PPF Calculator - Public Provident Fund Calculator
Calculate your Public Provident Fund (PPF) maturity amount, total deposits, and interest earned over the 15-year (or extended) lock-in period.
AI Quick Summary
Definition & Purpose:
The Public Provident Fund (PPF) is a long-term, government-backed savings scheme with a minimum 15-year lock-in and annually compounded interest. This calculator projects the maturity value of yearly PPF deposits made at the start of each year.
When to Use:
Use this calculator to project the maturity value of a PPF account over its mandatory 15-year lock-in, or over an extended tenure in blocks of 5 years.
Key Takeaway Insights:
- PPF uses the same annuity-due compounding formula as a SIP, but compounds annually rather than monthly since deposits and interest crediting both happen on a yearly basis.
- The mandatory minimum tenure is 15 years, after which the account can be extended indefinitely in blocks of 5 years, with or without further deposits.
- Because PPF compounds annually at a government-set rate rather than a market-linked one, the projection here is far more predictable than an SIP or lumpsum equity projection.
PPF Long-Term Savings
PPF Maturity Projections
Introduction
PPF Calculator – Public Provident Fund Maturity Projection
The Public Provident Fund (PPF) is a long-term, government-backed savings scheme with a mandatory minimum lock-in of 15 years. Interest compounds annually at a rate set by the government and reviewed periodically, making it one of the more predictable long-term savings vehicles available to account holders.
This calculator projects your Maturity Amount, Total Invested, and Interest Earned based on your planned annual deposit, the current interest rate, and your chosen tenure.
The PPF Maturity Formula
PPF deposits compound the same way a SIP does, except annually instead of monthly — each year's deposit is treated as though it's made at the start of the year, giving it a full year to grow before the next deposit arrives:
M = P × ≤ft[ ((1 + i)^n - 1 / i) ] × (1 + i)
Where:
- M: Projected maturity amount.
- P: Annual deposit amount.
- i: Annual interest rate, as a decimal.
- n: Tenure in years (minimum 15, extendable in blocks of 5).
Worked Example
For an annual deposit of 150,000 over the standard 15-year tenure at 7.1% annual interest:
- i = 0.071, n = 15
- (1.071)^15 ≈ 2.797964
- M = 150,000 × ≤ft[dfrac2.797964 - 10.071] × 1.071 ≈ 4,068,209.22
- Total invested: 150,000 × 15 = 2,250,000.00
- Interest earned: 4,068,209.22 - 2,250,000.00 = 1,818,209.22
Extending Beyond 15 Years
PPF accounts can be extended indefinitely in 5-year blocks after the initial 15-year term, either with continued deposits or without. Extending the same 150,000/year deposit and 7.1% rate:
| Tenure | Maturity Amount | Total Invested | Interest Earned |
|---|---|---|---|
| 15 years (standard) | 4,068,209.22 | 2,250,000.00 | 1,818,209.22 |
| 20 years | 6,658,288.17 | 3,000,000.00 | 3,658,288.17 |
| 25 years | 10,308,014.97 | 3,750,000.00 | 6,558,014.97 |
| 30 years | 15,450,910.59 | 4,500,000.00 | 10,950,910.59 |
Each additional 5-year extension adds proportionally more to the maturity value than the last, since a larger balance is compounding for those extra years.
What This Calculator Does Not Include
To compare a PPF projection against a market-linked recurring investment, see the SIP Calculator, or model a fixed-term bank deposit with the FD Calculator.
Formula & Variables Explained
This tool utilizes standard equations formulated under standard rules.
Variables:
- Input parameter: Values supplied to resolve the output formula.
How to Calculate (Step-by-Step)
- Input the required parameters into the form.
- Click the calculate or auto-compute option.
- The outputs will refresh instantly with step-by-step variables.
Worked Examples Calculation
1Standard 15-Year PPF Tenure (150,000/year @ 7.1% p.a.)
Annual Deposit = 150,000, Interest Rate = 7.1% p.a., Tenure = 15 Years
i = 0.071; n = 15; M = 150,000 [((1.071)^15 - 1) / 0.071] 1.071 = 150,000 27.121395 = 4,068,209.22. Total Invested = 150,000 15 = 2,250,000. Interest Earned = 4,068,209.22 - 2,250,000 = 1,818,209.22.
Maturity Amount = 4,068,209.22 | Total Invested = 2,250,000.00 | Interest Earned = 1,818,209.22
2Extended 25-Year PPF Tenure (150,000/year @ 7.1% p.a.)
Annual Deposit = 150,000, Interest Rate = 7.1% p.a., Tenure = 25 Years (two 5-year extensions)
i = 0.071; n = 25; M = 150,000 [((1.071)^25 - 1) / 0.071] 1.071 = 10,308,014.97.
Maturity Amount = 10,308,014.97 | Total Invested = 3,750,000.00 | Interest Earned = 6,558,014.97
Real-World Applications
Widely used in student curriculum, professional projections, and quick estimations.
Limitations & Common Mistakes
- Entering incompatible unit formats (e.g. Mixing Metric and Imperial).
- Typographical mistakes in numeric entry fields.
Assumes a constant annual interest rate and a fixed annual deposit made at the start of each year. The actual PPF rate is set by the government and revised periodically, and real-world deposit timing may vary.
Frequently Asked Questions (FAQ)
Q:What is the lock-in period for a PPF account?
A PPF account has a mandatory minimum lock-in period of 15 years from the date it was opened. Partial withdrawals are typically permitted from the 7th year onward, subject to specific rules and limits.
Q:Can I extend my PPF account after 15 years?
Yes. Once the initial 15-year term ends, the account can be extended indefinitely in blocks of 5 years at a time, either with continued annual deposits or without making any further contributions.
Q:Is there a limit on how much I can deposit in PPF each year?
Yes — PPF schemes typically set both a minimum and a maximum annual deposit limit (for example, a minimum of 500 and a maximum of 150,000 in a given financial year under Indian PPF rules). Deposits above the maximum limit are generally not eligible for interest.
Q:Is PPF interest tax-free?
In jurisdictions where PPF is offered (such as India), the scheme is often structured to be tax-exempt on contributions, interest earned, and the maturity amount, subject to the specific tax rules in effect at the time. Tax treatment can change, so this calculator focuses on the maturity math rather than tax outcomes.
References & Citations
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