Regional Notice: This calculator uses India's financial regulations, but you are viewing it in USD. for the most accurate local experience.
PPF Calculator
Savings & Fixed Returns
What is a Public Provident Fund (PPF) Calculator?
A PPF Calculator helps Indian citizens estimate the maturity value of their investments in the Public Provident Fund scheme. PPF is a highly secure, long-term savings vehicle backed by the Government of India that offers guaranteed returns and supreme tax benefits.
How is PPF Interest Calculated?
The PPF interest rate is declared by the Ministry of Finance every quarter. Interest is calculated on a monthly basis on the lowest balance between the 5th and the end of the month. However, this interest is only credited to your account once a year at the end of the financial year (March 31st).
The 'Invest Before the 5th' Rule
Always deposit your PPF contribution before the 5th of the month. If you deposit on the 6th, you lose the interest for that entire month!
The PPF Mathematical Formula
The maturity value of a PPF account is calculated using the following compound interest formula:
F = P × [((1 + R)^N - 1) / R]
Where F = Maturity Value, P = Annual Deposit, R = Annual Interest Rate, and N = Number of Years.
The EEE Tax Status
PPF is one of the few investment instruments in India that enjoys the coveted "Exempt-Exempt-Exempt" (EEE) status:
- Exempt 1 (Investment): Your annual deposit (up to ₹1.5 Lakhs) is fully tax-deductible under Section 80C.
- Exempt 2 (Accumulation): The interest you earn every year is completely tax-free.
- Exempt 3 (Maturity): The massive lump sum you withdraw after 15 years is 100% exempt fromincome tax.