PPF Calculator
Estimate Public Provident Fund maturity from annual contributions.
What is PPF?
The Public Provident Fund (PPF) is a government-backed savings scheme with a 15-year lock-in period. It offers tax-free interest, tax-deductible contributions, and tax-free maturity proceeds (EEE status). PPF is ideal for long-term goals like retirement, children's education, or wealth creation with zero risk.
PPF Maturity Calculation
PPF interest is compounded annually. Maturity Amount = Sum of [Annual Contribution * (1 + r)^(remaining years)] for each year. For example, contributing $1,500 annually at 7.1% for 15 years yields approximately $40,662 total ($22,500 contributions + $18,162 interest).
PPF Tax Benefits
- •PPF offers triple tax exemption: (1) Contributions are deductible from taxable income, (2) Interest earned is completely tax-free, (3) Maturity proceeds are tax-exempt. This EEE status makes PPF one of the most tax-efficient investments available.
PPF Withdrawal Rules
Full withdrawal: Only at maturity (15 years) or after extension blocks. Partial withdrawal: Allowed from 7th year, up to 50% of balance at end of 4th preceding year or preceding year (lower). Loan: Available between 3rd-6th year at 1-2% above PPF rate. Extension: Account can be extended in 5-year blocks after maturity.
PPF vs Other Tax-Saving Options
PPF offers guaranteed returns with zero risk but has a 15-year lock-in. ELSS (tax-saving mutual funds) have a 3-year lock-in with market-linked returns. NSC has a 5-year lock-in with taxable interest. PPF is best for conservative investors seeking guaranteed tax-free returns.
Comparison Analysis
PPF vs ELSS vs NSC
| Criteria | PPF | ELSS | NSC |
|---|---|---|---|
| Lock-in Period | 15 years | 3 years | 5 years |
| Returns | 7-9% (government-set) | Market-linked (10-15% historical) | 6.8-7.5% (government-set) |
| Risk | Zero (government-backed) | Market risk | Zero (government-backed) |
| Tax on Interest | Tax-free | Tax-free (LTCG up to limit) | Taxable |
| Best For | Conservative, long-term investors | Moderate risk, shorter lock-in | Conservative, medium-term investors |
Content Verification
Expert Review
Reviewed by Rajesh Kumar, Certified Financial Planner (CFP), Tax Advisory Specialist
Authoritative Sources
Based on Ministry of Finance guidelines, National Savings regulations, and Income Tax provisions
Last Reviewed
Content verified May 2026 against current PPF rates and tax regulations