India · Public Provident Fund · 2026

PPF calculator India 2026 Maturity, 80C & real return

Maturity, 80C & real value — optional inflation toggle.

Your ₹40.7L PPF maturity loses purchasing power. After inflation, the real value is much lower.

Deposit details

₹500–₹1.5L/yr · 80C eligible
Govt rate ~7.1% (quarterly)
Minimum lock-in 15 years
5-year blocks after maturity

The truth about your PPF corpus

✅ Strong base
You invest —
Maturity —
Real value —
Real gain —

Tax-free (EEE) doesn't mean inflation-free — turn on inflation below.

7.1% Nominal yield
7.1% You keep
Inflation
— Real return

7.1% → 7.1% → — p.a.

Real return ≈ tax-free yield − inflation (Fisher)

PPF maturity (EEE) — What the passbook shows
In today's money —

Turn on inflation to see today's purchasing power.

EEE · tax-free 6% inflation (editable)

What this means

Adjust for reality Inflation Inflation off
CPI 0–15%

How your PPF grows

Solid line = PPF balance · grey dashed = principal deposited

Invested — Maturity — Interest —

    EEE — tax-free; toggle inflation above for real line

    Invested vs interest

    Tax-free (EEE) split at maturity

    Compare with SIP → Growth above inflation

    PPF brochures show nominal maturity. What matters for goal planning is whether that corpus still buys your target after years of inflation — toggle inflation above, then compare against FD or equity SIP for the growth portion of your portfolio.

    How PPF compares to FD, RD & SIP

    PPF sits in the safe, tax-free corner of Indian savings. Use the same annual outflow in each calculator with realistic assumptions to see where it fits in your 80C and long-term plan.

    Dimension PPF FD / RD Equity SIP
    Tax treatment EEE — no tax on deposit, interest, maturity Interest fully taxable at slab LTCG on equity gains (rules vary)
    Safety Sovereign guarantee Bank DICGC / Post Office Market-linked — no guarantee
    Typical return ~7.1% p.a. (govt-set, quarterly) ~5.5–7.5% p.a. Historical ~12% CAGR — not promised
    Liquidity 15-year lock-in; partial withdrawal from yr 7 RD/FD premature closure with penalty Redeem anytime (exit load may apply)
    After inflation Often ~1% real p.a. — preserves wealth Often near-zero or negative real yield after tax Historically stronger over 10+ years
    Best for 80C + guaranteed tax-free corpus Short fixed goals (1–3 years) Retirement, education, 7+ year goals

    Compare side by side: FD calculator · RD calculator · SIP calculator

    What is PPF (Public Provident Fund)?

    Public Provident Fund is a government-backed, 15-year savings scheme with a unique EEE tax status: contribution is deductible under Section 80C, interest earned is tax-free, and the maturity amount is exempt. This makes PPF one of the most tax-efficient instruments in India.

    PPF suits conservative, long-term investors who want guaranteed returns without credit risk. Real purchasing-power growth after CPI inflation is modest — often 1–2% p.a. — enough for wealth preservation, not aggressive creation. Read: PPF vs ELSS for 80C

    PPF interest rate in India 2026

    The PPF rate is set quarterly by the Ministry of Finance. It has been 7.1% p.a. for several consecutive quarters. Interest is calculated on the minimum balance between the 5th and last day of each month, then credited annually on March 31.

    • Deposit window: ₹500 minimum, ₹1.5 lakh maximum per financial year.
    • Best practice: Deposit before April 5 each year to earn interest for the full first month.
    • Extension: After 15 years, extend in 5-year blocks — with or without fresh contributions.

    PPF maturity examples (₹1.5L/year @ 7.1%)

    Tenure Invested Maturity (tax-free) Real value @ 6% CPI
    15 years₹22.5L~₹40.7L~₹17.0L
    20 years₹30.0L~₹65.9L~₹20.5L
    25 years₹37.5L~₹1.01Cr~₹23.5L

    Real values discount nominal maturity by cumulative inflation. Enter your own deposit, rate, and tenure in the calculator above.

    How PPF works

    1. Open an account — at any nationalised bank, SBI, or post office. One account per person.
    2. Deposit annually — between ₹500 and ₹1.5L per financial year. Before April 5 maximises first-year interest.
    3. Interest compounds annually — calculated monthly on minimum balance, credited on March 31.
    4. 15-year lock-in — partial withdrawals from year 7, loans from year 3 under specific rules.
    5. Extend in 5-year blocks — extension without deposits keeps the full corpus compounding tax-free.

    How we calculate PPF maturity

    Each year's deposit is added to the running balance, then the full balance compounds at the stated annual rate:

    Balanceyear n = (Balanceyear n−1 + Annual deposit) × (1 + rate)

    Real value = Maturity ÷ (1 + inflation)years. PPF has no income tax on interest — unlike FD or RD — so inflation is the primary adjustment for goal planning.

    All math runs in your browser — inputs are not sent to our servers.

    FAQ

    PPF calculator — frequently asked questions

    Does PPF actually beat inflation?

    At 7.1% nominal and historical CPI of 5–6%, PPF delivers a real return of roughly 1–2% p.a. That preserves purchasing power but doesn't significantly grow it. Turn on Apply inflation in the calculator to see exactly what your maturity is worth in today's rupees.

    Is PPF risk-free?

    Yes. PPF is backed by the Government of India with sovereign guarantee — among the safest savings instruments available in India.

    PPF vs ELSS — which gives better returns?

    ELSS has historically delivered 12–15% CAGR, well above PPF's 7.1%. But ELSS carries market risk and gains above ₹1.25L (LTCG) are taxed at 12.5%. PPF is for the risk-averse, guaranteed-return portion of your 80C allocation. Model an ELSS SIP with tax toggles for comparison.

    What is the best PPF deposit strategy?

    Deposit ₹1.5L before April 5 each year. PPF calculates monthly interest on the minimum balance between the 5th and last day of the month — an early deposit earns one extra month of compounding per year.

    Should I extend PPF after 15 years?

    Almost always yes. Extending without fresh deposits means your entire corpus keeps compounding tax-free. Every 5-year extension adds roughly 40% to your balance at 7.1%. Use the extension slider above to model it.

    Is PPF better than FD?

    PPF beats FD on tax efficiency (EEE vs fully taxable interest) but loses on liquidity. For a 30% bracket investor, 7.1% PPF is equivalent to roughly a 10% pre-tax FD rate. Compare in the FD calculator.

    What is the PPF deposit limit?

    Minimum ₹500 and maximum ₹1.5 lakh per financial year per account. A parent can open a minor's account, but combined deposits under the same PAN cannot exceed ₹1.5L/year.

    How much will ₹1.5 lakh per year give after 15 years?

    At 7.1% p.a., ₹1.5L/year for 15 years gives a tax-free maturity of approximately ₹40.7 lakh on ₹22.5L invested. After 6% inflation, real value is roughly ₹17 lakh in today's rupees.