How to Calculate PPF Maturity
6 min read · Updated September 26, 2026 · by Thomas M, Registered Investment Adviser (South Carolina)
The Public Provident Fund pays tax-free interest at a rate the Government sets each quarter. Its interest is computed monthly but credited yearly, which is why deposit timing matters. This guide shows the calculation.
How PPF interest works
Interest each month = rate ÷ 12 × the lowest balance between the 5th and the end of the month. It is credited at the end of the financial year. A deposit made before the 5th of a month earns interest for that month.
Lump sum before 5 April
Depositing ₹1.5 lakh before 5 April every year earns interest on the whole amount for 12 months: year-end balance = (opening balance + deposit) × (1 + rate). Over 15 years at 7.1% the account reaches ₹40,68,209.22 on ₹22,50,000.00 invested.
Monthly deposits
₹12,500 a month by the 5th gives ₹39,44,599.22 — a little less than the lump sum.
Rules to remember
- ₹500 minimum, ₹1.5 lakh maximum a year.
- 15-year term, extendable in 5-year blocks.
- Rate reviewed quarterly (7.1% for October–December 2026).
- Interest and maturity are tax-free.
Use the PPF calculator for your numbers.
Practice questions
Test yourself, then tap to check. Answers are calculated by the tools linked below.
- ₹1 lakh a year for 15 years at 7.1% (lump sum before 5 April). What is the maturity value?
Show answer
Maturity value: ₹27,12,139.48 · Total interest earned (tax-free): ₹12,12,139.48
- ₹5 lakh FD at 7.25% for 3 years, quarterly compounding. What is the maturity amount?
Show answer
Maturity amount: ₹6,20,273.50 · Interest earned: ₹1,20,273.50
- ₹3,000 a month RD for 36 months at 6.8%. What is the maturity amount?
Show answer
Maturity amount: ₹1,20,035.38 · Interest earned: ₹12,035.38
Frequently asked questions
How is PPF maturity calculated?
By crediting interest each financial year on the balances, computed monthly on the lowest balance between the 5th and month-end.
When should I deposit?
Before the 5th of the month, or before 5 April for a yearly lump sum.
Is PPF taxable?
No: interest and maturity are exempt.
Can the rate change?
Yes, every quarter.
Try it yourself
PPF CalculatorEstimate your Public Provident Fund maturity value with yearly or monthly deposits, tax-free interest and a yearly table.FD CalculatorCalculate fixed deposit maturity amount and interest for any rate, tenure and compounding.RD CalculatorCalculate recurring deposit maturity and interest for a monthly deposit, rate and tenure.Keep learning
How to Calculate FD and RD Maturity6 min readHow Compound Interest Works7 min readHow to Calculate Retirement Savings8 min readReviewed by Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Spot a mistake? Tell us. See our editorial policy. Finance content is educational and not financial advice; see the disclaimer.