Reviewed October 2026
How the PPF calculator works
The Public Provident Fund (PPF) is a 15-year government savings scheme with tax-free interest. The rate is set every quarter by the government — it is 7.1% for October–December 2026, unchanged since April 2020.
You can deposit between ₹500 and ₹1,50,000 a year, and extend the account in blocks of 5 years after maturity.
How PPF interest is calculated
Interest is calculated every month on the lowest balance between the 5th and the end of the month, and credited once a year on 31 March. So deposit before 5 April to earn interest on that money for the full year — the calculator assumes you do.
Balance at year end = (Opening balance + Deposit) × (1 + rate)
Worked example
Depositing the maximum ₹1,50,000 every year for 15 years at 7.1% gives a maturity value of about ₹40,68,209 on ₹22,50,000 deposited — over ₹18 lakh of tax-free interest.
Tax benefits
- PPF is EEE: deposits qualify for the 80C deduction (old regime), and both interest and maturity are tax-free.
- Under the new regime there's no deduction for deposits, but interest and maturity are still tax-free.
- Partial withdrawals are allowed from the 7th financial year; loans against PPF from the 3rd to 6th year.
Frequently asked questions
What is the PPF interest rate now?
7.1% a year for the October–December 2026 quarter. The government reviews it every quarter.
Can I deposit more than ₹1.5 lakh in PPF?
No. ₹1,50,000 per financial year is the cap across your own and your minor child's accounts; excess deposits earn no interest.
What happens after 15 years?
You can close the account, keep it without new deposits (it still earns interest), or extend it in 5-year blocks with deposits.
Is PPF better than FD?
For a taxpayer in the 20% or 30% slab, PPF's tax-free 7.1% beats a taxable FD at 7%. FDs win on flexibility and shorter lock-ins.