How PPF Investment Grows (And Why It’s a Tax‑Free Powerhouse)
The Public Provident Fund is one of the few instruments that offers EEE (Exempt‑Exempt‑Exempt) tax benefits: the deposit gets a deduction under Section 80C, the interest earned is tax‑free, and the maturity amount is also tax‑free. With a minimum tenure of 15 years (extendable in blocks of 5 years up to 50 years) and a current interest rate of 7.1% compounded yearly, PPF rewards long‑term, disciplined investors.
PPF Basics: ₹1.5 Lakh Limit and Lock‑in
You can invest anywhere from ₹500 to ₹1,50,000 per financial year. The money is locked in for 15 years, though partial withdrawals are allowed from the 7th year. The interest rate is set by the government quarterly and has historically ranged from 7.1% to 8.7%. The calculator uses the current rate but lets you adjust it to project different scenarios.
Step‑by‑Step: Project Your PPF Corpus
- Visit the PPF Calculator. Enter your yearly investment amount (max ₹1,50,000).
- Adjust the interest rate if you want to simulate older rates or a conservative estimate, and choose the duration (15‑50 years).
- Click “Calculate” to see the final maturity, total investment, and tax‑free interest. The year‑wise table shows how your balance compounds.
The Power of Yearly Compounding
PPF interest is calculated on the minimum balance between the 5th and the last day of each month, but credited at year‑end. This means deposits made before the 5th of a month count for that month. The longer you stay invested beyond 15 years, the more dramatic the compounding effect becomes—a ₹1.5 lakh yearly investment over 25 years can grow past ₹1 crore entirely tax‑free.
Frequently Asked Questions
Can I have multiple PPF accounts?
Only one per person, except a minor account managed by a parent.
What happens after 15 years?
You can withdraw the entire amount or extend it indefinitely in 5‑year blocks with or without fresh contributions.
Is the ₹1.5 lakh limit per person or per account?
Per person. If you have a minor account, the combined limit for you and the minor is ₹1.5 lakh.
Can I take a loan against PPF?
Yes, between the 3rd and 6th year, up to 25% of the balance.
Is it free and private?
Yes, the calculator works offline in your browser.
Disclaimer: This is general information and not financial advice. PPF rules are subject to government changes.
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