Finance & InvestmentEntry № 01.13Documented Formula

PPF (Public Provident Fund) Calculator (India)

Projects 15-year tax-free wealth accumulation, yearly interest compounding, and 5-year extension blocks under the Government of India PPF scheme.

Popular Searches:How much corpus after 15 years in PPF depositing 1.5 lakh yearly?Current PPF interest rate and yearly compounding formulaPPF account extension in blocks of 5 yearsTax exemption under Section 80C for PPF
Public Provident Fund (PPF) — EEE Tax-Free Engine
Govt Sovereign Guarantee • Section 80C
₹1,50,000 / year
7.1%
%
Tax-Free Corpus
Maturity Corpus (at 15 yrs)
₹40,68,209
100% Tax-Free under Section 80C & 10(11)
Total Capital Deposited₹22,50,000
Total Sovereign Interest+₹18,18,209
F = Σ [P · (1 + r)ⁿ⁻ᵏ] (Annual compounding)
Mathematical Proof & FormulaStandard Mathematical Notation

How This Calculation Formula is Formulated

Public Provident Fund (PPF) is an Indian government-backed sovereign savings scheme. Interest is calculated monthly on the lowest balance between the 5th and the last day of each month, and credited to the account annually at the end of each financial year (March 31st).

Standard Algebraic Representation
F = \sum_{k=1}^{n} \left[ P \cdot (1 + r)^{n - k + 1} \right]
Documented algebraic formula with transparent derivation and reference notes.

Variable Definitions & Measurement Units

P
Annual Contribution
Deposit per financial year (min ₹500, max ₹1,50,000)
r
Annual Interest Rate
Government notified rate (currently 7.1% p.a.)
n
Tenure
Statutory 15-year tenure, extendable in 5-year blocks
Step-by-Step Calculation Example

Full ₹1,50,000 Yearly Contribution for 15 Years at 7.1%

Annual Deposit:₹1,50,000 before April 5thRate:7.1% p.a.Tenure:15 Financial Years
1
Total Principal Invested
₹1,50,000 × 15 = ₹22,50,000
Maximum eligible Section 80C deduction claimed each year.
2
Cumulative Compound Interest
Yearly compounding at 7.1% = ₹18,18,209
100% tax-free sovereign interest.
3
Maturity Corpus
₹22,50,000 + ₹18,18,209 = ₹40,68,209
Full maturity proceeds after 15 years.
Conclusion: A disciplined 15-year PPF investment of ₹1.5L/year matures to ₹40,68,209 completely tax-free.
In-Depth Editorial Analysis

Exempt-Exempt-Exempt (EEE) Tax Status

PPF enjoys the coveted EEE tax status in India: deposits qualify for Section 80C tax deduction (Exempt), interest earned is completely tax-free under Section 10(11) (Exempt), and the full maturity proceeds are tax-free on withdrawal (Exempt).

To maximize interest, always deposit funds before the 5th of every month (ideally before April 5th for lump-sum deposits) so the deposit earns interest for the entire month.

Frequently Asked Questions

Frequently Asked Questions About PPF (Public Provident Fund) Calculator (India)

What is the maximum amount I can deposit in PPF per year?

The maximum statutory limit is ₹1,50,000 per financial year across all PPF accounts held by an individual (including accounts opened on behalf of minor children).

Can I extend my PPF account after 15 years?

Yes. PPF accounts can be extended indefinitely in blocks of 5 years, either with fresh contributions (earning both tax deduction and interest) or without contributions (earning interest on existing balance).

When can I take a loan or partial withdrawal from PPF?

Loans are available from the 3rd to 6th financial year (up to 25% of balance). Partial withdrawals are permitted from the 7th financial year onwards (up to 50% of 4th preceding year's balance).

Can a PPF account be attached by a court decree for debt recovery?

No. Under Section 15 of the PPF Act, PPF balances cannot be attached by any court decree or order in respect of any debt or liability incurred by the account holder.

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Deterministic Precision & 100% Client-Side Privacy

All calculations execute in your local browser using IEEE 754 double-precision floating-point arithmetic. Your figures and financial metrics remain private and are never uploaded or saved to any cloud servers.