PPF Calculator: Public Provident Fund Maturity

How the PPF calculator works

PPF interest is worked out every month on the lowest balance between the 5th and the last day of the month, and the year's interest is added on 31 March. That rule means a deposit made by 5 April earns interest for the whole year. The ppf interest calculator assumes you deposit by then each year, so each deposit grows a full year:

With ₹1,50,000 a year at 7.1% for 15 years, you deposit ₹22.5 lakh and the account grows to ₹40,68,209. The ₹18,18,209 of interest is fully tax free. If you deposit later in the year, the real figure will be a little lower.

PPF maturity for common yearly deposits

These figures use the 7.1% rate as an example. The rate can change every quarter, and your account earns whatever rate applies each quarter, so the actual maturity may differ.

Monthly deposits in a PPF account

Many people deposit in PPF every month, often ₹1,000 or ₹12,500. You can make up to 12 deposits a year, though the yearly limit stays ₹1.5 lakh. Since interest is counted on the balance after the 5th of each month, a monthly deposit made by the 5th earns interest that month.

Monthly deposits earn a little less than one lump deposit in April, because the money goes in through the year. On ₹1.5 lakh a year the gap over 15 years is roughly ₹1 lakh to ₹1.5 lakh. If you can, deposit the yearly amount early in April; if not, monthly is fine. For a monthly habit with fixed returns, compare the post office RD calculator.

Extending PPF after 15 years

At maturity you can close the account or extend it in blocks of 5 years, with or without fresh deposits. With ₹1.5 lakh a year at 7.1%:

The last 10 years add more than ₹60 lakh, most of it interest. That is compounding at work. To extend with deposits you must submit the extension form within one year of maturity; otherwise the account continues without new deposits but still earns interest.

PPF withdrawal and loan rules

• Partial withdrawal: allowed once a year from the 7th financial year, up to 50% of a set past balance.
• Loan: available from the 3rd to the 6th year, up to 25% of the balance two years earlier, at 1% above the PPF rate.
• Premature closure: allowed after 5 years for specific reasons such as serious illness or higher education, with a 1% interest cut.
• Minimum deposit: if you miss the ₹500 a year, the account becomes discontinued and can be revived with a small penalty.

For the exact rules, see the scheme page on the India Post website or ask your bank branch.

PPF calculator post office or bank: is there any difference

No. The PPF scheme rules, rate and tax treatment are identical whether you open the account at a post office or an authorised bank. Only the service differs: banks often allow online deposits from your savings account, while some post offices need a visit or the post office app. You can transfer an account between a post office and a bank without breaking it.

One adult can hold only one PPF account. A parent can open one for a minor child, but the ₹1.5 lakh limit covers both accounts together.

PPF vs other long term options

PPF gives a government backed, tax free return with a long lock in. Compare it with:

• EPF, if you are salaried, which usually pays a higher rate and builds automatically.
• NPS, which is market linked and adds a pension at 60.
• Equity SIPs, which can grow more over 15 years but carry market risk.
• NSC, a 5 year option with a similar rate, but taxable interest.

Deposits qualify for the small savings tax deduction of the old regime, capped at ₹1.5 lakh a year. Under the new regime that deduction is not available, though interest and maturity stay tax free.