Introduction
Public Provident Fund (PPF) is a government-backed savings scheme with EEE tax status — investment, interest, and maturity are all tax-free. With a 15-year lock-in and current interest rate of 7.1% compounded annually, PPF is one of the safest long-term investment options in India.
Numverto PPF Calculator shows year-wise interest and balance growth for your chosen annual investment. Compare with RD Calculator and SIP Calculator for alternative savings options.
PPF Interest Calculation
Interest is compounded annually on the balance at the end of each year. Balance at year N = (Previous Balance + Annual Investment) × (1 + rate). Interest = Balance × rate.
Step-by-Step Examples
₹1,50,000/year for 15 years at 7.1%
Total invested: ₹22,50,000. Interest earned: ₹18,18,209. Maturity: ₹40,68,209.
₹50,000/year for 15 years at 7.1%
Total invested: ₹7,50,000. Interest earned: ₹6,06,070. Maturity: ₹13,56,070.
Real-Life Applications
- Long-term retirement savings with guaranteed returns
- Section 80C tax deduction planning (up to ₹1.5L/year)
- Risk-free wealth building over 15+ years
- Child education or marriage planning
- Senior citizen conservative investment option
Advantages of Using This PPF Calculator
- Year-wise breakdown showing investment, interest, and balance
- Current 7.1% rate pre-filled (user adjustable)
- Shows total interest earned separately
- Tax-free calculation (EEE status highlighted)
- Indian rupee formatting
Common Mistakes to Avoid
- Investing after 5th of the month (interest calculated on lowest balance between 5th and end)
- Not maximizing annual limit of ₹1,50,000
- Expecting liquidity — PPF has 15-year lock-in (partial withdrawal from year 7)
- Confusing PPF rate (7.1%) with EPF rate (8.25%) — different schemes
- Not extending PPF after 15 years (can extend in 5-year blocks with contributions)