PPF calculator with extensions and deposit timing

What PPF is

The Public Provident Fund is a government savings scheme you can open at a post office or most banks. You deposit between ₹500 and ₹1.5 lakh in each financial year, the government sets the interest rate every quarter, and the account matures after 15 full financial years. The rate for October–December 2026 is 7.1% a year.

PPF is fully tax-exempt: deposits qualify for the Section 123 (old 80C) deduction under the old tax regime, the interest is not taxed each year, and the maturity amount is tax-free. That combination, usually written EEE, is what sets it apart from a fixed deposit.

How PPF interest is calculated

Interest is worked out every month on the lowest balance between the 5th and the last day of that month, then added up and credited once a year on 31 March. In practice this means money deposited by the 5th earns interest for that month, money deposited on the 6th does not, and the interest compounds yearly rather than monthly.

The calculator above follows that rule month by month. ₹1.5 lakh a year at 7.1% for 15 years, deposited by 5 April each year, comes to ₹40,68,209: ₹22.5 lakh of deposits and ₹18.18 lakh of interest.

Why 5 April matters

If you deposit the full year's amount by 5 April, all of it earns interest for twelve months. If you split it into twelve monthly deposits, the later instalments earn for fewer months. Over 15 years at 7.1% with ₹1.5 lakh a year, the difference is about ₹1.24 lakh. Switch between the two timing options above to see the figure for your own amount.

Extending after 15 years

At maturity you can close the account, or extend it in blocks of 5 years, as many times as you like. You can extend with fresh deposits (you need to tell the bank within a year of maturity) or without them, in which case the balance keeps earning interest at the prevailing rate. Using the same ₹1.5 lakh a year at 7.1%:

• 20 years, still depositing: about ₹66.6 lakh
• 20 years, deposits stopped at 15: about ₹57.3 lakh
• 25 years, still depositing: about ₹1.03 crore

Set "Keep the account for" to 20, 25 or 30 years and use the toggle to compare the two kinds of extension.

Partial withdrawals and loans

From the seventh financial year you can make one partial withdrawal a year, up to 50% of the balance at the end of the fourth year before the withdrawal, or of the previous year, whichever is lower. Between the third and sixth years you can take a loan against the balance instead. Neither changes the maturity date.

Common questions