PPF Returns Calculator
Calculate the total returns on your PPF investment over 15-30 years. Understand how your money grows tax-free with compound interest and estimate your wealth accumulation through PPF.
Understanding Public Provident Fund (PPF)
Public Provident Fund (PPF) is a government-backed long-term savings scheme introduced in 1968. It offers guaranteed returns with sovereign guarantee and complete tax exemption under the EEE (Exempt-Exempt-Exempt) category, making it one of the safest investment options in India.
Key PPF Features
- Lock-in Period: 15 years (can extend in blocks of 5 years indefinitely)
- Investment Limit: Minimum ₹500, Maximum ₹1.5 Lakh per financial year
- Tax Status: EEE - Investment, interest, and maturity all tax-free
- Risk Level: Zero risk (Sovereign guarantee by Government of India)
- Interest Compounding: Annual compounding, calculated monthly
Example Calculations
| Yearly | Period | Maturity | Investment | Interest |
|---|---|---|---|---|
| ₹1,00,000 | 25 years | ₹67,67,829 | ₹25,00,000 | ₹42,67,829 |
| ₹1,50,000 | 30 years | ₹1,39,96,584 | ₹45,00,000 | ₹94,96,584 |
PPF vs Other Investment Options
While PPF offers guaranteed tax-free returns with zero risk, the 15-year lock-in may not suit everyone. For higher returns with moderate risk, explore SIP Calculator for mutual funds. For shorter lock-in with tax benefits, check FD Calculator for 5-year tax-saving FDs.
PPF Withdrawal Rules
- Partial Withdrawal: Allowed from 7th financial year (50% of 4th preceding year balance)
- Loan Against PPF: Available from 3rd to 6th year at 1% above PPF rate
- Premature Closure: Allowed after 5 years for specific reasons (medical, education)
Frequently Asked Questions
How much returns can I expect from PPF in 15 years?
With max investment of ₹1.5 lakh/year at 7.1%, you can accumulate approximately ₹40.68 lakh in 15 years. Your total investment of ₹22.5 lakh earns around ₹18.18 lakh as tax-free interest.
Is PPF better than FD for returns?
PPF offers EEE (Exempt-Exempt-Exempt) tax benefits making effective returns higher than FD. While FD interest is taxable, PPF maturity is completely tax-free. PPF also offers sovereign guarantee like FD.