Finance
Home Loan EMI Calculator
Calculate your monthly home loan EMI, total interest payable, and total repayment amount using the reducing balance method. Supports USD, EUR, GBP, INR, and JPY with real-time results.
PPF Calculator
₹500₹1.5L
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The Public Provident Fund is a long-term government-backed savings scheme in India that combines tax deductions, tax-free interest, and guaranteed sovereign returns. Contributions are locked in for 15 years but the account can be extended in blocks of 5 years after maturity. The interest rate is set by the Government of India each quarter. The current rate is 7.1% per annum, compounded annually.
How PPF Interest Is Calculated
PPF interest is calculated on the minimum balance between the 5th and last day of each calendar month. This means the timing of your deposit within a month affects the interest you earn. Deposits made on or before the 5th of a month earn interest for that full month. Deposits made after the 5th do not earn interest for that month.
The annual interest calculated using the running monthly balance is credited to your PPF account at the end of the financial year (31 March). The calculator above uses the standard annuity formula with beginning-of-year deposits, which is the most common approximation for planning purposes.
PPF Contribution Limits
| Parameter | Value |
|---|---|
| Minimum annual deposit | ₹500 |
| Maximum annual deposit | ₹1,50,000 |
| Number of deposits per year | Maximum 12 (once per month) |
| Account opening minimum | ₹500 |
| Penalty for no deposit in a year | ₹50 per year (account becomes inactive) |
PPF Tax Benefits
PPF operates under the EEE (Exempt-Exempt-Exempt) tax structure. Contributions up to ₹1.5 lakh qualify for deduction under Section 80C of the Income Tax Act. Interest earned every year is completely tax-free. The maturity amount at the end of 15 years or any extension period is also fully exempt from income tax and wealth tax.
This triple exemption makes PPF one of the most tax-efficient savings instruments available in India, particularly for individuals in the 30% tax slab where each rupee of PPF contribution saves 30 paise in tax.
Frequently Asked Questions
The current PPF interest rate is 7.1% per annum, compounded annually. The Government of India sets this rate each quarter. It has remained at 7.1% since April 2020. The rate is notified in the official gazette and applies to all existing and new PPF accounts uniformly.
No. The maximum deposit allowed in a PPF account per financial year is u20b91,50,000. Deposits exceeding this limit will not earn any interest and will not qualify for the Section 80C tax deduction. The excess amount will be returned to the depositor without interest at the time of withdrawal.
After the initial 15-year lock-in period, you can close the account and withdraw the full maturity amount. Alternatively, you can extend the account in blocks of 5 years indefinitely. During an extension, you can continue making deposits (active extension) or stop depositing and let the existing balance earn interest (passive extension without deposits).
No. Non-resident Indians cannot open a new PPF account. An Indian resident who becomes an NRI after opening a PPF account may continue to operate the existing account until its maturity (15-year term) but cannot extend it thereafter. Deposits must be made from an NRE or NRO account.
No. PPF operates under the EEE (Exempt-Exempt-Exempt) structure. Annual deposits qualify for Section 80C deduction (up to u20b91.5 lakh). Interest credited each year is tax-free under Section 10(11). The full maturity amount received at the end of the term is also completely exempt from income tax and not subject to wealth tax.
Yes. A loan facility is available from the 3rd financial year to the 6th financial year of account opening. The maximum loan amount is 25% of the balance at the end of the 2nd year preceding the year in which the loan is applied for. The loan must be repaid within 36 months. The interest rate on PPF loans is currently 1% above the PPF interest rate.