PPF (Public Provident Fund) is a long-term, government-backed savings scheme
in India that offers fixed, compounding returns with a 15-year lock-in period.
It's widely used for retirement savings and tax-efficient long-term investing.
Disclaimer : Enter numbers in your local currency — the calculation works the same regardless of currency.
Formula
Maturity Value = P × [(((1 + R)N − 1) ÷ R) × (1 + R)]
Where,
P = Yearly Investment
R = Annual Interest Rate
N = Number of Years
Example
If Yearly Investment = 1,50,000, Rate = 7.1%, and Time Period = 15 years:
Total Invested : 22,50,000
Interest Earned : 18,18,345 (approx)
Maturity Value : 40,68,345 (approx)
Figures are approximate — actual PPF returns depend on the government's quarterly
rate revisions and the exact timing of your deposits each year.
How PPF Connects to Your Other Calculators
PPF is usually one option among several for long-term savings, so it's most useful
when compared directly against the alternatives.
FD / RD Calculator — both are low-risk, fixed-return options; comparing rates helps you decide which suits your liquidity needs and tax situation better.
SIP Calculator — SIP investments carry market risk but historically offer higher potential returns than PPF's fixed, government-set rate.
CAGR Calculator — use CAGR to check the actual annual growth rate of a market investment and compare it directly against PPF's guaranteed rate.
Retirement Calculator — PPF's 15-year (or extended) tenure makes it a natural building block within a broader retirement savings plan.
Related Calculators
FD / RD Calculator — compare against another guaranteed, fixed-rate savings option.
SIP Calculator — see the potential returns of a market-linked alternative.
CAGR Calculator — measure the real growth rate of any investment for comparison.
PPF (Public Provident Fund) is a long-term, government-backed savings scheme in India offering fixed, tax-free returns with a mandatory 15-year lock-in period. It's popular for retirement savings and long-term tax planning due to its safety and tax benefits.
PPF interest is compounded annually and calculated on the lowest balance in your account between the 5th and last day of each month. Since deposits made early in the month earn interest for that full month, contributing before the 5th maximizes interest earned.
The PPF interest rate is set by the Indian government and reviewed quarterly, so it can change over time. Always check the current official rate before relying on any specific figure for long-term planning.
Partial withdrawals are allowed starting from the 7th financial year, subject to specific limits based on your account balance. Premature closure of the entire account is only permitted in limited circumstances, such as medical emergencies or higher education needs.
PPF enjoys "triple E" tax status in India — contributions, interest earned, and the final maturity amount are all exempt from tax, making it one of the most tax-efficient long-term savings options available.
Yes. After the initial 15-year term, you can extend your PPF account in blocks of 5 years, either continuing to contribute or keeping it open without further deposits while it continues earning interest on the existing balance.