PPF Calculator

Calculate maturity amount and interest earned on your Public Provident Fund (PPF) investment over 15 years.

Maturity Value$4,068,209.22
Total Investment$2,250,000.00
Total Interest Earned$1,818,209.22

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Understanding the Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a popular long-term investment scheme backed by the Government of India. It offers guaranteed returns, tax benefits, and a risk-free investment avenue. The PPF has a mandatory lock-in period of 15 years, making it an excellent choice for retirement planning or long-term financial goals.

How PPF Interest is Calculated

PPF interest is calculated on the lowest balance in your account between the close of the 5th day and the end of the month. Therefore, it is highly recommended to make your PPF contributions before the 5th of every month (or before April 5th for lump-sum yearly investments) to maximize your interest earnings. The interest is compounded annually and credited at the end of the financial year.

Worked Example

  1. Yearly Investment: ₹1,50,000 (Maximum limit)
  2. Duration: 15 Years
  3. Interest Rate: 7.1% per annum
  4. Total Investment: ₹1,50,000 × 15 = ₹22,50,000
  5. The calculator determines the compounded maturity value to be approximately ₹40,68,209, meaning you earn over ₹18,00,000 in interest alone!

Frequently Asked Questions

What is the minimum and maximum investment limit in PPF?

The minimum investment required to keep a PPF account active is ₹500 per financial year. The maximum investment limit is ₹1,50,000 per financial year.

Is PPF tax-free?

Yes, PPF falls under the 'EEE' (Exempt-Exempt-Exempt) category. The principal invested (up to ₹1.5 lakh under Section 80C), the interest earned, and the maturity amount are all completely tax-free.

Disclaimer: This calculator is for educational and informational purposes only. It is not a substitute for professional financial advice. Results are estimates based on the information provided and may not reflect actual outcomes. Please consult with a qualified financial advisor, accountant, or tax professional before making any financial decisions. Past performance does not guarantee future results.