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PPF Maturity Calculator — ₹1.5L/Year at 7.1% for 15 Years (DEA Q1 2026 Rate)

This calculator uses the PPF interest rate of 7.1% per annum declared by the Department of Economic Affairs for Q1 FY 2026-27. It compounds annually on 5th of each month deposits to give you the exact maturity amount.

1. Investment Variables

Min: ₹500, Max: ₹1,50,000 per financial year.
Min: 15 years, extensions available in blocks of 5 years.

The Science of PPF Compounding & Security

The Public Provident Fund (PPF) is a popular long-term savings option in India, backed entirely by the Central Government. It offers a combination of safety, guaranteed interest rates, and excellent tax benefits, making it a cornerstone for retirement portfolios.

How Interest is Calculated

PPF interest is calculated monthly, but credited annually at the close of the financial year on March 31st. The calculation applies to the lowest balance in the account between the close of the 5th day and the end of the month. Therefore, to maximize interest, you should make your deposits on or before the 5th of each month.

Because the interest compounds annually, depositing your entire annual sum of up to ₹1.5 lakh between April 1st and April 5th yields the maximum possible returns for that financial year, giving your funds a full 12 months of compounding growth.

Frequently Asked Questions (FAQ)

What is the PPF maturity amount for ₹1.5 lakh per year for 15 years at 7.1%?

Under the current 7.1% interest rate, investing ₹1.5 lakh annually for 15 years yields a maturity of ₹40,68,209. This consists of ₹22,50,000 in total principal deposits and ₹18,18,209 in tax-free interest.

Can I extend my PPF account after 15 years in blocks of 5 years and keep earning 7.1%?

Yes. You can extend your PPF account indefinitely in blocks of 5 years with or without fresh deposits. If you continue deposits, you must submit Form 15-H before the end of the 15th year to earn 7.1% interest on new contributions.

What is the minimum and maximum amount I can deposit in a PPF account annually?

The minimum annual deposit is ₹500 to keep the account active, and the maximum is ₹1.5 lakh per financial year. Deposits exceeding ₹1.5 lakh do not earn interest and are ineligible for tax deduction under Section 80C.

How is the monthly interest calculated on my PPF balance?

PPF interest is calculated monthly on the lowest balance between the 5th day and the end of the month. To maximize returns, you should make your deposits before the 5th of each month.

Is PPF interest completely tax-free under the Income Tax Act?

Yes, PPF falls under the EEE (Exempt-Exempt-Exempt) tax category. Contributions are tax-exempt under Section 80C, the interest earned is tax-exempt, and the final maturity amount is completely tax-free at withdrawal.

Rates sourced from official government portals — see data sources & verification dates

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth Last verified: 2026-06-30

What Does This Calculator Do?

This tool helps you calculate the guaranteed money you will get from a government-backed savings plan. It tells you exactly how much cash you will accumulate after 15 years of saving. It also displays the total interest you earn, which is completely tax-free. By planning ahead with this tool, you can see how safe, long-term savings can help you reach your future financial goals.

How to Use It

  1. Yearly Investment: Type the money you want to deposit each year. The government sets the limits from ₹500 up to a maximum of ₹1,50,000 per financial year.
  2. Annual Interest Rate: Type the current rate set by the government, which is usually around 7.1% per year.
  3. Duration: Type the time period in years, which starts at 15 and can grow in 5-year blocks.

The Logic Explained Simply

  • The Concept: Think of this as a secure lockbox where you put money once a year. The government adds interest to your balance at the end of every year. In the next year, you earn interest on your original deposits plus the interest already added. Since it is backed by the government, your money is completely safe, guaranteed, and cannot be lost in the market.
  • The Formula:

F = P × [((1 + i)^n - 1) / i] × (1 + i)

Where F is the final maturity value, P is the yearly deposit amount, i is the annual interest rate, and n is the total number of years.

Real-World Calculation Breakdown

For example, if you deposit ₹1,50,000 every year into this account at an annual interest rate of 7.1% for a duration of 15 years. You will deposit a total of ₹22,50,000 over this period. The compound interest engine adds ₹18,18,209 to your account. By the end of the 15-year term, your total maturity value will be ₹40,68,209, and you do not have to pay any tax on this final amount.

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