PPF Tax Calculator
What PPF is worth once its tax-free interest is priced properly, what the deposit date costs you, and what the new regime does and does not take away.
What the PPF tax calculator does
A PPF calculator shows the maturity value of a Public Provident Fund account. PPF is exempt at all three stages: the contribution deducts under Section 80C, the interest is exempt under Section 10(11), and the maturity is tax-free. Only the deduction is lost under the new tax regime — the interest and maturity stay exempt.
Your inputs
Between ₹500 and ₹1,50,000 a year. Anything above the maximum earns no interest and is returned.
When you pay it in
Each instalment is in the balance on that month's 5th, so it earns from the month it is paid.
Declared by the government and reset every quarter, so it will not stay at one figure for the whole term.
Fifteen years to begin with, then extendable in blocks of five.
Which tax regime are you on?
No Section 80C deduction here — but the interest and the maturity stay tax-free regardless.
Your income tax slab
Used to price what the tax-free interest is worth, and the deduction if you have one.
After 15 years at 7.10%
₹39,44,599
₹22,50,000 of contributions and ₹16,94,599 of interest — and every rupee of that interest is exempt under Section 10(11), as is the maturity itself.
- Contributed over the term
- ₹22,50,000
- Interest earned, all exempt
- ₹16,94,599
PPF is a Government of India small savings scheme whose rate is declared quarterly — not a mutual fund and not market-linked; GrowIQ Capital does not distribute it. Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.
What a taxable deposit would have to pay
7.10% looks modest beside equity. Beside a fixed deposit it is a different number, because a deposit’s interest is taxed every year and PPF’s never is.
A deposit would need to pay
10.14%
Same money in a deposit taxed at 30%
₹33.16L
What the exemption is worth by maturity
₹6.28L
The deposit is assumed to pay the same 7.10% and to follow the same schedule, so the only difference between the two columns is that its interest is taxed at your slab as it is credited — which takes the tax out of the compounding, not just off the total. It is not a claim that a deposit pays what PPF pays.
PPF is a Government of India small savings scheme whose rate is declared quarterly — not a mutual fund and not market-linked; GrowIQ Capital does not distribute it. Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.
Paying later costs you ₹1,23,610
Interest is worked out on the lowest balance between the 5th and the last day of each month, so a deposit landing on the 6th earns nothing that month. Over 15 years, the same ₹1,50,000 a year is worth this much depending only on when it goes in:
| When you pay | Matures at | Given up |
|---|---|---|
| All of it on 1 April | ₹40,68,209 | — |
| Monthly, by the 5thyours | ₹39,44,599 | − ₹1,23,610 |
| Monthly, after the 5th | ₹39,22,125 | − ₹1,46,085 |
| All of it in late March | ₹37,98,515 | − ₹2,69,695 |
Identical contributions in every row. The only difference is the date on the deposit slip, which makes this the rare piece of advice that costs nothing at all to follow.
PPF is a Government of India small savings scheme whose rate is declared quarterly — not a mutual fund and not market-linked; GrowIQ Capital does not distribute it. Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.
The new regime takes the deduction and nothing else
Section 80C does not apply under the new regime, so a contribution made from there earns no deduction. But the interest stays exempt under Section 10(11) and the maturity stays tax-free — neither depends on your regime. A PPF account on the new regime is still a tax-free bond, which is a different conclusion from ELSS, where the new regime removes the deduction and leaves the gains taxable.
PPF is a Government of India small savings scheme whose rate is declared quarterly — not a mutual fund and not market-linked; GrowIQ Capital does not distribute it. Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.
Year by year
Interest is credited once a year, on 31 March, and compounds from there.
| Year | Opening | Paid in | Interest | Closing |
|---|---|---|---|---|
| 1 | ₹0 | ₹1.5L | ₹5,769 | ₹1.56L |
| 2 | ₹1.56L | ₹1.5L | ₹16,828 | ₹3.23L |
| 3 | ₹3.23L | ₹1.5L | ₹28,673 | ₹5.01L |
| 4 | ₹5.01L | ₹1.5L | ₹41,359 | ₹6.93L |
| 5 | ₹6.93L | ₹1.5L | ₹54,945 | ₹8.98L |
| 6 | ₹8.98L | ₹1.5L | ₹69,497 | ₹11.17L |
| 7 | ₹11.17L | ₹1.5L | ₹85,081 | ₹13.52L |
| 8 | ₹13.52L | ₹1.5L | ₹1,01,772 | ₹16.04L |
| 9 | ₹16.04L | ₹1.5L | ₹1,19,647 | ₹18.74L |
| 10 | ₹18.74L | ₹1.5L | ₹1,38,792 | ₹21.62L |
| 11 | ₹21.62L | ₹1.5L | ₹1,59,297 | ₹24.72L |
| 12 | ₹24.72L | ₹1.5L | ₹1,81,257 | ₹28.03L |
| 13 | ₹28.03L | ₹1.5L | ₹2,04,776 | ₹31.58L |
| 14 | ₹31.58L | ₹1.5L | ₹2,29,965 | ₹35.38L |
| 15 | ₹35.38L | ₹1.5L | ₹2,56,942 | ₹39.45L |
PPF is a Government of India small savings scheme whose rate is declared quarterly — not a mutual fund and not market-linked; GrowIQ Capital does not distribute it. Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.
What this assumes
- One rate for the whole term. The PPF rate is declared by the government and reset every quarter. It has ranged widely over the life of the scheme, and no fifteen-year projection at a single figure will match what the account actually earns.
- The same contribution every year. The ₹1.5 lakh ceiling is not indexed, so its real value falls over the term.
- Fifteen years is counted from the end of the financial year in which the account was opened. The effective wait is therefore up to sixteen years, and this model counts whole years from the first contribution.
- Partial withdrawals from the seventh year and loans from the third are not modelled — both would reduce the balance and the interest it earns. Surcharge is excluded; cess is included in the tax saved.
No returns are assured or guaranteed. Any illustration of returns is a mathematical projection, not a promise. PPF is a Government of India small savings scheme operated through banks and post offices; GrowIQ Capital is a mutual fund distributor and neither distributes it nor provides tax advice. This is arithmetic on the figures you entered, for discussion with a qualified tax adviser.
How the PPF calculation works
Interest = rate × lowest balance between the 5th and month end, credited each 31 March
Interest accrues on the lowest balance between the 5th and the last day of every month, so a deposit made on the 6th earns nothing for that month — which is why the same contribution paid on 1 April is worth materially more than the same amount paid in late March. It is credited once a year on 31 March and compounds annually. The contribution deducts under Section 80C within the ceiling shared with EPF, insurance and ELSS, and that deduction is the only part the new regime removes: the interest stays exempt under Section 10(11) and the maturity stays tax-free either way. The pre-tax equivalent rate is the PPF rate divided by one minus your marginal tax rate.
Frequently asked questions
Is PPF still worth it under the new tax regime?
The Section 80C deduction is not available under the new regime, but nothing else changes: the interest remains exempt under Section 10(11) and the maturity remains tax-free. So a PPF account on the new regime is still a tax-free debt investment, which is a different conclusion from ELSS, where the new regime removes the deduction and the gains stay taxable.
Why does the date I deposit into PPF matter?
Interest is calculated on the lowest balance between the 5th and the last day of each month, so a deposit made on the 6th earns nothing for that month. Contributing on or before the 5th — and ideally the whole year's amount on 1 April — earns a full twelve months of interest instead of eleven or none.
What return would a fixed deposit need to match PPF?
Divide the PPF rate by one minus your marginal tax rate. At 7.1% tax-free and a 30% slab, a taxable deposit would need to pay about 10.14% before tax to leave you the same money, because its interest is taxed every year while PPF's is not.
How much can I put into PPF each year?
₹1.5 lakh in a financial year, with a minimum of ₹500 to keep the account active. Anything deposited above the maximum earns no interest and is returned without interest. Note that this ceiling and the Section 80C ceiling are both ₹1.5 lakh but are different limits.
Does PPF count towards my ₹1.5 lakh 80C limit?
Yes, and it shares that ceiling with EPF, life insurance premiums, home loan principal, tuition fees and ELSS. If those already fill it, a PPF contribution earns no deduction — but unlike ELSS it still earns tax-free interest, so it is not left doing nothing.
How long is money locked in a PPF account?
Fifteen years, counted from the end of the financial year in which the account was opened, so the effective wait is up to sixteen years. It can then be extended in blocks of five years. Partial withdrawals are permitted from the seventh year and a loan from the third.
GrowIQ Capital provides financial data analytics, market information and educational content. We are not a SEBI-registered Investment Adviser or Research Analyst. Nothing on this platform constitutes investment advice or a recommendation to buy or sell any security. No returns are assured or guaranteed. Any illustration of returns is a mathematical projection, not a promise. Past performance is not indicative of future returns and does not guarantee future results.