The Public Provident Fund (PPF) is one of the most trusted long-term savings schemes in India. Backed by the Government of India, it offers guaranteed returns, tax benefits under Section 80C, and a completely tax-free maturity amount. With a lock-in period of 15 years and annual compounding, PPF is widely used for retirement planning and secure wealth creation.
To make the most of your investment, it is important to understand how to calculate Public Provident Fund or how PPF maturity is calculated. The maturity depends not only on the investment amount and interest rate, but also on when you deposit – yearly lump sum, monthly before 5th, or monthly after 5th.
| Factor | Details |
|---|---|
| Tenure | 15 years (extendable in 5-year blocks) |
| Interest Rate | Current Rate – 7.1% per annum [ Declared by the Government every quarter ] |
| Minimum Deposit | ₹500 per year |
| Maximum Deposit | ₹1.5 lakh per year |
| Compounding | Annually (interest credited once a year) |
| Tax Benefit | Section 80C deduction + tax-free maturity |
For lump sum yearly deposits, the maturity follows the compound interest formula:
A = P × (1 + r/n)(n × t)
For monthly deposits, calculations differ due to the 5th date rule.
If you invest ₹1.5 lakh once every April:
| Year | Deposit (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|
| 1 | 1,50,000 | 10,650 | 1,60,650 |
| 2 | 1,50,000 | 24,131 | 3,34,781 |
| 3 | 1,50,000 | 28,770 | 5,12,551 |
| 5 | 1,50,000 | 67,421 | 8,79,972 |
| 10 | 1,50,000 | 2,01,947 | 19,01,947 |
| 15 | 1,50,000 | 5,00,000+ | ~40,00,000 |
If you invest ₹12,500 per month (₹1.5 lakh yearly) before the 5th of every month:
| Year | Total Deposits (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|
| 1 | 1,50,000 | 10,800 | 1,60,800 |
| 2 | 3,00,000 | 24,300 | 3,35,100 |
| 3 | 4,50,000 | 29,100 | 5,14,200 |
| 5 | 7,50,000 | 68,800 | 8,91,800 |
| 10 | 15,00,000 | 2,05,000 | 19,15,000 |
| 15 | 22,50,000 | 5,10,000+ | ~40,60,000 |
If you deposit after the 5th, that month’s deposit does not earn interest:
| Year | Total Deposits (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|
| 1 | 1,50,000 | 10,400 | 1,60,400 |
| 2 | 3,00,000 | 23,500 | 3,23,900 |
| 3 | 4,50,000 | 28,000 | 5,01,900 |
| 5 | 7,50,000 | 66,000 | 8,79,000 |
| 10 | 15,00,000 | 1,95,000 | 18,95,000 |
| 15 | 22,50,000 | 5,00,000 | ~39,80,000 |
| Case | Deposit Pattern | Total Investment (₹) | Maturity Value (₹) | Total Interest Earned (₹) |
|---|---|---|---|---|
| Case 1 | ₹1.5 lakh lump sum in April | 22,50,000 | ~40,00,000 | ~17,50,000 |
| Case 2 | ₹12,500 monthly (before 5th) | 22,50,000 | ~40,60,000 | ~18,10,000 |
| Case 3 | ₹12,500 monthly (after 5th) | 22,50,000 | ~39,80,000 | ~17,30,000 |
PPF interest is calculated on the lowest balance between the 5th and the last day of the month. Deposits made on or before the 5th earn interest for that month. Deposits after the 5th start earning interest only from the next month. This is why investing before the 5th helps maximize returns.
Manual PPF calculation is complex because interest is calculated monthly, credited yearly, and rates change every quarter.
The easiest option is to use our PPF Calculator Tool. It instantly shows maturity value, total deposits, and total interest earned.
Q1. Why is 5th the cutoff date in PPF?
Interest is calculated on the lowest balance between the 5th and last day of the month. Deposits made before the 5th earn interest for that month, while deposits after the 5th start earning interest from the next month.
Q2. Which is better: yearly or monthly investment?
Yearly lump sum in April gives maximum maturity. Monthly deposits before the 5th earn almost the same, while deposits after the 5th result in slightly lower returns.
Q3. How much will I get if I invest ₹5000 per month?
At an interest rate of 7.1%, investing ₹5000 per month will give you around ₹16 lakh after 15 years, provided deposits are made before the 5th of each month.
Q4. Can I deposit more than ₹1.5 lakh per year?
Yes, you can deposit more than ₹1.5 lakh, but the extra amount will not earn interest or qualify for tax benefits under Section 80C.
Q5. How is interest credited in PPF?
Interest in PPF is calculated monthly but credited to the account once a year at the end of March.
Q6. Can NRIs open a PPF account?
No, only resident Indians can open a PPF account. NRIs are not eligible.
Q7. Is PPF better than FD?
PPF is better for long-term savings as it offers tax-free maturity and generally higher post-tax returns than fixed deposits (FDs).
So, PPF is a safe and tax-efficient way to save for the long term. Your maturity amount depends on how and when you invest:
The Public Provident Fund (PPF) is one of the most trusted long-term savings schemes in India. Backed by the Government of India, it offers guaranteed returns, tax benefits under Section 80C, and a completely tax-free maturity amount. With a lock-in period of 15 years and annual compounding, PPF is widely used for retirement planning and secure wealth creation.
To make the most of your investment, it is important to understand how to calculate Public Provident Fund or how PPF maturity is calculated. The maturity depends not only on the investment amount and interest rate, but also on when you deposit – yearly lump sum, monthly before 5th, or monthly after 5th.
| Factor | Details |
|---|---|
| Tenure | 15 years (extendable in 5-year blocks) |
| Interest Rate | Current Rate – 7.1% per annum [ Declared by the Government every quarter ] |
| Minimum Deposit | ₹500 per year |
| Maximum Deposit | ₹1.5 lakh per year |
| Compounding | Annually (interest credited once a year) |
| Tax Benefit | Section 80C deduction + tax-free maturity |
For lump sum yearly deposits, the maturity follows the compound interest formula:
A = P × (1 + r/n)(n × t)
For monthly deposits, calculations differ due to the 5th date rule.
If you invest ₹1.5 lakh once every April:
| Year | Deposit (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|
| 1 | 1,50,000 | 10,650 | 1,60,650 |
| 2 | 1,50,000 | 24,131 | 3,34,781 |
| 3 | 1,50,000 | 28,770 | 5,12,551 |
| 5 | 1,50,000 | 67,421 | 8,79,972 |
| 10 | 1,50,000 | 2,01,947 | 19,01,947 |
| 15 | 1,50,000 | 5,00,000+ | ~40,00,000 |
If you invest ₹12,500 per month (₹1.5 lakh yearly) before the 5th of every month:
| Year | Total Deposits (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|
| 1 | 1,50,000 | 10,800 | 1,60,800 |
| 2 | 3,00,000 | 24,300 | 3,35,100 |
| 3 | 4,50,000 | 29,100 | 5,14,200 |
| 5 | 7,50,000 | 68,800 | 8,91,800 |
| 10 | 15,00,000 | 2,05,000 | 19,15,000 |
| 15 | 22,50,000 | 5,10,000+ | ~40,60,000 |
If you deposit after the 5th, that month’s deposit does not earn interest:
| Year | Total Deposits (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|
| 1 | 1,50,000 | 10,400 | 1,60,400 |
| 2 | 3,00,000 | 23,500 | 3,23,900 |
| 3 | 4,50,000 | 28,000 | 5,01,900 |
| 5 | 7,50,000 | 66,000 | 8,79,000 |
| 10 | 15,00,000 | 1,95,000 | 18,95,000 |
| 15 | 22,50,000 | 5,00,000 | ~39,80,000 |
| Case | Deposit Pattern | Total Investment (₹) | Maturity Value (₹) | Total Interest Earned (₹) |
|---|---|---|---|---|
| Case 1 | ₹1.5 lakh lump sum in April | 22,50,000 | ~40,00,000 | ~17,50,000 |
| Case 2 | ₹12,500 monthly (before 5th) | 22,50,000 | ~40,60,000 | ~18,10,000 |
| Case 3 | ₹12,500 monthly (after 5th) | 22,50,000 | ~39,80,000 | ~17,30,000 |
PPF interest is calculated on the lowest balance between the 5th and the last day of the month. Deposits made on or before the 5th earn interest for that month. Deposits after the 5th start earning interest only from the next month. This is why investing before the 5th helps maximize returns.
Manual PPF calculation is complex because interest is calculated monthly, credited yearly, and rates change every quarter.
The easiest option is to use our PPF Calculator Tool. It instantly shows maturity value, total deposits, and total interest earned.
Q1. Why is 5th the cutoff date in PPF?
Interest is calculated on the lowest balance between the 5th and last day of the month. Deposits made before the 5th earn interest for that month, while deposits after the 5th start earning interest from the next month.
Q2. Which is better: yearly or monthly investment?
Yearly lump sum in April gives maximum maturity. Monthly deposits before the 5th earn almost the same, while deposits after the 5th result in slightly lower returns.
Q3. How much will I get if I invest ₹5000 per month?
At an interest rate of 7.1%, investing ₹5000 per month will give you around ₹16 lakh after 15 years, provided deposits are made before the 5th of each month.
Q4. Can I deposit more than ₹1.5 lakh per year?
Yes, you can deposit more than ₹1.5 lakh, but the extra amount will not earn interest or qualify for tax benefits under Section 80C.
Q5. How is interest credited in PPF?
Interest in PPF is calculated monthly but credited to the account once a year at the end of March.
Q6. Can NRIs open a PPF account?
No, only resident Indians can open a PPF account. NRIs are not eligible.
Q7. Is PPF better than FD?
PPF is better for long-term savings as it offers tax-free maturity and generally higher post-tax returns than fixed deposits (FDs).
So, PPF is a safe and tax-efficient way to save for the long term. Your maturity amount depends on how and when you invest: