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Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 8 April 2026·Methodology

Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.

Calculator

PPF Calculator

Will 15 years of PPF actually build a meaningful tax-free corpus? See the maturity amount, what drives it, and whether maxing the ₹1.5L cap is worth it for you.

PPF details

PPF caps contributions at ₹1.5L per year and has a 15-year minimum tenure.

₹1.5L

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Verdicthigh confidence

PPF maturity amount

₹40.7L

₹40.68L tax-free corpus

Over 15 years at 7.1%, your ₹22.5L contribution becomes ₹40.68L — entirely tax-free.

PPF is a solid fixed-income backbone, but pair it with equity for long-horizon growth.

Total contribution

₹22.5L

Interest earned

₹18.2L

Maturity amount

₹40.7L

Tax saved via 80C

₹45K

Assumes 30% marginal rate in the old regime.

PPF balance over time

Contributions + interest compounded annually.

₹50L₹25L₹0
Yr 1Yr 4Yr 7Yr 9Yr 12Yr 15

Benchmarks

  • Max out at ₹1.5L/year

    You

    ₹40.7L

    Benchmark

    ₹40.7L

    Fully uses the 80C window; PPF interest is tax-free.

  • Extend by 5 years

    -38.9%

    You

    ₹40.7L

    Benchmark

    ₹66.6L

    PPF can be extended in 5-year blocks after the 15-year lock-in.

  • If PPF rate rose by 1%

    -8.3%

    You

    ₹40.7L

    Benchmark

    ₹44.4L

    Government resets PPF rate quarterly — shows rate sensitivity.

What moves the result most

Holding everything else fixed, here is how the headline shifts when each input swings by a typical range.

Tenure₹0 ₹25.9L
−5 years+5 years
Annual contribution-₹8.1L ₹0
-20%+20%
PPF rate-₹3.6L ₹3.9L
-15% rate+15% rate

You're using the full ₹1.5L 80C limit via PPF

PPF is one of the best uses of the 80C window — tax-free interest, tax-free maturity (EEE), backed by the Government of India.

Next best actions

The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.

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At a glance

What it does
Projects the maturity of a Public Provident Fund (PPF) account at the current government rate, with the ₹1.5L annual cap enforced.
Current rate
7.1% per year (Q4 FY 2025-26, subject to quarterly revision by the Ministry of Finance).
Typical output
₹1.5L/year for 15 years at 7.1% becomes ~₹40.68L, all tax-free under Section 10(11).
Best used for
Building the debt portion of a long-term portfolio with guaranteed, tax-free, Government-backed returns.

How It Works

This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.

  • Each year: balance += contribution, then balance += balance × rate.
  • Contributions are capped at ₹1.5L/year combined across all PPF accounts.
  • Returns are tax-free under Section 10(11) — EEE status (contribution exempt, interest exempt, maturity exempt).

Assumptions

The recommendation stays blunt, but the assumptions remain visible.

  • Interest is compounded annually on the end-of-year balance (a simplification of the actual monthly minimum-balance rule).
  • The government revises the PPF rate quarterly; this tool uses a fixed rate for the full tenure.
  • 80C tax savings assume a 30% marginal rate and full claim in the old regime.

FAQ

The follow-up questions people usually ask after the main recommendation is already clear.

Is PPF really the best tax-free investment?

For debt-allocation it's close to best — Government backing, tax-free interest, and full Section 80C benefit. The downside is a 15-year lock-in and the ₹1.5L annual cap.

Can I extend PPF beyond 15 years?

Yes — PPF can be extended in 5-year blocks indefinitely. You can choose to continue contributing or keep the balance and earn interest without new deposits.

What happens if I contribute more than ₹1.5L?

Banks reject contributions above the cap, and this calculator automatically caps the input. There's no penalty — the extra just doesn't go in.

Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.

Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.

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