How much can I deposit in PPF each year?

₹1,50,000 across all your accounts combined, and at least ₹500 to keep an account active. Money deposited above the ceiling earns no interest at all, so it is worth checking the total if you also fund a minor's account.

Will the interest rate stay at 7.1%?

Almost certainly not for fifteen years. The Ministry of Finance reviews small-savings rates every quarter, and while the rate has been unchanged for several quarters, it has moved considerably over longer periods. Use the rate scenario above to see how much the maturity value depends on that assumption.

Is PPF interest taxable?

No. The scheme is exempt at all three stages: the deposit is deductible, the interest is not taxed as it accrues, and the maturity amount is tax-free. This is what makes a 7.1% PPF return comparable to a considerably higher taxable deposit rate.

When should I make the deposit to earn the most?

Before the 5th of April, because a month's interest is computed on the lowest balance between the 5th and the last day of that month. A deposit made on the 6th earns nothing for that month. This calculator assumes a start-of-year deposit, which is the best case.

Can I withdraw before fifteen years?

Partial withdrawals are permitted from the seventh year, subject to limits, and a loan against the balance is possible earlier. Neither is modelled here, so treat these figures as the outcome if the account is left alone.

Should I choose PPF or an equity fund?

They answer different questions. PPF gives a government-set return with no market risk and no tax, which suits money you cannot afford to see fall. Equity has historically returned more over long periods with substantial volatility along the way. Most portfolios hold both, and the SIP calculator will show the other side of that comparison.

Investment · FINANCIAL TOOLS

PPF Calculator

Project a Public Provident Fund balance year by year, and see how much of it is interest rather than deposits.

Understand the calculation

Calculation logic, formula, example and guardrails behind the estimate.

How it works

Each year's deposit is added to the running balance, and interest is credited on the whole balance at the close of the year. Because the deposit is assumed to arrive at the start of the year, it earns for all twelve months — which is exactly what published PPF maturity tables assume, and why the figures here agree with them.

The schedule shows every year separately, so you can see the point at which annual interest exceeds the annual deposit. At the maximum deposit and the current rate that happens around year eleven, and from then on the account grows more from interest than from you.

More detail

The rate is an input rather than a constant. The government resets it every quarter and it has moved considerably over any fifteen-year stretch, so a projection that treats today's rate as permanent is the optimistic case rather than the expected one.

Nothing about tax is modelled, because there is nothing to model: deposits qualify for deduction, interest accrues untaxed and the maturity amount is exempt.

For a girl child, the same structure at a higher rate is the Sukanya Samriddhi calculator.

To compare against a taxable deposit, use the fixed deposit calculator.

For the market-linked alternative, see the SIP calculator.

Formula

M = D × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)

An annuity-due: the trailing (1 + r) is there because each deposit earns for the year it is made, not from the year after. Dropping it understates a fifteen-year maturity by roughly ₹2.7 lakh at the maximum deposit.

M: Balance at maturity.
D: Deposit made at the start of each year.
r: Annual interest rate, as a decimal.
n: Number of years the account runs.

Worked example

The maximum ₹1,50,000 deposited at the start of each year for fifteen years, at the current 7.1%.

01Total deposited₹22,50,000
02Balance at maturity₹40,68,209
03Interest earned₹18,18,209
04Interest share of maturity44.7%
05Interest credited in year 15₹2,69,753

Nearly 45% of the final balance was never deposited, and the interest credited in the fifteenth year alone is larger than the whole year's deposit. Because none of it is taxed, comparing this with a fixed deposit means comparing 7.1% against a deposit rate reduced by your own slab — around 10.3% before tax for someone in the 30% bracket.

Important considerations

01
The tax exemption is the real return
PPF is exempt at deposit, at accrual and at withdrawal. A taxable deposit has to pay about 10.1% to leave someone in the 30% bracket with the same money as PPF at 7.1%. Comparing headline rates without that adjustment consistently makes PPF look worse than it is.
02
The last five years do most of the work
Interest is proportional to the balance, and the balance is largest at the end. In the fifteen-year schedule above, the final five years account for more interest than the first ten combined — which is the case against treating a PPF account as a place to park money briefly.
03
Extensions start from a large balance
After fifteen years the account can be extended in five-year blocks, with or without further deposits. An extension without deposits still compounds a ₹40 lakh balance, and the scenario table above shows what each block adds.

Limitations

The rate is assumed constant for the whole term, and it will not be. It has been reset every quarter for years, and any fifteen-year window contains several changes.
The lowest-balance rule is not modelled. A deposit made after the 5th of a month earns nothing for that month, so real-world timing can cost a little relative to these figures.
Partial withdrawals from the seventh year and loans against the balance are both ignored, and either would reduce the maturity value.
The ₹1,50,000 ceiling applies across all your PPF accounts combined, including a minor's account you operate. This calculator sees only the figure you enter.

Frequently asked questions

Common questions about the ppf calculator and the assumptions behind it.

Next useful checks

Move from this result to the next decision without hunting through the full calculator list.

Fixed Deposit CalculatorCompare government schemes with bank-deposit assumptions.Recurring Deposit CalculatorModel smaller monthly deposits instead of lump sums.

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Disclaimer

This calculator is provided for general information and planning only. It is not investment, tax or legal advice, and it does not take your personal circumstances into account. Outputs are estimates based on the assumptions stated on this page, exclude taxes and charges unless said otherwise, and market-linked returns are not guaranteed — the value of investments can fall as well as rise. Lending terms, rates and eligibility are decided by the lender. For advice on your own situation, speak to a qualified professional, several of whom you can consult on Finvestalk.