PPF Calculator 2026 — Public Provident Fund Returns

PPF (Public Provident Fund) is a government-backed long-term savings scheme with guaranteed returns. The current PPF interest rate is 7.1% per annum (Q4 FY 2025-26), which is set quarterly by the Ministry of Finance. PPF has a 15-year lock-in period and you can invest between ₹500 and ₹1,50,000 per year. It offers EEE (Exempt-Exempt-Exempt) tax status, meaning deposits, interest, and maturity proceeds are all tax-free.

PPF interest is calculated monthly on the lowest balance between the 5th and the last day of each month, but credited to the account only once a year on March 31. To maximize interest, deposit your annual amount before the 5th of April (or the start of each month if investing monthly). The interest is compounded annually.

PPF has a mandatory 15-year lock-in period from the year of opening. Partial withdrawals are allowed from the 7th financial year onwards — you can withdraw up to 50% of the balance at the end of the 4th preceding year. Premature closure is allowed only after 5 years for specific reasons like serious illness, higher education, or change in residential status (NRI). A loan against PPF is available from the 3rd to the 6th year.

PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — the most favorable tax treatment available in India. (1) Deposits up to ₹1.5 lakh/year qualify for Section 80C deduction under the Old Tax Regime. (2) Interest earned is completely tax-free. (3) The maturity amount is not taxable. This makes PPF's effective post-tax return equal to its pre-tax return of 7.1%, unlike FDs where interest is taxed at your slab rate.

Each serves a different purpose. PPF offers guaranteed 7.1% tax-free returns with a 15-year lock-in — ideal for risk-averse, long-term savings. FDs offer 6.5-7.25% but interest is fully taxable (effective return drops to 4.5-5% at 30% slab). ELSS mutual funds have market-linked returns (historically 12-15% CAGR) with only a 3-year lock-in, but returns are not guaranteed and LTCG above ₹1.25 lakh is taxed at 12.5%. For conservative investors maximizing 80C, PPF is often the best choice. For higher growth, ELSS is better.

NRIs cannot open a new PPF account. However, if you opened a PPF account while you were a resident Indian and later became an NRI, you can continue the existing account until its maturity (15 years from the date of opening). Post-maturity extension is not allowed for NRIs. The interest rate for NRI accounts may differ — as per some notifications, NRI PPF accounts earn only the post office savings account rate (4%) after maturity if not closed. It is advisable to close the PPF account at maturity and repatriate funds.

You can take a loan against your PPF balance from the 3rd financial year to the 6th financial year after opening. The loan amount can be up to 25% of the balance at the end of the 2nd preceding financial year. The interest rate on PPF loans is 1% above the prevailing PPF rate (currently 8.1%). The loan must be repaid within 36 months in a maximum of 2 installments. After the 6th year, partial withdrawal becomes available instead, which is generally more favorable since there is no interest to pay.

Partial withdrawal from PPF is permitted from the 7th financial year onwards. The maximum withdrawal amount is the lower of: (1) 50% of the balance at the end of the 4th preceding financial year, or (2) 50% of the balance at the end of the immediately preceding financial year. Only one withdrawal is allowed per financial year. The withdrawn amount is completely tax-free and does not need to be repaid. This makes PPF a useful emergency fund option after the initial lock-in period.

Yes, PPF accounts can be extended in blocks of 5 years after the initial 15-year maturity period, with no limit on the number of extensions. You have two options: (1) Extension with contributions — continue depositing up to ₹1.5 lakh/year and earn interest on the growing balance. (2) Extension without contributions — make no further deposits but the existing balance continues to earn interest at the prevailing rate. You must submit Form H at your bank/post office within one year of maturity to extend with contributions.

PPF interest is calculated on the minimum balance between the 5th and the last day of each month. To maximize interest, deposit your money before the 5th of each month. If you invest a lump sum annually, deposit the full ₹1.5 lakh before April 5th to earn interest for all 12 months. Depositing on April 6th instead of April 5th costs you one full month of interest. Over 15 years, optimal timing can earn you ₹50,000–₹1 lakh more in interest compared to random deposit dates.

You can nominate one or more persons for your PPF account by submitting Form F (for new nomination) or Form G (to change an existing nomination) at your bank or post office. If nominating multiple people, you must specify the share percentage for each nominee. Minors can be nominees with a guardian specified. It is crucial to keep your nomination updated — without a valid nomination, your legal heirs will need to go through a lengthy succession process involving a court order or succession certificate to claim the PPF balance.