PPF Calculator — Maturity, Interest & Year-by-Year Growth

Any resident Indian citizen can open one PPF account in their own name and one on behalf of each minor child or person of unsound mind. PPF accounts can be opened at the State Bank of India, most public and major private banks (HDFC, ICICI, Axis, Kotak, etc.), and at India Post offices. NRIs cannot open new PPF accounts, but an account opened while resident may be continued (without extension) until maturity. Hindu Undivided Families (HUFs) and trusts are not eligible.

PPF has a strict 15-year lockin from the end of the financial year in which the account was opened — so an account opened in May 2026 matures on 1 April 2042. Partial withdrawals are allowed from the 7th financial year onward, capped at 50% of the balance at the end of the 4th preceding year (or the year before, whichever is lower). One loan against the PPF balance is permitted between years 3 and 6, capped at 25% of the year-2 closing balance.

After the initial 15-year maturity, you can extend the PPF in blocks of 5 years — twice extendable up to 35 years total — either with fresh deposits or without. With fresh deposits, you must submit Form H within one year of maturity and you can withdraw up to 60% of the balance at the start of the extension block (spread over 5 years, max one withdrawal per year). Without fresh deposits, the balance keeps earning interest and you can withdraw any amount, up to once per financial year.

PPF interest is set quarterly by the Ministry of Finance (currently 7.1% for FY 2026-27) and is compounded annually. It is calculated each month on the lowest balance between the 5th and the last day of the month, and credited to your account on 31 March every year. For maximum returns, deposit your full ₹1,50,000 between 1 and 5 April so that the entire amount earns interest for the full financial year.

PPF enjoys India’s top-tier EEE (Exempt-Exempt-Exempt) tax status. Deposits up to ₹1,50,000 per year qualify for a deduction under Section 80C of the Income Tax Act (only useful under the Old Tax Regime — the New Regime does not offer 80C). Interest credited every year is fully tax-free, and the maturity amount including interest is also tax-free at withdrawal. This makes PPF one of the few remaining EEE-status investments in India alongside EPF and Sukanya Samriddhi.

PPF and equity mutual funds serve different purposes. PPF gives a guaranteed, sovereign-backed, tax-free 7.1% — equivalent to a ~10% pre-tax return for someone in the 30% bracket. That’s the safe, illiquid debt anchor of a portfolio. Equity mutual funds historically deliver 12–14% pre-tax over long horizons but with volatility and 12.5% LTCG tax above ₹1.25 lakh of gains. Most personal-finance advisors recommend using PPF as your debt allocation and SIPs in equity funds for growth — not one instead of the other.