PPF vs ELSS Calculator India — Best Tax Saving Option 2025 2026
Public Provident Fund · 7.1% p.a. · EEE Tax-Free · Section 80C · 15-Year Lock-in
PPF gives guaranteed 7.1% returns, ELSS gives market-linked 12–15% CAGR historically. At 30% tax slab, PPF effective return = 10.2% (pre-tax equivalent of tax-free 7.1%). ELSS effective return (after 12.5% LTCG) = 10.5–13% depending on returns. For long-term (15+ years), ELSS usually wins. But PPF is the only risk-free option with EEE status. See the exact comparison for your numbers.
Tax-Free
Tax-Free
Tax-Free
💰 PPF vs ELSS 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
Why is PPF called EEE investment?
EEE = Exempt-Exempt-Exempt: (1) Investment: exempt under Section 80C. (2) Interest: exempt from income tax every year. (3) Maturity: completely tax-free. Very few investments in India are EEE — others are: EPFO, Sukanya Samriddhi. This makes PPF effective yield much higher than nominal 7.1% for high tax bracket investors.
Does ELSS have better lock-in than PPF?
Yes — ELSS has only 3-year lock-in vs PPF 15 years. But each ELSS SIP installment locks independently (SIP in Jan 2025 unlocks Jan 2028). PPF allows partial withdrawal from year 7 and loan from year 3–6. Overall liquidity: ELSS > PPF. For someone who may need money in 5–10 years, ELSS is more flexible.
Can I do both PPF and ELSS together under 80C?
Yes and many experts recommend it. Total 80C limit ₹1.5L — you can split: ₹75K PPF (safe, EEE) + ₹75K ELSS (growth). This gives: guaranteed base from PPF + growth potential from ELSS. Diversification reduces risk while maximizing wealth creation. Both count toward same ₹1.5L 80C limit.
What if stock market crashes — is ELSS safe?
ELSS (equity) is volatile short-term. Nifty 50 has had: 2008 crash (-54%), 2020 COVID (-38%), 2022 war correction (-17%). But every 10-15 year SIP period on Nifty has given positive returns. Key: never invest money needed within 5 years in ELSS. PPF is the right choice for money needed within 5 years.
📌 Key Takeaways
- ✅ PPF vs ELSS 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