PPF Maturity Calculator (India) — 15 Year, 7.1% Rate, Tax-Free

Why PPF Offers Triple Tax Exemption (EEE)

Unlike most savings vehicles, Public Provident Fund qualifies for tax exemption at all three stages of your investment journey. Your annual contribution is deductible under Section 80C, reducing your taxable income. Interest accrues entirely tax-free every year, compounding without any tax drag. And when you withdraw at maturity after 15 years, the entire amount — principal plus accumulated interest — is completely tax-free.

To see why this matters: a fixed deposit paying an identical interest rate would tax the interest earned in your hands every year according to your income tax slab. In a higher tax bracket, that difference compounds significantly over 15 years. PPF's EEE structure removes that erosion.

The Rate Changes Every Quarter — Run Your Own Scenarios

PPF interest rates are set by the government and reviewed every three months, not locked for your 15-year tenure. The calculator shows the current prevailing rate, but this is not guaranteed. To plan realistically, adjust the interest rate slider to see maturity projections at lower rates — say 6.5% or 6% — and a higher rate scenario too. This range represents the uncertainty built into any 15-year projection, and helps you understand your account's sensitivity to rate changes.

PPF is a small savings scheme, so the rate is announced by the Ministry of Finance each quarter rather than by the RBI. Check the current quarter's notification, or ask your bank or post office, before committing a large deposit.

The Deposit Timing Rule That Quietly Costs Money

PPF interest is calculated on the lowest balance between the 5th and the last day of each month. This means a deposit made on the 6th of any month earns zero interest for that entire month. For an annual lump-sum deposit, the single most important date is before April 5th: depositing then captures a full year of interest. Depositing in March earns almost no interest for that financial year.

If you plan to contribute ₹1.5 lakh in one go, timing matters more than rate changes.

Lock-In, Limits, and Access Rules

PPF matures after 15 years and can then be rolled over in 5-year blocks. The annual contribution limit is ₹1.5 lakh, and you must maintain a minimum balance to keep the account active. Partial withdrawal opens from the seventh financial year, capped at half the balance standing at the end of the fourth year preceding the withdrawal or the year immediately before it, whichever is lower. A loan against the balance is available earlier, between the third and sixth financial years, and is capped at a quarter of the balance two years prior. These constraints are trade-offs for the tax exemption.

Compare scenarios using the fixed deposit calculator or NPS pension calculator to understand how lock-in and access rules fit your liquidity needs.