Fifteen years of tax-free compounding.

How is PPF interest calculated?

PPF compounds annually at a government-set rate (currently 7.1%, revised quarterly). This calculator assumes the full year's contribution is made at the start of each year — depositing before the 5th of April each year maximizes interest, since PPF interest is calculated on the minimum balance between the 5th and month-end.

Why is PPF called EEE?

Exempt-Exempt-Exempt: the contribution qualifies for Section 80C deduction (old regime), the interest earned is tax-free, and the maturity amount is tax-free — a combination almost no other Indian instrument offers, which is what makes PPF's effective post-tax return hard to beat for its risk level.

Can I withdraw before 15 years?

Partial withdrawals are allowed from year 7, and loans against the balance from year 3 — but full withdrawal requires completing the 15-year term. After 15 years, the account can be extended in 5-year blocks, with or without fresh contributions.

What's the minimum and maximum contribution?

Minimum ₹500 per year to keep the account active, maximum ₹1,50,000 per financial year — contributions above the cap earn no interest and no tax benefit.

Worked example: ₹1,50,000 invested at the start of each year for 15 years at 7.1% grows to roughly ₹40.7 lakh — ₹22.5 lakh of contributions plus about ₹18.2 lakh of tax-free interest.