Public Provident Fund (PPF) Calculator (FY 2024-25)

Compute sovereign-backed retirement compounding under Rule 7(1) of the PPF Scheme 2019. Compare April 5th lump-sum against monthly SIP schedules with complete EEE tax advantage analysis.

Statutory cap under Section 80C and Rule 4 of PPF Scheme 2019 is ₹1,50,000 per financial year.
Rule 7(1): Interest is calculated on the minimum credit balance between the 5th day and the end of each month.
Current Govt Notified: 7.1% p.a.
Initial maturity is 15 years. Under Rule 13, account can be extended indefinitely in blocks of 5 years.
Wealth Compounding Split (15 Years)
Invested: 55%
Interest Wealth: 45%
🛡️ EEE Tax Shield Advantage

Because PPF is exempt at deposit (80C), exempt on accrual, and exempt on withdrawal (`Section 10(11)`), you earn ₹6,78,215 more than a taxable 30% slab bank FD at the same rate!

Total Maturity Corpus (Tax-Free)
₹40,68,208
100% Tax Exempt upon withdrawal under Section 10(11)
Total Principal Invested
₹22,50,000
Compound Interest Earned
+₹18,18,208
Year-by-Year PPF Compounding Schedule (Rule 7(1))
Financial YearOpening BalanceAnnual DepositInterest Accrued (`7.1%`)Closing Balance
Year 1₹0₹1,50,000+₹10,650₹1,60,650
Year 2₹1,60,650₹1,50,000+₹22,056₹3,32,706
Year 3₹3,32,706₹1,50,000+₹34,272₹5,16,978
Year 4₹5,16,978₹1,50,000+₹47,355₹7,14,333
Year 5₹7,14,333₹1,50,000+₹61,368₹9,25,701
Year 6₹9,25,701₹1,50,000+₹76,375₹11,52,076
Year 7₹11,52,076₹1,50,000+₹92,447₹13,94,523
Year 8₹13,94,523₹1,50,000+₹1,09,661₹16,54,184
Year 9₹16,54,184₹1,50,000+₹1,28,097₹19,32,281
Year 10₹19,32,281₹1,50,000+₹1,47,842₹22,30,123
Year 11₹22,30,123₹1,50,000+₹1,68,989₹25,49,112
Year 12₹25,49,112₹1,50,000+₹1,91,637₹28,90,749
Year 13₹28,90,749₹1,50,000+₹2,15,893₹32,56,642
Year 14₹32,56,642₹1,50,000+₹2,41,872₹36,48,514
Year 15₹36,48,514₹1,50,000+₹2,69,694₹40,68,208
📐 Rule 7(1) Statutory Calculation Methodology & Audit Trace
1. Statutory Sovereign Interest Accrual:
Under Rule 7(1) of the Public Provident Fund Scheme, 2019, interest is calculated on the lowest credit balance between the close of the 5th day and the end of each month.
• In Annual Lump-Sum mode (deposited on or before April 5th), the full contribution `₹$1,50,000` qualifies for 12 months of interest during that financial year.
• In Monthly SIP mode (deposited before the 5th of each month), monthly interest accrues on cumulative monthly balances (`I_month = Balance_min * r / 12`).
2. 5-Year Block Extension Rules (Rule 13):
Upon reaching the mandatory 15-year maturity (`₹$40,68,208`), the subscriber can submit Form H to extend the account in blocks of 5 years (`20`, `25`, `30` years) with continued contributions, maintaining EEE tax exemption under Section 10(11).

About the PPF Calculator

The Public Provident Fund is a long-term savings scheme backed by the Government of India, designed to build retirement capital with sovereign safety and a distinctive tax treatment. Its defining features are a fifteen-year lock-in, a statutory contribution band, and exempt-exempt-exempt status, meaning contributions qualify for deduction, interest accrues tax-free, and the maturity amount is received without tax. The interest rate is notified by the government each quarter rather than fixed for the life of the account, so a projection must assume an average rate across the tenure. One mechanical detail drives outcomes more than most account holders realise: interest is calculated on the lowest balance between the close of the fifth day and the end of each month, which means a deposit made on or before the fifth of the month earns interest for that month while one made on the sixth does not. Over fifteen years, timing deposits correctly is worth a meaningful sum.

Mathematical Formula & Logic

PPF accumulation is annual compounding applied to a growing balance. 1. Balance recursion, year by year: Balance(t) = (Balance(t−1) + Deposit(t)) × (1 + r) Where r is the annual interest rate as a decimal, notified quarterly by the government and therefore variable across the tenure. 2. Closed form for a constant annual deposit (annuity due): M = P × [((1 + r)ⁿ − 1) ÷ r] × (1 + r) Where P is the annual deposit, n is the number of years, and the trailing (1 + r) reflects that the deposit is made at the start of the period rather than the end. 3. Statutory contribution limits per financial year: Minimum deposit = 500 Maximum deposit = 150,000 A year with no deposit renders the account dormant until revived. 4. The interest crediting rule that timing depends on: Interest for a month accrues on the LOWEST balance between the close of the 5th day and the last day of that month. A deposit on or before the 5th therefore earns for the full month; one on the 6th does not. 5. Tenure: Initial lock-in of 15 years, extendable in blocks of 5 years.

Step-by-Step Example

Project a maximum annual deposit of 150,000 held for the full 15-year term at an assumed average rate of 7.1 percent: 1. Annual deposit P = 150,000, rate r = 0.071, tenure n = 15. 2. Compute the growth factor: (1 + 0.071)^15 = 2.797964 3. Annuity factor = (2.797964 − 1) ÷ 0.071 = 1.797964 ÷ 0.071 = 25.3234 4. Apply the annuity-due adjustment: 25.3234 × 1.071 = 27.1214 5. Maturity M = 150,000 × 27.1214 = 4,068,209 6. Total deposited = 150,000 × 15 = 2,250,000 7. Interest earned = 4,068,209 − 2,250,000 = 1,818,209 Interpreting the result: 8. Roughly 45 percent of the maturity value is interest rather than contribution, and because of the exempt-exempt-exempt treatment none of that interest is taxed. 9. For a taxpayer in a 30 percent slab, earning this tax-free is equivalent to a taxable instrument yielding about 10.1 percent before tax, which is why PPF remains competitive despite a modest headline rate. The timing effect: 10. Depositing on or before the 5th of April rather than at the end of March in the following year captures an extra year of interest on that contribution, and repeated across fifteen years this alone accounts for a substantial share of the final balance.

Reference Data & Values

annual deposityearsassumed ratetotal depositedapprox maturity
50,000157.1%750,0001,356,070
100,000157.1%1,500,0002,712,139
150,000157.1%2,250,0004,068,209
150,000207.1%3,000,0006,658,288
150,000257.1%3,750,00010,308,015

Frequently Asked Questions

Interest for each month is calculated on the lowest balance between the close of the fifth day and the last day of that month, so a deposit credited on or before the fifth counts toward that month's interest while one credited on the sixth earns nothing for those thirty days. Depositing the full annual amount on or before the fifth of April, the first month of the financial year, therefore captures twelve months of interest on the entire contribution rather than eleven or fewer. Repeated across a fifteen-year tenure, this single habit compounds into a materially larger maturity value at no extra cost.
It means the instrument is untaxed at all three stages of its life. Contributions are deductible from taxable income under the relevant section, the interest credited each year is not taxed as it accrues, and the maturity proceeds are received entirely tax-free. Very few instruments carry all three exemptions, which is what makes the effective return higher than the headline rate suggests. For someone in a 30 percent slab, a tax-free 7.1 percent is equivalent to roughly 10.1 percent from a fully taxable deposit.
Full withdrawal is not permitted before maturity, but the scheme allows limited partial withdrawal from the seventh financial year onward, capped at a defined proportion of the balance at a specified earlier point. Loans against the balance are available in the earlier years, generally between the third and sixth year, at a rate above the prevailing PPF rate. Premature closure is allowed only in narrow circumstances such as specified medical treatment or higher education, and carries an interest penalty. The rules are prescribed by scheme regulations and should be confirmed with the operating bank or post office.
At maturity you may withdraw the entire balance tax-free, or extend the account in blocks of five years. Extension can be with or without further contributions: extending with contributions continues the full accumulation cycle, while extending without contributions leaves the balance earning interest with one withdrawal permitted each year. The option to extend indefinitely in five-year blocks makes PPF usable as a genuine retirement vehicle rather than only a fifteen-year product, and the tax exemption continues through extensions.
No. The rate is notified by the government on a quarterly basis and applies to all accounts for that quarter, so the return varies across the life of the account rather than being locked at opening. This makes PPF different from a fixed deposit, where the contracted rate holds for the full term. Any projection, including the one produced here, necessarily assumes a constant average rate, so treat the maturity figure as a reasonable estimate rather than a guarantee and revisit it if rates move substantially.
The statutory band is a minimum of 500 and a maximum of 150,000 in each financial year, and the maximum applies across all accounts held by an individual including those opened on behalf of a minor. Depositing more than the ceiling earns no interest on the excess. Failing to deposit the minimum in a given year renders the account dormant, which can be revived by paying a small penalty along with the missed minimum for each defaulted year. Contributions may be made as a single sum or in installments across the year.