Post Office PPF Calculator – Public Provident Fund
Calculate your PPF maturity amount, total interest, and year-wise growth with our advanced calculator. Get a full step-by-step breakdown of how your investment compounds over the 15-year lock-in period. Download or share your results instantly.
📘 Step-by-step calculation
1. Annual Deposit (P) = ₹1,50,000, Interest Rate (r) = 7.1%, Tenure = 15 years.
2. PPF compounds annually. Each year’s deposit earns interest for the remaining years until maturity.
3. Year 1 deposit grows for 14 years: ₹1,50,000 × (1.071)^14 ≈ ₹3,92,000.
4. Year 15 deposit grows for 0 years: ₹1,50,000 × (1.071)^0 = ₹1,50,000.
5. Maturity = Sum of all yearly future values. Interest = Maturity − Total Invested.
📊 Year-wise Growth Breakdown
| Year | Opening Balance | Deposit | Interest Earned | Closing Balance |
|---|
What is the Public Provident Fund (PPF)?
The Public Provident Fund (PPF) is a long-term, government-backed savings scheme available at Post Offices and authorized banks across India. It was introduced in 1968 to encourage small savings while offering attractive tax benefits. The scheme has a 15-year lock-in period, after which you can extend it in blocks of 5 years .
PPF is one of the most popular investment options because it offers EEE (Exempt-Exempt-Exempt) tax status: contributions up to ₹1.5 lakh per year qualify for Section 80C deduction, and both the interest earned and the maturity amount are fully tax-free. The interest rate is notified quarterly by the Government of India and currently stands at 7.1% per annum, compounded annually .
PPF Maturity Calculation Formula
PPF uses annual compounding. Because deposits are made every year (optionally in up to 12 installments), the maturity amount is the sum of the future value of each year’s contribution, compounded for the remaining years until the 15-year lock-in ends.
Where:
- P = Annual deposit amount (₹500 to ₹1,50,000)
- r = Annual interest rate (as a decimal, e.g., 7.1% = 0.071)
- n = Number of years the deposit remains invested until maturity
For example, the deposit made in Year 1 stays invested for 14 years (Year 1 to Year 15). The deposit made in Year 15 stays invested for 0 years.
Example Calculation (Post Office PPF – Annual Compounding)
Example: You deposit ₹1,50,000 every year for 15 years in a PPF account at 7.1% p.a. (compounded annually). What is the maturity amount?
- Total Invested: ₹1,50,000 × 15 = ₹22,50,000
- Deposit in Year 1: Grows for 14 years → ₹1,50,000 × (1.071)^14 ≈ ₹3,92,000
- Deposit in Year 2: Grows for 13 years → ₹1,50,000 × (1.071)^13 ≈ ₹3,66,000
- …
- Deposit in Year 15: Grows for 0 years → ₹1,50,000
- Sum of all 15 future values ≈ ₹48,50,000 (approximately)
- Estimated Interest: Maturity − Total Invested ≈ ₹26,00,000
Note: Actual maturity will depend on the interest rates notified by the government each quarter during the tenure. The calculator uses a constant rate for illustration.