What is the PPF Calculator?
A public provident fund is a long-horizon, government-backed savings vehicle with a statutory lock-in measured in years rather than months. The lock-in is often seen as its drawback; in practice it is the feature that makes it work, because the money cannot be casually spent.
This calculator projects what regular contributions could accumulate to across a long term. Rates on such schemes are set periodically by the authorities rather than fixed for the life of the account, so treat any single rate as an assumption.
What each input means
- Yearly deposit
- What you put in each financial year, within the scheme's minimum and maximum. The calculator assumes the deposit is made by the 5th of April, so it earns interest for the whole year.
- Interest rate
- The rate the government sets for the scheme. It is reviewed every quarter and applies to the whole balance, not only to new deposits.
- Tenure
- The account runs for 15 full financial years and can then be extended in five-year blocks. Enter 20, 25 or more to see an extended account with deposits continuing.
How this calculation works
Contributions compound annually, with each year's interest added to a balance that then earns interest itself. Over a term this long the compounding effect becomes the dominant component of the final value, comfortably exceeding total contributions.
Because such schemes typically credit interest based on the balance held during a defined window each month, the timing of a contribution within the month can make a small difference to the interest earned that year.
Formula: Each year: balance = (last balance + deposit) × (1 + r)
Getting the most out of the result
- Contribute early in the year or early in the month where the crediting rules reward it — the same money can earn more simply by arriving sooner.
- Keep the account funded above the minimum every year so it does not lapse and require a fee to revive.
- Treat it as the stable portion of a portfolio rather than the whole of it. The lock-in is a poor fit for money you may need.
- Check the extension options as maturity approaches; continuing an established account is often more valuable than starting fresh.
- Verify the current rate and contribution limits with the official source rather than relying on figures quoted elsewhere.
Common mistakes to avoid
The most frequent planning error is assuming today's rate will hold for the entire term. These rates are reviewed periodically and have moved meaningfully over the years, so a projection at a single rate is indicative only. Savers also let accounts lapse below the minimum contribution and then pay to revive them, or commit money they later need and discover the lock-in is genuinely restrictive. Partial withdrawal and loan facilities usually exist but are limited and only after a qualifying period.
Frequently asked questions
How long is the money locked in?
These schemes run for a fixed statutory term, typically extendable in blocks afterwards. Limited partial withdrawals and loan facilities usually become available only after a qualifying number of years, so treat the funds as long-term.
Is the interest rate fixed for the whole period?
No. The rate is set by the authorities and reviewed periodically, so it changes over the life of the account. Any projection using one rate throughout is an estimate, not a guarantee.
What if I cannot contribute in a given year?
Falling below the minimum usually renders the account inactive, and reactivating it typically requires a small fee plus the missed minimums. The account is not lost, but it costs something to restore.
Is the maturity amount taxable?
Schemes of this kind often enjoy favourable tax treatment on contributions, interest and maturity, which is a significant part of their appeal. Specific provisions vary and change, so confirm current rules rather than assuming.
Can I withdraw partially before maturity?
Usually yes, subject to limits and only after a minimum number of years. The permitted amount is generally capped as a proportion of the balance, so it is not a substitute for accessible savings.
Should this be my only retirement saving?
Rarely. It is a low-risk, long-horizon component that works well alongside growth assets. Relying on it exclusively is likely to leave you short of what a long retirement requires.
Does contribution timing matter?
It can. Where interest is credited on the balance held during a defined window each month, depositing before that cut-off earns interest for that month rather than the next. Small per contribution, meaningful over decades.