Formula used
Maturity value uses the annuity-due formula: yearly investment x ((1+r)^n - 1)/r x (1+r), assuming each deposit is made at the start of the year and the rate stays constant. r is the annual PPF rate and n is the number of years.
Example calculation
Investing Rs 1,50,000 every year for 15 years at 7.1% gives a total investment of Rs 22,50,000, an estimated maturity value of about Rs 40,68,000, and interest of about Rs 18,18,000 — all tax-free under current rules.
How to use this calculator
- Enter how much you plan to invest each financial year (Rs 500 to Rs 1,50,000).
- Keep the current notified PPF rate or adjust it for scenario planning.
- Choose 15 years, or a longer period if you plan to extend in 5-year blocks.
- Read the total invested, estimated maturity value and tax-free interest.
Important assumptions
- Deposits are made at the start of each year and the rate stays constant for the full period; the actual notified rate changes quarterly.
- Interest crediting follows the annuity-due approximation, closely matching early-in-the-year deposits.
- Educational estimate only. Actual PPF interest follows monthly-balance rules set by the government.
Common mistakes to avoid
- Depositing after April 5 and losing a month or more of interest.
- Exceeding the Rs 1.5 lakh yearly cap, which earns nothing extra.
- Forgetting that the quarterly rate can change over a 15-year horizon.
- Ignoring the 15-year lock-in when money may be needed sooner.
- Letting the account lapse by missing the Rs 500 minimum yearly deposit.
What is PPF and why is it popular?
The Public Provident Fund is a government-backed small savings scheme with a 15-year term, quarterly-notified interest and EEE tax status — the contribution, the interest and the maturity amount are all tax-exempt under current rules. That combination of sovereign safety and tax-free compounding makes it a core long-term savings product for Indian households.
- Government-backed with sovereign guarantee.
- Section 80C benefit on contributions up to Rs 1.5 lakh.
- Interest and maturity tax-free under current rules.
How the 15-year maturity works
The account matures 15 complete financial years after the year of opening. On maturity you can withdraw everything, extend for 5 years with contributions, or extend without contributions while the balance keeps compounding. Many savers use repeated extensions to turn PPF into a 20-25 year corpus.
PPF example: Rs 1.5 lakh per year
At 7.1% for 15 years, yearly deposits of Rs 1,50,000 made early in the year total Rs 22,50,000 and grow to about Rs 40,68,000 — roughly Rs 18.2 lakh of tax-free interest. The same discipline extended to 20 years grows to about Rs 66.6 lakh, showing how strongly the extra years compound.
PPF vs FD vs SIP
PPF gives assured, tax-free returns with a long lock-in. FDs give assured but taxable returns with flexible tenure. Equity SIPs offer higher potential returns with market risk. Many households combine them: PPF for the safe core, SIP for growth.
- PPF: assured, tax-free, 15-year lock-in.
- FD: assured, taxable, flexible tenure.
- SIP: market-linked, higher potential, no guarantee.
Source and Methodology
This calculator estimates PPF maturity using the annuity-due future-value formula on your yearly investment, rate and period. Actual PPF interest is notified quarterly by the government and credited using monthly-balance rules, so real outcomes can differ slightly. Educational estimate only.
Related calculators and guides
You can cross-check this estimate using: salary in-hand calculator, Old vs New Tax Regime Calculator, 80C deduction calculator, EMI calculator, ITR-2 filing guide, emergency fund guide.
When this tool is useful
- When you want a fast estimate before making a financial or salary decision.
- When you want to compare different assumptions in seconds.
- When you want to understand the formula behind the result.