How is PPF interest calculated?

Interest accrues on the lowest balance between the 5th and the last day of each month and is credited on 31 March. Investing before the 5th of the month — or the full ₹1.5 lakh before 5 April — earns the most interest.

Is PPF better than an equity mutual fund?

They do different jobs. PPF is a tax-free, guaranteed-rate debt allocation with a long lock-in; equity funds carry market risk with higher long-run return potential. Most goal-linked plans use both, weighted by the time horizon.

PPF is in the exempt-exempt-exempt (EEE) category — contributions qualify for deduction under the old tax regime, and the interest and maturity amount are tax-free.

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PPF Calculator

The Public Provident Fund is a 15-year, government-backed savings scheme with tax-free interest and maturity. This calculator estimates what your yearly contributions will be worth at maturity.

PPF Calculator

Maturity value of your Public Provident Fund contributions.

Blank gray fields need your amounts. Gray values are recommended starting assumptions and can also be changed. Green fields have been entered or changed.

Yearly contribution₹Interest rate% p.a.Tenureyears

Total invested: ₹0
Interest earned: ₹0
Maturity value: ₹0
Matures in: 2041

PPF allows ₹500 to ₹1,50,000 a year, compounds annually, and has a 15-year lock-in extendable in blocks of 5 years. Contributions, interest and maturity are all tax-free (EEE). The government resets the rate every quarter.

How to use this calculator

Enter your yearly contribution — the limit is ₹1,50,000 per financial year.
Use the current PPF rate; the government resets it every quarter.
Keep the tenure at 15 years, or extend in blocks of 5 years.

Frequently asked questions

How is PPF interest calculated?: Interest accrues on the lowest balance between the 5th and the last day of each month and is credited on 31 March. Investing before the 5th of the month — or the full ₹1.5 lakh before 5 April — earns the most interest.
Is PPF better than an equity mutual fund?: They do different jobs. PPF is a tax-free, guaranteed-rate debt allocation with a long lock-in; equity funds carry market risk with higher long-run return potential. Most goal-linked plans use both, weighted by the time horizon.
Is PPF taxable?: PPF is in the exempt-exempt-exempt (EEE) category — contributions qualify for deduction under the old tax regime, and the interest and maturity amount are tax-free.

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Disclaimer: Calculations are illustrative and assume constant returns. Mutual fund investments are subject to market risks. Read all scheme related documents carefully.