Work out what your PPF account will be worth
₹40,68,209
Maturity amount
₹22,50,000
You deposit
₹18,18,209
Interest earned
Entirely tax-free under EEE
| Year | Opening | Deposit | Interest | Closing |
|---|---|---|---|---|
| 1 | ₹0 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| 2 | ₹1,60,650 | ₹1,50,000 | ₹22,056 | ₹3,32,706 |
| 3 | ₹3,32,706 | ₹1,50,000 | ₹34,272 | ₹5,16,978 |
| 4 | ₹5,16,978 | ₹1,50,000 | ₹47,355 | ₹7,14,334 |
| 5 | ₹7,14,334 | ₹1,50,000 | ₹61,368 | ₹9,25,701 |
| 6 | ₹9,25,701 | ₹1,50,000 | ₹76,375 | ₹11,52,076 |
| 7 | ₹11,52,076 | ₹1,50,000 | ₹92,447 | ₹13,94,524 |
| 8 | ₹13,94,524 | ₹1,50,000 | ₹1,09,661 | ₹16,54,185 |
| 9 | ₹16,54,185 | ₹1,50,000 | ₹1,28,097 | ₹19,32,282 |
| 10 | ₹19,32,282 | ₹1,50,000 | ₹1,47,842 | ₹22,30,124 |
| 11 | ₹22,30,124 | ₹1,50,000 | ₹1,68,989 | ₹25,49,113 |
| 12 | ₹25,49,113 | ₹1,50,000 | ₹1,91,637 | ₹28,90,750 |
| 13 | ₹28,90,750 | ₹1,50,000 | ₹2,15,893 | ₹32,56,643 |
| 14 | ₹32,56,643 | ₹1,50,000 | ₹2,41,872 | ₹36,48,515 |
| 15 | ₹36,48,515 | ₹1,50,000 | ₹2,69,695 | ₹40,68,209 |
A PPF account runs for fifteen years, which makes it almost impossible to judge by instinct — the interest in the final year alone can exceed everything you deposited in the first three. This works out the maturity amount from your yearly deposit and the current rate, and shows the balance building year by year so you can see where the growth actually comes from. It is also useful for deciding whether to extend beyond fifteen years, because the later blocks compound on a balance that is already large.
Why the last five years matter most
Compounding is not evenly distributed across a PPF term, and the year-by-year table makes that obvious in a way a single maturity figure never does. With a ₹1.5 lakh yearly deposit, the interest credited in year fifteen is roughly eight times the interest credited in year two — because it accrues on a balance built from fourteen previous deposits plus all the interest on them. This is the practical argument against closing the account at the first opportunity: the years that do the most work are the ones at the end.
The 5th of April rule
Almost nobody is told this when they open the account. Interest each month is computed on the lowest balance between the 5th and the last day, so money that arrives on the 6th is invisible to that month's calculation. Over fifteen years, depositing in early April rather than late March of the following year is worth a meaningful amount — several lakh on a full ₹1.5 lakh contribution. If you can only deposit monthly, the same rule applies: pay before the 5th.
Reading the rate honestly
PPF rates are set quarterly and have fallen over the past decade, so projecting fifteen years at today's rate is optimistic by construction. A more useful approach is to run the calculation twice — once at the current rate and once a percentage point lower — and treat the gap as the range you are actually looking at. What does not change is the tax treatment, and at a 30% marginal rate a tax-free 7.1% is equivalent to roughly 10.1% from a taxable deposit.
Frequently asked questions
- When should I deposit to earn the most interest?
- Before the 5th of April. PPF 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. Depositing the full year's amount in early April earns interest for all twelve months.
- Can I deposit more than ₹1.5 lakh a year?
- You can pay it in, but it earns no interest and is not eligible for deduction. The excess simply sits there, so there is no reason to do it.
- Is the interest taxable?
- No. PPF is EEE — the deposit is deductible under 80C, the interest is tax-free, and so is the maturity amount. That is what makes its effective return higher than a fixed deposit at the same headline rate.
- What happens after 15 years?
- You can withdraw everything, or extend in blocks of five years, with or without further deposits. Extending without deposits still earns interest on the balance, which is often the better option given the rate is tax-free.
- Can I withdraw early?
- Partial withdrawal is allowed from the seventh year, capped at half the balance from four years earlier. A full closure is permitted after five years only for specified reasons, and costs one percentage point of interest.
- Does the rate stay fixed for 15 years?
- No. The government revises it quarterly, so the figure here is a projection at the rate you enter. Past rates have ranged from around 7% to 8.8%, which is worth keeping in mind when you read the final number.
- Is my data saved?
- No. The calculation runs in this page as you type. Nothing about your deposits or balances is transmitted or stored.