PPF Calculator — Maturity, Interest & 80C

Maturity uses the future-value-of-annuity-due formula: Maturity = PMT × (((1 + r)^n − 1) / r) × (1 + r), where PMT is the annual deposit, r is the rate ÷ 100 and n is the number of years. This calculator assumes deposits are made at the start of each year, which is how you maximise interest by depositing before 5 April.

At a constant 7.1%, investing ₹1,50,000 a year for 15 years (deposits at start of year) gives a maturity of roughly ₹40.68 lakh — about ₹22.5 lakh invested and ₹18.18 lakh interest, entirely tax-free. Actual returns vary as the rate is revised each quarter.

Interest is compounded annually and credited to your account on 31 March each financial year. It is calculated monthly on the lowest balance between the 5th and the last day of the month, so a deposit made after the 5th earns no interest for that month.

The minimum deposit is ₹500 per financial year (to keep the account active) and the maximum is ₹1,50,000 per financial year. Deposits above ₹1.5 lakh earn no interest and are not eligible for tax deduction. You can deposit in a lump sum or in instalments.

The account becomes inactive. To revive it, deposit ₹500 for each missed year plus a ₹50 penalty per defaulted year. An inactive account cannot be used for loans or partial withdrawals until it is regularised.

No. PPF follows the EEE (Exempt-Exempt-Exempt) model. The annual contribution is deductible under Section 80C (up to ₹1.5 lakh), the interest earned each year is fully tax-free, and the maturity amount (principal + interest) is completely exempt from income tax. PPF is one of the very few investments exempt at all three stages.

The PPF deduction under Section 80C is available only under the old tax regime. Under the new (default) regime, most 80C deductions including PPF are not allowed, though the interest and maturity remain tax-free in both regimes. Choose the old regime if your 80C investments (PPF, ELSS, LIC, etc.) make it more beneficial.

PPF has a mandatory 15-year lock-in from the end of the financial year in which the account is opened. After 15 years you can withdraw the full amount, or extend in blocks of 5 years — with or without further contribution.

Partial withdrawal is allowed from the 7th financial year onwards, once per year. You can withdraw up to 50% of the balance at the end of the 4th year preceding the withdrawal, or the balance at the end of the immediately preceding year, whichever is lower.

You have two options: (1) Extension without contribution — the account keeps earning interest with no deposits, and one withdrawal a year is allowed; this is the default if you do nothing. (2) Extension with contribution — submit Form H within one year of maturity to keep depositing. Extensions run in 5-year blocks and can be repeated any number of times.

No. Non-Resident Indians cannot open a new PPF account. However, a resident who opened a PPF account and later became an NRI can continue it till maturity (15 years) but cannot extend it thereafter. On maturity the account must be closed and proceeds can be remitted abroad.

Both qualify for Section 80C up to ₹1.5 lakh. PPF gives guaranteed 7.1% tax-free returns, a 15-year lock-in and zero market risk — ideal for conservative investors. ELSS has the shortest lock-in (3 years) among 80C options and potential for higher returns (12–15% historically) but with market risk; LTCG above ₹1.25 lakh is taxed at 12.5%. Choose PPF for guaranteed risk-free growth; ELSS for potentially higher, market-linked returns.

Yes. A parent or legal guardian can open a PPF account on behalf of a minor. However, the combined deposit of the guardian's own account and the minor's account cannot exceed ₹1,50,000 in a financial year for 80C purposes.