PPF Investment Summary

Annual Contribution ₹12,000
Monthly Equivalent ₹1,000/month
PPF Interest Rate 7.1% p.a. (current rate)
Investment Period 20 years
Total Amount Invested ₹2,40,000
Interest Earned (Tax-Free) ₹2,92,663
Maturity Corpus ₹5,32,663

Tax Benefit: You also save up to ₹3,744 per year in income tax (at 30% + 4% cess) via 80C deduction on PPF contributions. Over 20 years, that's ₹74,880 in total tax savings.

Year-by-Year PPF Growth

Year Annual Deposit Total Deposited Interest Earned Balance
Year 1 ₹12,000 ₹12,000 ₹852 ₹12,852
Year 2 ₹12,000 ₹24,000 ₹2,616 ₹26,616
Year 3 ₹12,000 ₹36,000 ₹5,358 ₹41,358
Year 4 ₹12,000 ₹48,000 ₹9,147 ₹57,147
Year 5 ₹12,000 ₹60,000 ₹14,056 ₹74,056
Year 10 ₹12,000 ₹1,20,000 ₹58,410 ₹1,78,410
Year 18 ₹12,000 ₹2,16,000 ₹2,25,176 ₹4,41,176
Year 19 ₹12,000 ₹2,28,000 ₹2,57,351 ₹4,85,351
Year 20 ₹12,000 ₹2,40,000 ₹2,92,663 ₹5,32,663

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 ₹₹12,000/year for 20 years?

At the current PPF rate of 7.1%, investing ₹₹12,000 per year for 20 years gives a maturity corpus of ₹5,32,663. Total investment is ₹2,40,000, and you earn ₹2,92,663 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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