PPF Calculator

The Public Provident Fund is a 15-year, government-backed savings scheme with a notified interest rate, a yearly contribution cap, and tax treatment that savers still call EEE when the law allows. This page compounds annual contributions at the rate you type — default 7.1% — and is not the Department of Posts ledger.

The cash-flow question

Parents in Chandigarh and self-employed accountants in Vadodara use PPF because the lock-in fights the urge to spend, and because interest has historically been tax-exempt under the scheme. ₹1,00,000 a year for 15 years at 7.1% is the default: about ₹27.12 lakh at maturity on ₹15 lakh contributed. That picture is why PPF still sits next to EPF in household planning.

The maths on this page

Annual contribution future value: FV = C × [((1+r)^n − 1) / r] × (1+r) with C = ₹1,00,000, r = 0.071, n = 15, giving about ₹27,12,139, of which about ₹12,12,139 is interest in the model. The statutory yearly cap and the exact compounding (PPF interest is credited yearly on a prescribed month-end rule) can differ by a few rupees from this annuity.

Interest rates are notified quarterly by the Government of India. IndiaKit does not fetch the latest circular. Confirm the current PPF rate on nsiindia.gov.in or through your bank’s PPF desk.

Partial withdrawals and extension in blocks of five years follow scheme rules. Loans against PPF have windows. None of those options are modelled here.

₹1 lakh a year PPF from Chandigarh for 15 years

Gurpreet in Chandigarh contributes ₹1,00,000 every year at a 7.1% planning rate. After 15 years the annuity sketch shows about ₹27.12 lakh. He still reads the latest notified rate each quarter and does not treat 7.1% as a forever coupon.

What a bank still has to confirm

Contribution caps, extension rules and tax clauses live in the PPF Scheme and the Income-tax Act as amended. This is an indicative compounding engine. Do not open or operate PPF through this website; use a bank or Post Office account.

Common questions

Is 7.1% guaranteed for 15 years?

No. PPF rates are notified periodically. Your ledger will use the rate applicable each year. 7.1% is the default input on this page because it has been a familiar recent notified level, not a covenant.

Can I put more than ₹1.5 lakh a year?

The scheme prescribes a maximum annual contribution. If the cap in force is ₹1.5 lakh, extra deposits may earn no interest. Confirm the cap in the current scheme text before you transfer funds.

PPF versus NPS — which is this page?

This page is PPF only. NPS is a different, market-linked retirement product with its own calculator on IndiaKit and rules on npstrust.org.in.