Public Provident Fund (PPF) Calculator
Calculate your guaranteed maturity corpus, annual interest compounding, and 5-year extension options with complete statutory accuracy.
PPF Parameters
Maturity Projection
Year-by-Year Compounding Schedule
| Year | Opening Balance | Deposit Made | Interest Credited | Closing Balance |
|---|
How Public Provident Fund (PPF) Compounding Works
The Public Provident Fund (PPF) is a government-backed fixed-income investment established under the Public Provident Fund Scheme. Known for providing guaranteed sovereign safety and completely tax-free returns, PPF accounts operate under an annual compounding cycle with strict deposit windows.
F = P × [((1 + r)n – 1) / r] × (1 + r)
Where:
• F: Maturity corpus value.
• P: Deposit amount made on or before April 5th.
• r: Government-notified interest rate (Annual Rate / 100).
• n: Number of completed financial years (15, 20, 25, or 30).
The Critical 5th-of-the-Month Interest Calculation Rule
A unique nuance of PPF rules is the statutory timing window for deposits. Although interest is credited to the account once a year on March 31st, it is computed monthly on the lowest balance maintained between the close of the 5th day and the last day of the calendar month.
- Depositing on or before the 5th: The newly deposited money earns interest for that calendar month.
- Depositing after the 5th: You forfeit interest on that deposit for the entire month, and interest accrual begins only from the 1st of the subsequent month.
- Lump-Sum Best Practice: For investors contributing the maximum annual limit of 150,000, depositing the entire amount between April 1st and April 5th captures an extra month of compounding for the entire financial year.
Understanding the 5-Year Extension Blocks Beyond 15 Years
While standard PPF accounts mature after 15 full financial years, subscribers can retain and compound their wealth indefinitely using 5-year block extensions:
| Extension Framework | Deposit Permitted? | Interest Accrual Status | Withdrawal Flexibility |
|---|---|---|---|
| Extension with Contributions | Yes (Up to 150,000/yr) | Entire corpus continues to compound at the prevailing rate. | Up to 60% of balance at start of extension block. |
| Extension without Contributions | No fresh deposits allowed | Balance continues earning regular interest tax-free. | One withdrawal allowed per financial year. |
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Frequently Asked Questions
Under PPF scheme rules, interest is calculated on the minimum balance maintained between the close of the 5th day and the last day of the calendar month. To maximize your monthly interest earnings, always deposit funds on or before the 5th day of the month.
The maximum statutory limit for deposits in a PPF account is 150,000 per financial year. Deposits exceeding this limit do not earn interest and are not eligible for tax deductions under Section 80C.
Yes, upon completion of the mandatory 15-year tenure, subscribers can extend their PPF account in blocks of 5 years indefinitely. The extension can be done with further fresh contributions or without fresh contributions (where the existing balance continues earning statutory interest).
PPF qualifies for the Exempt-Exempt-Exempt (EEE) tax status under Indian tax law. The invested amount is tax-deductible under Section 80C (Exempt), the interest earned annually is 100% tax-free (Exempt), and the entire maturity proceeds at withdrawal are completely exempt from income tax (Exempt).
Statutory Compliance & Ministry of Finance Accuracy
Calculations follow the Public Provident Fund Scheme provisions. Interest compounding respects the 5th-of-the-month cut-off, annual compounding frequency, and official 5-year block extension frameworks.
Disclaimer: This calculation tool is provided for educational and self-directed financial evaluation purposes only. PPF interest rates are declared quarterly by the Ministry of Finance and may vary over time. Consult a certified financial advisor before finalizing long-term asset allocations.