Min ₹500 · Max ₹1,50,000 per year
Current rate: 7.1% (FY 2025-26). Adjust if rate changes.
What is PPF and Why Calculate It?
PPF (Public Provident Fund) is India's most popular long-term savings instrument — government-backed, completely tax-free (EEE status), and currently earning 7.1% interest per annum compounded annually.
The EEE (Exempt-Exempt-Exempt) tax treatment means: investment is deductible under 80C, interest earned is tax-free, and maturity amount is tax-free. For someone in the 30% bracket, the effective return is closer to 10.1%.
PPF has a 15-year lock-in but can be extended in 5-year blocks indefinitely. Partial withdrawals are allowed from year 7 onwards.
How is PPF Maturity Calculated?
Where F = Maturity amount, P = Annual investment, r = Annual interest rate (7.1%), n = Number of years.
Current PPF Rate
PPF interest rate for FY 2025-26 is 7.1% per annum, compounded annually. Interest is calculated on the lowest balance between 5th and last day of each month — so always invest before the 5th to earn interest for that month.
EEE Tax Benefit
For a 30% taxpayer investing ₹1.5L/year, the 80C deduction saves ₹46,800 in tax annually. Effective yield accounting for tax saved: approximately 10.1%.
Example Calculation
Frequently Asked Questions
The PPF interest rate for FY 2025-26 is 7.1% per annum, compounded annually. The rate is reviewed quarterly by the government but has remained at 7.1% since April 2020.
Investing ₹1.5 lakh/year for 15 years at 7.1% gives a maturity amount of approximately ₹40.68 lakh. Total invested is ₹22.5 lakh and interest earned is ₹18.18 lakh — all completely tax-free.
Yes — PPF can be extended in 5-year blocks after the initial 15-year period. You can extend with or without contributions. Extending with contributions at 7.1% for 5 more years (20 years total) on ₹1.5L/year investment grows corpus to ₹66.58 lakh.
For long-term savings, yes. PPF at 7.1% is tax-free, while FD interest is fully taxable. For a 30% taxpayer, a 7.1% PPF is equivalent to a 10.14% pre-tax FD — which no bank offers. PPF also carries zero default risk being government-backed.
Always invest before the 5th of April (beginning of financial year) to earn interest for the full year. PPF interest is calculated on the minimum balance between the 5th and last day of each month — investing after the 5th means losing one month's interest.
Related Calculators
Disclaimer: Results are for informational and educational purposes only — not financial, tax, or legal advice. Tax slabs, rates (EPF, PPF, home loan), and rules shown are based on data available in 2025 and may change. Always verify with a qualified professional or official government sources before making financial decisions.