PPF Calculator 2026-27 — Maturity, Real Returns & Dollar Value
Calculate your Public Provident Fund corpus year by year at 7.1% interest. Optionally see inflation-adjusted real returns or the equivalent dollar value — useful for NRIs and anyone benchmarking PPF against global savings rates.
Calculator Inputs
Rate notified quarterly by Ministry of Finance. Edit to model future scenarios.
15 yr is mandatory minimum. 20/25/30 yr requires extending in 5-yr blocks.
Advanced Options (optional)
Deflates corpus to today's purchasing power. India's long-run CPI is ~6%.
For NRIs or anyone benchmarking PPF against dollar savings rates.
Maturity Amount
₹40.68 L
Total Invested
₹22.50 L
Interest Earned
₹18.18 L
Wealth gain: 80.8%
Annual Tax Saving (80C @ 30%)
₹46,800
Total over tenure: ₹7.02 L
Year-by-Year Growth
| Year | F.Y. | Contribution | Interest | Closing Balance | Total Interest |
|---|---|---|---|---|---|
| 1 | 2026-27 | ₹1,50,000 | ₹10,650 | ₹1,60,650 | ₹10,650 |
| 2 | 2027-28 | ₹1,50,000 | ₹22,056 | ₹3,32,706 | ₹32,706 |
| 3 | 2028-29 | ₹1,50,000 | ₹34,272 | ₹5,16,978 | ₹66,978 |
| 4 | 2029-30 | ₹1,50,000 | ₹47,355 | ₹7,14,334 | ₹1,14,334 |
| 5 | 2030-31 | ₹1,50,000 | ₹61,368 | ₹9,25,701 | ₹1,75,701 |
What is Public Provident Fund (PPF)?
Public Provident Fund (PPF) is a government-backed long-term savings scheme introduced in 1968 by the National Savings Institute, Ministry of Finance. It offers guaranteed returns at a rate notified by the government quarterly, currently 7.1% p.a. for FY 2026-27.
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status: your annual contribution is deductible under Section 80C (up to ₹1,50,000), the interest earned is completely tax-free, and the maturity amount is entirely exempt from income tax. This makes PPF one of the few investments in India with zero tax at all three stages.
The account has a mandatory 15-year lock-in period, after which it can be extended in 5-year blocks. PPF accounts can be opened at any Post Office, SBI, or nationalised bank branch, as well as online through authorised banks.
How PPF Interest is Calculated
PPF interest is calculated monthly on the lowest balance between the 5th and the last day of each month, then credited annually on 31st March. The key rule: deposit before the 5th of the month to earn interest for that month.
Simplified year-by-year formula (used by this calculator):
Interest (Year N) = (Opening Balance + Annual Contribution) × 7.1%
Closing Balance = Opening Balance + Contribution + Interest
Worked example: Starting with ₹0, depositing ₹1,50,000 at the start of year 1:
- Year 1 interest: ₹1,50,000 × 7.1% = ₹10,650
- Year 1 closing: ₹1,60,650
- Year 2 interest: (₹1,60,650 + ₹1,50,000) × 7.1% = ₹22,056
- Year 2 closing: ₹3,32,706
- After 15 years at max contribution: ≈ ₹40.7 lakh
PPF Real Returns: What Inflation Actually Costs You
At 7.1% nominal and India's long-run CPI inflation of ~6%, your real (inflation-adjusted) return from PPF is approximately 1.1% per year. The nominal corpus looks impressive, but the purchasing power is significantly lower.
| Tenure | Nominal Maturity | Real Value (6% inflation) | Inflation Drag |
|---|---|---|---|
| 15 years | ₹40.7 L | ₹17.0 L | −₹23.7 L |
| 20 years | ₹86.5 L | ₹27.0 L | −₹59.5 L |
| 25 years | ₹1.66 Cr | ₹38.6 L | −₹1.27 Cr |
Assumes ₹1,50,000/year contribution, 7.1% PPF rate, 6% inflation, all years with contributions. Nominal figures cross-verified with SBI PPF calculator.
This is not a reason to avoid PPF — the EEE tax status is the real return booster. For someone in the 30% slab, the 80C deduction alone adds roughly 1.5–2% effective yield on top of the nominal 7.1%. Enable the inflation toggle above to see your own numbers.
PPF Returns in US Dollars — NRI Benchmarking
If you earn in USD, the dollar view helps you answer: "How many dollars am I effectively locking away each year, and what will the corpus be worth in dollars?"
At ₹84/$1 (April 2026 rate), the maximum annual PPF contribution of ₹1,50,000 is approximately $1,786 per year. The 15-year nominal maturity of ₹40.7 lakh equals approximately $48,450 — equivalent to a modest US savings account return but with the 80C tax benefit added.
Note: NRIs cannot open new PPF accounts. This view is for:
- NRIs with existing PPF accounts (opened before becoming NRI) benchmarking their corpus
- Returning NRIs evaluating whether to extend their PPF post-maturity
- Anyone who thinks in dollars and wants to contextualise Indian savings
The USD/INR rate in the calculator is user-adjustable. It uses your assumed exchange rate, not a live feed — results are illustrative only.
PPF vs NPS vs FD vs EPF — Quick Comparison
| Feature | PPF | NPS | FD (5yr tax saver) | EPF |
|---|---|---|---|---|
| Return (FY 2026-27) | 7.1% guaranteed | 10–12% (market) | 6.5–7% guaranteed | 8.25% guaranteed |
| Tax on return | Exempt | Annuity taxable | Fully taxable | Exempt (if <5yr) |
| Tax on maturity | Exempt | 60% exempt | Exempt | Exempt |
| Lock-in | 15 years | Till age 60 | 5 years | Till retirement |
| Risk | Zero | Market risk | Zero | Zero |
| Max contribution | ₹1.5L/yr | No limit | ₹1.5L/yr | 12% of basic |
EPF return for FY 2025-26: 8.25% (EPFO Board announcement March 2025).
PPF Extension Rules After 15 Years
After the 15-year mandatory lock-in, you have three choices within one year of maturity:
Option 1: Extend with contributions
Continue depositing up to ₹1,50,000/year for another 5 years. Earn 7.1% interest and get 80C deduction. Best if you still have income and want to continue growing the corpus tax-free.
Option 2: Extend without contributions
No new deposits needed. The existing balance continues earning 7.1% interest tax-free. One full withdrawal is allowed per year. Ideal for retirees who want a steady withdrawal with tax-free interest.
If you take no action within one year of maturity, the account is automatically treated as "extension without contributions" — it keeps earning interest but new deposits are not accepted.
Frequently Asked Questions
What is the PPF interest rate for FY 2026-27?
The PPF interest rate for FY 2026-27 is 7.1% per annum, compounded annually and credited on 31st March. The rate is reviewed quarterly by the Ministry of Finance. It has remained at 7.1% since April 2020.
What is the maximum amount I can invest in PPF per year?
You can invest a minimum of ₹500 and a maximum of ₹1,50,000 per financial year in a PPF account. Contributions can be made in a lump sum or in up to 12 instalments per year. Amounts above ₹1,50,000 earn no interest and get no 80C deduction.
What does inflation-adjusted PPF return mean?
Inflation-adjusted return (also called "real return") shows what your PPF maturity is worth in today's purchasing power. At 7.1% PPF interest and ~6% India CPI inflation, the real return is only about 1.1% per year. For example, a nominal maturity of ₹40.7 lakh in 15 years may be worth only ₹17–18 lakh in today's money. The inflation toggle in this calculator shows you this reality.
Can NRIs invest in PPF?
No. NRIs (Non-Resident Indians) cannot open a new PPF account. However, if you had an existing PPF account before becoming an NRI, you can continue contributing until the original 15-year maturity but cannot extend it. The dollar view in this calculator is useful for NRIs who want to benchmark what their existing PPF corpus represents in US dollars.
How is PPF interest calculated each month?
PPF interest is calculated on the lowest balance between the 5th and last day of each month. This means: if you deposit before the 5th of the month, that deposit earns interest for that month. If you deposit after the 5th, it earns interest from the next month. The annual interest is the sum of 12 monthly interest amounts and is credited on 31st March.
Can I extend my PPF account after 15 years?
Yes. Within one year of maturity, you can extend your PPF in 5-year blocks (20, 25, 30 years). You have two options: (1) Extension with contributions — continue depositing up to ₹1,50,000/year and earn interest. (2) Extension without contributions — no new deposits but the existing balance earns 7.1% interest. If you do nothing, the account remains active earning interest but you cannot make new contributions.
Does PPF qualify for Section 80C deduction?
Yes. PPF contributions qualify for Section 80C deduction up to ₹1,50,000 per year, reducing your taxable income. Under the old tax regime, this saves ₹46,800/year in tax for someone in the 30% slab (including 4% cess). Note: Section 80C deduction is not available under the new tax regime.
Can I withdraw from PPF before 15 years?
Partial withdrawal is allowed from year 7 onwards (i.e., from the 7th financial year of account opening). You can withdraw up to 50% of the balance at the end of the 4th year or the year before withdrawal, whichever is lower. Only one partial withdrawal is permitted per financial year. Full premature closure is allowed only in specific circumstances (serious illness, higher education) after 5 years.
Related Calculators
This calculator is for informational and educational purposes only. PPF interest rates are subject to quarterly revision by the Ministry of Finance. Results are estimates based on the assumptions you enter and may not reflect your exact account balance. USD conversion uses the exchange rate you provide — not a live rate. Consult a SEBI-registered financial advisor before making investment decisions.