PPF Calculator

Calculate your Public Provident Fund maturity amount — with year-by-year compounding, partial withdrawal eligibility, and the triple tax (EEE) advantage clearly shown.

🏛️ PPF Calculator — 7.1% (FY 2026-27)

Currency:

Yearly Investment ₹ Min ₹500, Max ₹2,00,000 (Budget 2026)

PPF Interest Rate (%) Current: 7.1% p.a. (Q1 FY 2026-27)

Duration (years) Min 15 years; extends in 5-year blocks

PPF in 2026 — What Changed and What Stayed the Same

The Public Provident Fund remains India's most trusted government-backed savings instrument, combining three features no market-linked product can guarantee: sovereign safety, certain returns, and complete tax exemption. Key 2026 updates:

Rate: 7.1% p.a. (compounded annually) — confirmed unchanged for Q1 FY 2026-27 by Finance Ministry on 30 March 2026. Seventh consecutive year at this rate since the last revision on 1 April 2020.
Maximum deposit limit raised: Budget 2026 raised the annual ceiling from ₹1.5 lakh to ₹2 lakh.
Partial withdrawal earlier: allowed after 4 years (previously 5 years) under Budget 2026.
15-year lock-in unchanged; extends in 5-year blocks with or without contributions.

EEE — The Triple Tax Advantage Explained

PPF is one of only two investments in India with Exempt-Exempt-Exempt status (the other being EPF):

Stage	Tax Treatment
Contribution (up to ₹1.5L)	Deductible under Section 80C (old regime)
Interest earned annually	Completely tax-free
Maturity/withdrawal amount	Completely tax-free

Compare this to FDs (interest taxed at slab rate) or even NSC (maturity interest taxed). On a ₹2L/year PPF over 15 years, the tax saved on interest alone can exceed ₹1–2 lakh depending on your bracket.

The "5th of the Month" Rule — How Interest Is Actually Calculated

PPF interest is calculated on the lowest balance between the 5th and last day of each month. If you deposit ₹2 lakh on April 7th, you miss interest for the entire April — the ₹2 lakh sits un-compounded for a full month. The optimal strategy: deposit before 5th April every year for the maximum interest. This small discipline adds up to ₹20,000–30,000 extra at maturity over a 15-year horizon.

After 15 Years — Your Three Options

Close and withdraw: full maturity amount, 100% tax-free. Use if you need funds immediately.
Extend without deposits: account earns 7.1% on existing balance, one tax-free partial withdrawal per year. Ideal for retirees seeking passive income.
Extend with deposits (5-year blocks): keep investing, keep compounding, keep 80C benefits. Best for those who don't need the corpus yet — compounding at 7.1% tax-free is genuinely hard to beat for the risk level.

Loan Against PPF — The Forgotten Feature

From year 3 to year 6, you can borrow up to 25% of the balance at the end of year 2. The loan rate is PPF rate + 1% (so 8.1% in 2026) — cheaper than personal loans (10–24%). This makes PPF a dual-purpose instrument: long-term savings plus an emergency credit line with no credit score check.

Frequently Asked Questions

Can NRIs open or continue a PPF account?

NRIs cannot open new PPF accounts. However, NRIs who opened accounts before becoming NRI can continue contributing until the account's natural maturity (15 years from opening). After maturity, the account earns interest but fresh contributions are not allowed.

Is PPF better than ELSS for tax saving?

Different risk-return profiles. ELSS historically returns 12–15% but carries market risk and has a 3-year lock-in. PPF guarantees 7.1% with no risk and 15-year lock-in, but EEE status makes effective post-tax returns competitive. Optimal strategy: ELSS for the growth portion, PPF for the safe bedrock.

Can I open a PPF account for my child?

Yes — a parent/guardian can open one account per minor child. No PPF account for HUFs (Hindu Undivided Families) after 2005. Interest on minor's PPF is clubbed with the parent's income for tax, but since PPF interest is tax-exempt, this is irrelevant in practice.