PPF Calculator — Public Provident Fund Maturity (2026)
Calculate your PPF maturity value based on the current 7.1% interest rate, with extension options beyond the standard 15-year term.
PPF in 2026 — What's Changed and What Hasn't
The Public Provident Fund remains one of the most straightforward long-term savings options available to Indian residents — government-backed, fixed return, and fully tax-free under the current EEE structure. For FY 2025-26, the interest rate has been held at 7.1% per annum, compounded annually. The rate is reviewed quarterly by the government and linked loosely to government bond yields, though the final figure is a government decision rather than a pure market formula.
Key PPF Rules at a Glance
| Feature | Detail (2026) |
|---|---|
| Interest Rate | 7.1% p.a. (reviewed quarterly) |
| Compounding | Annual |
| Lock-in Period | 15 years |
| Extension Option | Blocks of 5 years, indefinitely |
| Minimum Annual Deposit | ₹500 |
| Maximum Annual Deposit | ₹1.5 lakh (Section 80C limit)* |
| Tax Treatment | EEE — Exempt-Exempt-Exempt |
| Partial Withdrawal | Permitted after a few years (check current rules) |
| Loan Against PPF | Available in certain years of the tenure |
*Some 2026 reports reference a proposed increase to the annual limit. Always confirm the current limit on the official India Post or bank PPF portal before planning contributions, as Section 80C limits affect both your deposit cap and your tax deduction.
Why the Maturity Value Looks "Bigger Than Expected"
A common reaction when people first calculate PPF maturity over 15 years is surprise at how much the interest portion grows relative to the contributions. This is annual compounding doing its work — each year's interest is added to the balance, and next year's 7.1% is calculated on that larger number. Over 15 years of consistent ₹1.5 lakh annual contributions, the interest earned typically ends up being a substantial portion of the total maturity value — often comparable to or exceeding the amount actually deposited.
What Happens After 15 Years — Extension Options
At the end of the initial 15-year term, you have a few choices. You can withdraw the full maturity amount (tax-free). You can extend the account in blocks of 5 years, either continuing to contribute or without further contributions while the existing balance keeps earning interest. This extension can be repeated indefinitely — many long-term PPF holders extend multiple times, which is why the calculator above offers 20, 25, and 30-year options to model these extensions.
PPF vs FD vs Other Options
| Feature | PPF | Fixed Deposit |
|---|---|---|
| Typical Rate (2026) | 7.1% | Varies by bank/tenure, often similar or slightly different |
| Tax on Interest | Tax-free | Taxable as per income slab |
| Lock-in | 15 years (extendable) | Flexible, typically 7 days–10 years |
| Section 80C Benefit | Yes | Only specific tax-saving FDs (5-year lock-in) |
| Liquidity | Limited — partial withdrawal rules apply | Higher (with penalty for early exit) |
The tax-free nature of PPF interest is often the deciding factor. A 7.1% tax-free return can be equivalent to a meaningfully higher pre-tax FD rate, depending on your income tax slab — for someone in a higher tax bracket, the gap can be substantial once you account for tax on FD interest.
Frequently Asked Questions
What is the current PPF interest rate in 2026?
The PPF interest rate has been held at 7.1% per annum for FY 2025-26, compounded annually. The rate is reviewed quarterly by the government and linked to government bond yields, though it has remained stable at this level for an extended period. Always check the official rate for the current quarter before making major contribution decisions, as it can change.
Can I withdraw money from PPF before 15 years?
Partial withdrawals are permitted after a certain number of years of the account being active — the exact rules around timing and amount have been adjusted over time, so check the current official rules. Premature closure of the entire account before 15 years is allowed only in specific circumstances (such as medical emergencies or higher education), typically with a small interest penalty.
What happens if I miss a yearly PPF contribution?
PPF requires a minimum annual deposit (currently ₹500) to keep the account active. If you miss this minimum in any year, the account becomes "discontinued" — it doesn't close, and existing balance continues to earn interest, but you may need to pay a small penalty per missed year plus the minimum deposits to reactivate it for further contributions.
Is PPF interest really completely tax-free?
Under current rules, yes — PPF falls under the EEE (Exempt-Exempt-Exempt) category, meaning the contribution (up to the Section 80C limit), the annual interest, and the final maturity amount are all exempt from income tax. This is one of the few investment options in India offering this full triple exemption, which is why it remains popular despite a relatively modest headline rate.
Should I choose PPF over equity mutual funds for long-term goals?
It depends on your risk tolerance and the goal's timeline. PPF offers certainty — a fixed, government-backed 7.1% with no market risk. Equity investments historically offer higher average returns over long periods but with significant volatility and no guarantees. Many people use both: PPF as the "safe, guaranteed" portion of a portfolio (especially for goals like retirement where certainty matters), and equity-based options like our SIP Calculator for the growth-oriented portion.