Our PPF calculator uses compound interest formula: A = P × ((1 + r)^n – 1) / r where P is annual investment, r is interest rate (currently 7.1%), and n is 15 years. It calculates the exact maturity amount based on annual contributions, considering annual compounding and the fixed 15-year lock-in period mandated by the government.

PPF has a minimum annual investment of ₹500 and maximum of ₹1.5 lakh. The current interest rate is 7.1% per annum, which is reviewed quarterly by the Government of India. This rate is generally higher than fixed deposit rates and offers complete tax exemption on principal, interest, and maturity amount.

PPF offers triple tax benefits (EEE status): 1) Investment qualifies for deduction under Section 80C up to ₹1.5 lakh, 2) Interest earned during the 15-year period is completely tax-free, 3) Maturity amount is fully tax-exempt. This makes PPF one of the most tax-efficient long-term investment options available in India.

PPF has a mandatory 15-year lock-in period. However, partial withdrawal is allowed from the 7th year onwards up to 50% of the balance at the end of 4th preceding year or end of previous year, whichever is lower. Loan facility is available from 3rd to 6th year up to 25% of the balance at the end of 2nd preceding year.

PPF is unique because it combines government backing, complete tax exemption (EEE status), and attractive interest rates. Unlike market-linked investments, PPF returns are guaranteed and risk-free. Unlike bank deposits, PPF offers higher interest rates and complete tax benefits, making it ideal for conservative long-term investors focused on retirement planning.

Yes, our PPF calculator provides 100% accurate calculations using the official compound interest formula and current government interest rates. The calculator is updated with the latest PPF rate of 7.1% p.a. However, remember that PPF interest rates are subject to quarterly review by the government, so actual returns may vary slightly over the 15-year period.

Yes, you can extend your PPF account in blocks of 5 years indefinitely after the initial 15-year period. During extension, you can choose to continue contributions or keep the account without contributions. The interest will continue to accrue at prevailing rates, and the tax-free status is maintained throughout the extended period.

If you don’t invest the minimum ₹500 in any financial year, your PPF account becomes inactive but doesn’t close. You can revive it by paying ₹500 for each year of default plus a penalty of ₹50 per year. However, the inactive years won’t count toward the 15-year maturity period, so it’s important to make regular contributions.