change — the calculator lets you edit it, and the default here is updated against the latest notification.
How much will ₹1.5 lakh per year become in 15 years?
At the current 7.1% rate, depositing ₹1,50,000 at the start of every year grows to about ₹40,68,209 at maturity — ₹22,50,000 of your own deposits plus ₹18,18,209 of completely tax-free interest.
Is PPF really tax-free?
Yes — PPF has EEE status: the deposit qualifies for Section 80C deduction up to ₹1.5 lakh (old tax regime), the interest is exempt, and the maturity amount is exempt. It is one of the very few investments where all three stages are tax-free.
Can I extend my PPF account after 15 years?
Yes, indefinitely, in 5-year blocks. You can extend with fresh contributions (submit Form H within one year of maturity) or without contributions — the balance keeps earning the notified rate either way. Many savers treat an extended PPF as a tax-free pension pot.
Should I deposit monthly or once a year?
PPF interest is calculated on the lowest balance between the 5th and the end of each month. Depositing the full ₹1.5 lakh before 5 April earns interest for the entire year and beats 12 monthly instalments by a meaningful margin over 15 years. If you must go monthly, deposit before the 5th.
Can I withdraw from PPF before 15 years?
Partially, yes — from the 7th financial year you can withdraw up to 50% of the balance at the end of the 4th preceding year, once a year. A loan facility is available between the 3rd and 6th years. Full premature closure is allowed only in specific cases (serious illness, higher education, NRI status change) after 5 years, with a 1% rate cut.
PPF vs FD vs SIP — where does PPF fit?
PPF beats FDs on tax (FD interest is taxed at slab; PPF interest is exempt) but locks money for 15 years. Equity SIPs have historically returned more over long periods but carry market risk. A common allocation: PPF as the guaranteed, tax-free debt layer; SIPs for growth. Compare with our
FD calculator and
SIP calculator.
Estimates are for information and education only — not financial, tax or investment advice. Verify current rates and rules with official sources.