PPF Calculator
Key Takeaway
PPF offers 7.1% tax-free compounding over 15 years with an annual limit of ₹1.5 lakh. Investing ₹1.5 lakh/year for 15 years grows to ₹40.7 lakh , completely exempt from tax under EEE status.
22,50,000
40,68,209
18,18,209
PPF Compounding Growth Curve
What to do next
Based on your PPF Calculator, here are the tools you should try next:
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PPF Compounding Formula
Where A is the Maturity Amount, P is the Annual Installment, i is the annual interest rate, and n is the tenure in years (minimum 15 years).
Worked Example: Maximising PPF limit
- Total Invested: ₹1,50,000 × 15 = ₹22,50,000
- Interest Earned (Tax-Free): ₹18,18,209
Your total maturity corpus will be **₹40,68,209**. Since PPF is an EEE (Exempt-Exempt-Exempt) instrument, this entire maturity amount and the interest earned is completely tax-free.
PPF: India's Most Underrated Wealth-Building Instrument for the Risk-Averse
In a world of volatile markets and complex instruments, the Public Provident Fund stands as something almost old-fashioned in its simplicity: a government-backed account that compounds your money at a declared quarterly rate, completely exempt from tax at every stage. No capital gains tax. No tax on interest. No tax on maturity.
The PPF's Exempt-Exempt-Exempt (EEE) status under the Income Tax Act is its superpower. A 30% tax bracket investor who earns 7.1% from PPF is effectively earning a pre-tax equivalent of 10.14% , because all competitors (FDs, RDs) see their returns reduced by income tax on interest.
PPF has two main limitations: a 15-year lock-in (with partial withdrawal allowed from year 7) and a ₹1.5 lakh annual deposit cap. The lock-in is actually a psychological feature , it prevents panic withdrawal during market scares. And the ₹1.5 lakh cap is shared with other 80C instruments, so many investors maximise ELSS first and top up PPF with remaining 80C room.
Ideal for: ultra-conservative investors, debt allocation in retirement portfolios, and parents building a long-term tax-free corpus for children. Pair with ELSS for the equity growth engine.
Frequently Asked Questions
What is the current PPF interest rate?
As of 2024-25, the PPF interest rate is 7.1% per annum, compounded annually. The rate is reviewed quarterly by the government but has remained stable.
Can I withdraw from PPF before maturity?
Partial withdrawals are allowed from the 7th financial year onwards. You can withdraw up to 50% of the balance at the end of the 4th preceding year. Full withdrawal is only at maturity (15 years).
Is PPF completely tax-free?
Yes. PPF enjoys EEE (Exempt-Exempt-Exempt) tax status. The investment qualifies for 80C deduction, the interest earned is tax-free, and the maturity amount is fully tax-free.
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