PPF Calculator
Including what happens if you extend beyond 15 years
What each extension is worth
| Option | You deposit | You get |
|---|---|---|
| Enter an amount | ||
- The rate is fixed at the current 7.1% and held constant throughout. The government revises small savings rates every quarter, so your actual maturity amount will differ.
- Deposits are treated as made at the start of each year, with interest compounded annually.
- Actual interest is calculated on the lowest balance between the 5th and the last day of each month, and credited at the end of the financial year. Depositing before the 5th of April earns you a full year of interest.
- Minimum ₹500 and maximum ₹1,50,000 in a financial year.
- An account technically matures 15 years from the end of the financial year in which it was opened, so your real maturity date may be a few months later than the year shown here.
- Tax saved assumes the full deposit qualifies under Section 80C at a 30% slab, available under the old tax regime only.
The Thing Most PPF Calculators Leave Out
Almost every PPF calculator stops at 15 years. That is where the scheme's initial term ends, so that is where the number stops.
But PPF does not have to end at 15 years. You can extend it in blocks of five years, as many times as you want, and you can do so without depositing another rupee.
The difference is not small. At the maximum deposit of ₹1,50,000 a year, held at 7.1%:
| What you do | You deposit | You get |
|---|---|---|
| Close it at 15 years | ₹22.5 lakh | ₹40.68 lakh |
| Extend to 25 years, deposit nothing more | ₹22.5 lakh | ₹80.78 lakh |
The same money nearly doubles for doing nothing. No further deposits, no fresh paperwork every year, no risk. That is the case for treating PPF as a long-term instrument rather than a fifteen year commitment.
How PPF Works
| Rule | Detail |
|---|---|
| Interest rate | 7.1% per year, compounded annually, reviewed every quarter |
| Minimum deposit | ₹500 in a financial year |
| Maximum deposit | ₹1,50,000 in a financial year, across all your PPF accounts |
| Initial term | 15 years |
| Extension | Blocks of 5 years, unlimited, with or without further deposits |
| Loan facility | From the 3rd financial year to the 6th |
| Partial withdrawal | From the 7th financial year |
| Tax treatment | Exempt at deposit, on interest, and at maturity |
| Where to open | Any post office or authorised bank |
| Number of accounts | One per person |
Who Should Invest in PPF?
PPF is suitable for individuals seeking long-term, government-backed, low-risk savings with tax benefits.
- Salaried employees
- Self-employed professionals
- Small business owners
- Parents planning long-term savings
- Investors seeking tax-efficient fixed-income investments
- Conservative investors looking for capital protection
Since the scheme is backed by the Government of India, it remains one of the safest long-term investment options available to Indian residents.
Extending: The Choice Nobody Explains Properly
When your account completes 15 years, you have three options, and one of them happens by default if you do nothing.
1. Close it and take the money
The full balance is paid out, entirely tax free.
2. Extend with fresh deposits
You continue depositing and the account runs another five years. This requires paperwork. You must submit Form H at your bank or post office within one year of maturity. Miss that window and you lose the option for that block.
3. Extend without deposits
This is the default. If you do nothing at all, the account continues and keeps earning interest at the prevailing rate. You simply stop paying in.
What most people do not realise is that this third option is available and costs nothing. The balance keeps compounding, and you can withdraw once a year if you need money.
Which one to pick
- If you need the money, close it. That is what it was for.
- If you have surplus income and want more tax-free growth, extend with deposits and keep claiming the 80C deduction.
- If you do not need the money but have nowhere better to put it, extend without deposits. Use the calculator above to see what that alone is worth.
The 5th of April Matters More Than People Think
Interest is calculated on the lowest balance in your account between the 5th and the last day of each month, and credited once a year at the end of the financial year.
That single rule has a practical consequence.
Deposit before the 5th of April and that money earns interest for all twelve months. Deposit the same amount in March and it earns interest for almost none of that year.
If you contribute once a year, do it in the first week of April. Over fifteen years, the same money in the same account produces a noticeably larger figure purely because of when it went in.
If you deposit monthly, put the money in before the 5th of each month for the same reason.
Loans and Withdrawals Before Maturity
PPF is not as locked up as people assume.
Loan against your balance is available from the 3rd financial year to the 6th. You borrow against your own money and repay it with a small interest charge on top of the scheme rate.
Partial withdrawal becomes available from the 7th financial year, subject to the limits set under the scheme.
Premature closure is permitted after five completed years, but only for specific reasons such as serious medical treatment of a family member, higher education, or a change in residency status. It carries a penalty of 1% on the interest, applied for the whole period the account has run.
The year-by-year table above marks the loan window and the withdrawal year so you can see when each becomes available.
Common Mistakes PPF Investors Make
- Depositing money after the 5th of the month and missing monthly interest benefits.
- Assuming the PPF interest rate remains fixed forever.
- Not contributing regularly every financial year.
- Ignoring the account extension option after 15 years.
- Withdrawing funds prematurely without understanding the long-term impact.
- Not utilizing the full annual investment limit of ₹1.5 lakh when eligible.
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