What is the PPF Maturity Calculator?
This calculator is for the Indian Public Provident Fund (PPF) scheme, a government-backed long-term savings instrument with a standard 15-year tenure and tax-free returns under EEE status. It estimates how much your account will grow to at maturity based on a fixed yearly deposit, the prevailing interest rate (7.1% p.a. as of recent quarters), and the number of years you contribute. Interest is compounded annually.
How to use it
Enter the amount you plan to deposit each year (up to \(\text{₹}1{,}50{,}000\) is the statutory annual limit), the current PPF interest rate, and the tenure in years. The calculator returns your final maturity value along with the total amount invested and the total interest earned.
The formula explained
Each year's deposit earns compound interest for the remaining years until maturity. If you deposit D at the start of every year for n years, the first deposit compounds for n years, the second for n−1 years, and so on. The maturity value is the sum:
$$FV = \sum_{i=1}^{n} D \times (1 + r)^{\,n-i+1}$$where r is the annual rate as a decimal. This model assumes deposits are made at the start of each year.
Worked example
Suppose you deposit \(\text{₹}1{,}50{,}000\) every year at 7.1% for 15 years. Each deposit grows by 7.1% for its remaining years. The total maturity comes to roughly \(\text{₹}40.68\ \text{lakh}\), of which \(\text{₹}22.5\ \text{lakh}\) is your own contribution and about \(\text{₹}18.18\ \text{lakh}\) is interest.
FAQ
Is PPF interest taxable? No. PPF enjoys EEE (Exempt-Exempt-Exempt) status — contributions, interest, and maturity proceeds are all tax-free in India.
What is the maximum yearly deposit? The current statutory limit is \(\text{₹}1{,}50{,}000\) per financial year.
Does the interest rate stay fixed? No, the government revises the PPF rate quarterly. This calculator assumes the rate you enter stays constant for the full tenure, so treat the result as an estimate.
