What is PPF?
PPF is a long-term, government-backed savings scheme with a 15-year lock (extendable in 5-year blocks). Interest is set by the government each quarter, compounded annually, and the entire scheme is tax-exempt under the EEE (Exempt-Exempt-Exempt) regime.
Formula
Annual compounding, year by year:
Balance(y) = [Balance(y-1) + Deposit] × (1 + r) r = annual interest rate (decimal) repeat for tenure years
How to use this calculator
Enter the annual amount you plan to invest (max ₹1.5 lakh), the current PPF rate (7.1% as of recent quarters — verify on the India Post or your bank site), and tenure. For maximum benefit, deposit by April 5 each year to earn a full year's interest.