PPF Calculator
Calculate maturity value of your Public Provident Fund investment.
PPF Maturity Details
Complete Guide to Public Provident Fund (PPF)
The Public Provident Fund (PPF) is one of the most popular and tax-efficient long-term savings schemes backed by the Government of India. Offering guaranteed, risk-free returns alongside massive tax benefits, it is a staple in almost every conservative investor's portfolio. Our PPF Calculator helps you project your wealth accumulation over its 15-year tenure.
Key Features of a PPF Account
- Lock-in Period: A PPF account has a mandatory lock-in period of 15 years. This enforces strict financial discipline, making it an excellent vehicle for retirement planning or children's education funds.
- Investment Limits: You can invest a minimum of ₹500 and a maximum of ₹1.5 Lakhs per financial year. You can invest via lump sum or through a maximum of 12 installments in a year.
- Sovereign Guarantee: Because it is backed directly by the Central Government, your principal and interest are 100% secure. It is entirely immune to stock market volatility.
The "EEE" Tax Benefit Status
PPF is one of the few financial instruments in India that enjoys the highly coveted Exempt-Exempt-Exempt (EEE) tax status:
- Exempt 1 (Investment): The amount you invest every year (up to ₹1.5 Lakhs) is eligible for tax deduction under Section 80C of the Income Tax Act.
- Exempt 2 (Interest): The interest you earn every year compounds completely tax-free.
- Exempt 3 (Maturity): When you withdraw your entire corpus after 15 years, the final maturity amount is completely tax-free.
A Crucial Pro-Tip for PPF Investors
PPF interest is calculated on the minimum balance in your account between the 5th and the last day of every month. Therefore, if you are making monthly deposits, ensure your deposit hits the account on or before the 5th of the month to earn interest for that entire month. If you deposit on the 6th, you lose the interest for that month.