PPF Investment Summary

Annual Contribution ₹1,50,000
Monthly Equivalent ₹12,500/month
PPF Interest Rate 7.1% p.a. (current rate)
Investment Period 20 years
Total Amount Invested ₹30,00,000
Interest Earned (Tax-Free) ₹36,58,288
Maturity Corpus ₹66,58,288

Tax Benefit: You also save up to ₹46,800 per year in income tax (at 30% + 4% cess) via 80C deduction on PPF contributions. Over 20 years, that's ₹9,36,000 in total tax savings.

Year-by-Year PPF Growth

Year Annual Deposit Total Deposited Interest Earned Balance
Year 1 ₹1,50,000 ₹1,50,000 ₹10,650 ₹1,60,650
Year 2 ₹1,50,000 ₹3,00,000 ₹32,706 ₹3,32,706
Year 3 ₹1,50,000 ₹4,50,000 ₹66,978 ₹5,16,978
Year 4 ₹1,50,000 ₹6,00,000 ₹1,14,334 ₹7,14,334
Year 5 ₹1,50,000 ₹7,50,000 ₹1,75,701 ₹9,25,701
Year 10 ₹1,50,000 ₹15,00,000 ₹7,30,124 ₹22,30,124
Year 18 ₹1,50,000 ₹27,00,000 ₹28,14,696 ₹55,14,696
Year 19 ₹1,50,000 ₹28,50,000 ₹32,16,889 ₹60,66,889
Year 20 ₹1,50,000 ₹30,00,000 ₹36,58,288 ₹66,58,288

Compare Different Contribution Amounts

How much does contributing more each year change your PPF maturity?

Annual Contribution Total Invested Interest Earned Maturity Amount
₹50,000/year ₹10,00,000 ₹12,19,429 ₹22,19,429
₹75,000/year ₹15,00,000 ₹18,29,144 ₹33,29,144
₹1,00,000/year ₹20,00,000 ₹24,38,859 ₹44,38,859
₹1,50,000/year ₹30,00,000 ₹36,58,288 ₹66,58,288

Calculate Your PPF Returns

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Frequently Asked Questions

How much will PPF give if I invest ₹1.5 Lakh/year for 20 years?

At the current PPF rate of 7.1%, investing ₹1.5 Lakh per year for 20 years gives a maturity corpus of ₹66,58,288. Total investment is ₹30,00,000, and you earn ₹36,58,288 in tax-free interest.

Is PPF interest completely tax-free?

Yes. PPF falls under EEE (Exempt-Exempt-Exempt) tax status: contributions qualify for 80C deduction (up to ₹1.5L/year), interest earned is fully tax-free, and the maturity amount is also tax-free. This makes PPF one of the most tax-efficient savings instruments in India.

Can I withdraw PPF before 15 years?

Partial withdrawal is allowed from Year 7 onwards — up to 50% of the balance at end of Year 4 or Year 6 (whichever is lower). Full premature closure is allowed only after 5 years for specific reasons (serious illness, higher education). Otherwise PPF locks in for the full 15-year tenure.

Should I invest in PPF or ELSS for tax saving?

PPF gives guaranteed 7.1% tax-free returns with zero market risk. ELSS (equity mutual funds) can give 12–15% returns but with market volatility. For risk-averse investors or those prioritising capital preservation, PPF is excellent. For wealth creation over 10+ years with some risk tolerance, ELSS tends to outperform.

Can I deposit more than ₹1.5 lakh in PPF?

No. The maximum annual PPF contribution is ₹1,50,000. Amounts above this do not earn interest and are not eligible for 80C deduction. The minimum annual deposit is ₹500. You can make deposits in up to 12 instalments per financial year.

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