PPF Calculator — Maturity, Interest & Yearly Growth

The PPF rate for FY 2026-27 is 7.1% per annum, set by the Government of India and reviewed quarterly. The rate has held at 7.1% for several quarters but may revise based on G-Sec yields. Interest is calculated on the lowest balance between the 5th and the last day of each month, and credited annually at year-end.

Minimum ₹500 per year, maximum ₹1,50,000 per year. Contributions above ₹1,50,000 in a single financial year are NOT eligible for any interest — they sit idle in your account until withdrawn. Spread contributions before the 5th of any month to maximise interest. Joint accounts and HUF accounts are not allowed (since 2005).

PPF has a 15-year lock-in (technically 15 financial years — your account closes at the end of the 15th FY after opening). After 15 years you can: (a) close and withdraw the entire amount tax-free, (b) extend in 5-year blocks with fresh contributions, or (c) extend in 5-year blocks without contributions (interest keeps accruing). Partial withdrawals are allowed from year 7 onwards.

Yes — PPF enjoys EEE (Exempt-Exempt-Exempt) status. Contributions up to ₹1,50,000 are deductible under Section 80C, the interest earned each year is tax-free, and the maturity proceeds are tax-free. This makes PPF one of the very few EEE instruments left in India after Budget 2023 limited LIC and ULIP exemptions. Note: 80C deduction is unavailable in the new tax regime.

Yes, between year 3 and year 6. The maximum loan is 25% of the balance at the end of the 2nd year preceding the loan year, repayable in 36 months. The interest rate is 1% per annum above the prevailing PPF rate. Loans are useful as a short-term, low-cost alternative to personal loans — but partial withdrawals from year 7 are usually simpler.

If you can, deposit ₹1,50,000 in one shot before April 5th — this maximises interest because the full amount earns 7.1% for the entire year. If splitting monthly, deposit before the 5th of each month (interest is calculated on the lowest balance between the 5th and month-end). A lump sum on April 5 typically beats 12 equal monthly instalments by 4–5% over the full 15-year tenure.

Yes for the standard model — contribution at start of year, annual compounding at year-end. Real PPF interest is calculated monthly on the lowest balance between the 5th and month-end, which is slightly different. For someone depositing the full amount before April 5 each year, the calculator's number matches the actual PPF maturity within ₹100. For mid-year or split deposits, expect a small variance.