PPF Interest Calculator India — How PPF Interest is Calculated 2026
Public Provident Fund · 7.1% p.a. · EEE Tax-Free · Section 80C · 15-Year Lock-in
PPF interest calculation has a crucial rule most investors miss: deposit between 1st–5th of the month to earn interest for that month. Deposit on 6th or later — you lose interest for the whole month! On ₹1.5L annual deposit, investing on April 1 vs April 30 costs you ₹890 in lost interest. This calculator shows exactly how much interest you earn based on your deposit date and amount.
Tax-Free
Tax-Free
Tax-Free
💰 PPF Interest Calculator India
Govt revises quarterly. Current rate: 7.1% (FY2025-26)
Base 15 yrs. Extendable in 5-yr blocks (20, 25, 30 yrs)
Triple
Tax-Free
📅 Year-by-Year Breakdown
| Year | Opening Balance | Annual Deposit | Interest Earned | Closing Balance | Withdrawal Eligible |
|---|---|---|---|---|---|
| 1 | ₹0 | ₹50,000 | +₹3,550 | ₹53,550 | 🔒 Locked |
| 2 | ₹53,550 | ₹50,000 | +₹7,352 | ₹1,10,902 | 🔒 Locked |
| 3 | ₹1,10,902 | ₹50,000 | +₹11,424 | ₹1,72,326 | 🔒 Locked |
| 4 | ₹1,72,326 | ₹50,000 | +₹15,785 | ₹2,38,111 | 🔒 Locked |
| 5 | ₹2,38,111 | ₹50,000 | +₹20,456 | ₹3,08,567 | 🔒 Locked |
🧾 80C Tax Benefit Breakdown
📐 PPF Interest Calculation Formula
PPF Maturity Formula (Yearly Compounding):
📖 Example Calculation
Deposit: ₹1,00,000/year | Rate: 7.1% p.a. | Tenure: 15 years
💼 Real Life Use Cases
₹1.5L/yr × 30 yrs @ 7.1% → ₹1.54 Cr tax-free retirement corpus
₹50K/yr from child's birth → ₹27L ready when child turns 15
₹1L/yr × 15 yrs → ₹27L for property purchase, zero tax
30% slab: ₹1.5L deposit saves ₹46,800 tax/year + builds corpus
Frequently Asked Questions
How is PPF interest calculated monthly?
PPF interest = (minimum balance between 5th and last day of month) × (7.1% ÷ 12). This is calculated each month but CREDITED annually on March 31. Example: balance ₹5L on April 1. Deposit ₹1.5L on April 4 (before 5th). Minimum balance April = ₹6.5L. Interest for April = ₹6.5L × 7.1% ÷ 12 = ₹3,846.
Does PPF interest rate change affect existing accounts?
Yes — PPF rate is not locked for 15 years. Government reviews rate every quarter. All existing accounts get the revised rate from that quarter onwards. If rate was 8% when you opened but drops to 7.1%, your entire balance earns 7.1% from that quarter. Historical range: 7.1–12% since PPF inception.
Is PPF interest taxable under new tax regime?
PPF interest is tax-free under BOTH old and new tax regimes. Exempt u/s 10(11) — not included in total income at all. However, PPF contribution does NOT qualify for Section 80C deduction under new tax regime (new regime doesn't allow most deductions). But the interest and maturity remain tax-free.
Can I get monthly income from PPF?
No — PPF doesn't offer monthly payout. Interest is credited annually. For monthly income from PPF in extended account: you can withdraw once per year (partial withdrawal option in extended phase without contribution). To generate monthly income, better options: Senior Citizen FD monthly payout, SCSS quarterly payout, debt MF SWP.
📌 Key Takeaways
- ✅ PPF Interest Calculator India helps compute exact maturity with year-wise interest breakup
- ✅ Current PPF interest rate is 7.1% p.a. for FY2025-26, compounded annually
- ✅ PPF has EEE status — investment, interest, and maturity all completely tax-free
- ✅ Max deposit ₹1.5 lakh per year, minimum ₹500. Up to 12 instalments per year
- ✅ Partial withdrawal allowed from Year 6 onwards, once per year (max 50%)
- ✅ PPF account can be extended in 5-year blocks after 15 years
- ✅ Loan against PPF available from Year 3 to 6 at PPF rate + 1%
- ✅ Sovereign guarantee — zero default risk, backed by Government of India