Public Provident Fund (PPF) Calculator
🪙 Public Provident Fund (PPF): A Complete Guide for Indian Investors
Looking for a way to grow your money safely while saving taxes? You’re not alone — thousands of Indians trust the Public Provident Fund (PPF) to achieve their long-term goals. Let’s explore what PPF is, why it’s so popular, and how you can make the most of it — explained in a friendly, easy-to-understand way.
📖 What is PPF?
PPF is a government-backed savings scheme that helps you save money securely over the long term while earning good interest and saving tax. You simply open a PPF account (at a bank or post office), deposit some money every year, and after 15 years you get back your total investment plus interest — all tax-free!
Example: If you invest ₹1.5 lakh per year at the current rate of 7.1%, you could end up with around ₹41.5 lakh after 15 years. That’s why PPF is loved by risk-averse investors.
🔷 Key Features of PPF
- ✅ Tenure: 15 years (you can extend it in 5-year blocks after that)
- ✅ Minimum investment: Just ₹500 per year
- ✅ Maximum investment: ₹1.5 lakh per year
- ✅ Interest rate: ~7–8% (set by the government & revised quarterly)
- ✅ Safety: Guaranteed by the Government of India — no risk at all
- ✅ Tax benefits: Investments qualify for tax deduction under Section 80C, and maturity is tax-free
📈 Why Should You Invest in PPF?
1️⃣ Safe & Secure
If you’re worried about the stock market’s ups and downs, PPF is perfect for you. Your money is completely safe because it’s backed by the Government of India — your capital and interest are guaranteed.
2️⃣ Attractive Returns
Although not as high as equities, PPF still gives better returns than most fixed deposits or savings accounts. Over 15 years, thanks to compounding, you build a healthy corpus. For example, investing ₹12,500/month (₹1.5 lakh/year) grows to ~₹41.5 lakh over 15 years at 7.1%.
3️⃣ Tax Benefits
One of PPF’s biggest advantages is its EEE (Exempt-Exempt-Exempt) status. ✅ Tax deduction up to ₹1.5 lakh/year under Section 80C ✅ Interest earned is tax-free ✅ Maturity amount is also tax-free
4️⃣ Builds Discipline
Since your money is locked-in for 15 years (with some flexibility), you develop the habit of regular savings — perfect for retirement planning or future expenses like your child’s education or marriage.
🧮 How is PPF Maturity Calculated?
PPF earns compound interest annually. Every year:
- 📥 You deposit your chosen amount (up to ₹1.5 lakh)
- 💹 Interest (currently ~7.1%) is calculated on the total balance
- 🔄 The amount keeps growing with compounding
The Wealthlook PPF Calculator above does this math for you instantly — just enter your yearly investment, tenure & rate — and see the maturity value, invested amount, interest earned, and even a graph 📊 of your money’s growth!
🚪 Can You Withdraw Money Before 15 Years?
Technically, PPF has a lock-in of 15 years. But here’s the good news — you’re not totally stuck:
- From the 3rd year onwards, you can take a loan against your PPF balance.
- From the 7th year, you can make partial withdrawals.
So while it’s designed for long-term goals, it still gives you some flexibility in emergencies.
📝 How to Open a PPF Account?
Opening a PPF account is super easy and quick. Here’s how:
- Visit your preferred bank, post office, or check if your bank allows opening it online.
- Fill out the account opening form & submit your KYC documents (ID & address proof).
- Deposit an initial amount (minimum ₹500).
- That’s it! You’ll get a passbook or online account access to track your investments.
Tip: Always deposit your yearly contribution before the 5th of April every year — to maximize your interest!
📜 Example Table of Maturity Amounts
| Yearly Investment | Tenure | Interest Rate | Maturity Amount (Approx.) |
|---|---|---|---|
| ₹50,000 | 15 years | 7.1% | ~₹13.8 lakh |
| ₹1,00,000 | 15 years | 7.1% | ~₹27.7 lakh |
| ₹1,50,000 | 15 years | 7.1% | ~₹41.5 lakh |
🤔 Frequently Asked Questions (FAQs)
🔷 Is PPF better than FD?
For long-term goals, absolutely yes! PPF offers better returns, tax-free maturity, and builds discipline. But if you need liquidity or shorter duration, FDs can be more suitable.
🔷 Can NRIs invest in PPF?
No. Only resident Indians are eligible to open and invest in a PPF account.
🔷 What happens if I miss a year’s contribution?
If you fail to deposit at least ₹500 in a year, your account becomes inactive. But don’t worry — you can revive it anytime by paying a small penalty (₹50 per year of default) and the missed contributions.
🔷 Can I extend my PPF after 15 years?
Yes! After the initial 15 years, you can extend it in blocks of 5 years — with or without additional deposits — and continue enjoying the benefits.
🔷 Does the interest rate stay the same throughout?
No. The government reviews and may revise the interest rate every quarter. However, once credited to your account for a year, it remains fixed for that year.
🚀 Final Thoughts
PPF is a perfect blend of safety, decent returns, and tax savings — making it an ideal choice for cautious investors and long-term planners.
Whether you’re planning for retirement, saving for your child’s education, or simply want to secure your future, PPF is worth considering. Start early and invest regularly — let compounding work its magic!
And don’t forget to use the Wealthlook PPF Calculator above to figure out exactly how much you can grow your savings over time. 📈
📌 Need help planning your investments? Contact the Wealthlook team — we’re here to help you make smart financial decisions!