Project PPF corpus over 15-year lock-in.
PPF maturity amount
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Interest earned (tax-free)
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Your breakdown
Updates live as you type| Item | Amount |
|---|
Worked example
Suppose you contribute the full Rs 1,50,000 a year to your PPF account at the start of each year, for the 15-year lock-in, at the current 7.1 percent rate. Because each year’s deposit is invested at the beginning of the year, it earns interest for the whole period it stays in, so the future value uses the annuity-due formula. Over 15 years you put in 15 times Rs 1,50,000, which is Rs 22,50,000 of your own money. With 7.1 percent compounding, the maturity amount grows to about Rs 40,68,209. The interest earned is the maturity value minus what you deposited, which is about Rs 18,18,209. Crucially, PPF carries EEE status, so this entire maturity amount, including the interest, is tax-free in your hands.
| Step | Amount (Rs) |
|---|---|
| Annual contribution | 1,50,000 |
| Years | 15 |
| Interest rate | 7.1 percent |
| Total invested | 22,50,000 |
| Interest earned (tax-free) | 18,18,209 |
| Maturity amount | 40,68,209 |
How it is calculated
PPF interest is compounded annually on the balance, and the scheme assumes deposits are made at the start of the year, so the calculator uses the annuity-due future-value formula. That formula sums each year’s contribution grown at the annual rate, then multiplies the ordinary annuity result by one plus the rate to account for the early-in-year timing. The annual contribution is capped at Rs 1,50,000 and the standard lock-in is 15 years. The interest rate is set by the government and reviewed every quarter, so the real outcome shifts as the rate changes. PPF enjoys exempt-exempt-exempt treatment: the contribution qualifies under Section 80C in the old regime, the interest accrues tax-free, and the maturity proceeds are tax-free. After 15 years you can extend the account in blocks of five years, with or without further deposits.