When should I deposit?

By the fifth of April. Interest is credited on the lowest balance between the fifth and the last day of the month, so an early April deposit earns a full year and a March one earns nothing that year.

What happens at fifteen years?

You can withdraw, or extend in five year blocks either with or without further deposits. Extending without deposits still earns interest on the balance, which is often the best rate available for money that is not needed.

Is PPF really tax free?

At all three stages: the deposit is deductible, the interest is untaxed and the maturity is untaxed. Very little else in India offers that.

Finance & Loansgovt schemesIndia only

PPF Calculator

PPF maturity with the rules that actually decide the outcome. Interest is credited on the lowest monthly balance, so depositing in early April rather than March earns a full extra year of interest on every contribution.

Also called: public provident fund calculator, ppf maturity calculator.

Maturity value

₹40,68,209

₹40,68,209 after 15 years, from ₹22,50,000 deposited and ₹18,18,209 of interest. Depositing in early April earns a full year of interest on every contribution, which is the best timing available. The exemption at all three stages is worth about 545462.77 against a comparable taxable deposit at your slab. At maturity you can extend in five year blocks, with or without further deposits, and the balance keeps earning.

Total deposited

₹22,50,000

Interest earned

₹18,18,209

If deposited each April

₹40,68,209

Cost of depositing late

₹0

Value of the exemption against a taxable deposit

₹5,45,463

Loan available from year three

₹1,20,488

Partial withdrawal available from year seven

₹20,34,105

With the extensions applied

₹40,68,209

On deposit timing

Depositing in early April earns a full year of interest on every contribution, which is the best timing available.

On the exemption

The exemption at all three stages is worth about 545462.77 against a comparable taxable deposit at your slab.

On extending

At maturity you can extend in five year blocks, with or without further deposits, and the balance keeps earning.

How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Deposits compound annually at the notified rate, which is revised quarterly. The timing rule is the part worth acting on: interest accrues on the lowest balance between the fifth and the last day of each month, so a deposit made on 5 April earns for the whole year and the same deposit made in March earns nothing that year. Over fifteen years that difference compounds into a substantial sum for no extra contribution. The account is exempt at deposit, at interest and at maturity, which is rare, and it can be extended indefinitely in five year blocks with or without further deposits.

interest is credited on the lowest balance between the fifth and the last day of the month, which is why April deposits earn a full year and March deposits earn none

d: Annual deposit
r: Rate

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

the full limit for fifteen years

Deposit each year: ₹1,50,000
Interest rate (per year): 7.1%
Years: 15
When you deposit: Early April, at the start of the year
Your tax slab, for the exemption value: 30%
Five year extensions after maturity: 0

Maturity value₹40,68,209

15 deposits of 1.5 lakh compounding annually at 7.1%

Open this example

depositing in March costs a year of interest

Deposit each year: ₹1,50,000
Interest rate (per year): 7.1%
Years: 15
When you deposit: March, at the end of the year
Your tax slab, for the exemption value: 30%
Five year extensions after maturity: 0

Maturity value₹40,40,386

boundary: the same money, one year less interest on the first deposit

Open this example

Method and limits

What it assumes

A constant rate across the term, which will not hold: the rate is notified quarterly.
Deposits at the timing selected, applied consistently every year.

What it deliberately does not model

The rate changes quarterly, so a fifteen year projection at one rate is illustrative.
The annual deposit ceiling applies across all PPF accounts held by an individual.
Premature closure is permitted only on specific grounds and carries a rate penalty.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

When should I deposit?: By the fifth of April. Interest is credited on the lowest balance between the fifth and the last day of the month, so an early April deposit earns a full year and a March one earns nothing that year.
What happens at fifteen years?: You can withdraw, or extend in five year blocks either with or without further deposits. Extending without deposits still earns interest on the balance, which is often the best rate available for money that is not needed.
Is PPF really tax free?: At all three stages: the deposit is deductible, the interest is untaxed and the maturity is untaxed. Very little else in India offers that.