PPF Calculator

PPF is a government-backed long-term savings scheme in India. It offers guaranteed returns set by the government quarterly, complete tax exemption (EEE status), and a 15-year maturity period. It is one of the safest investments available in India, backed by the sovereign guarantee of the Government of India.

The current PPF interest rate is 7.1% per annum, applicable from April 2020. The rate is reviewed quarterly by the Ministry of Finance but has remained unchanged since then. Historically, PPF rates have never fallen below 7%, and the average over the last 20 years has been approximately 7.8–8%.

Minimum: ₹500 per year (account becomes inactive if you miss a year). Maximum: ₹1,50,000 per year per individual. You can make contributions in a maximum of 12 installments per year or as a lump sum. Joint accounts are not allowed — only individual and minor accounts.

PPF interest is calculated monthly on the minimum balance between the 5th and last day of the month. However, interest is credited annually on March 31. To maximise interest, deposit before the 5th of each month (or before April 5 for lump-sum yearly deposits). The formula: interest = balance × rate/12 each month, credited annually.

Partial withdrawal is allowed from the 7th financial year onwards. Maximum withdrawal per year: 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. Full premature closure is allowed after 5 years for specific reasons (medical emergency, higher education) with a 1% interest penalty.

Yes. Loans against PPF are available from the 3rd to 6th financial year. Maximum loan: 25% of the balance at the end of the 2nd preceding year. The loan must be repaid within 36 months. Interest rate: 1% above the prevailing PPF rate. After the 6th year, partial withdrawal replaces the loan facility.

PPF vs FD: PPF offers 7.1% tax-free vs FD at 6.5–7.5% taxable. Post-tax, PPF wins for those in 20–30% tax brackets. PPF vs ELSS: ELSS offers higher potential returns (12–15% historical) but with market risk. ELSS has a 3-year lock-in vs PPF's 15 years. PPF is better for risk-averse investors; ELSS for growth-oriented. Both qualify for Section 80C deduction.

PPF has EEE (Exempt-Exempt-Exempt) tax status: (1) Investment exempt under Section 80C up to ₹1.5 lakh. (2) Interest earned is completely tax-free. (3) Maturity proceeds are completely tax-free. This makes PPF one of the few instruments that are tax-free at all three stages, unlike FDs (interest taxable) or NPS (partial maturity taxable).