🏦 PPF Calc India

How to Calculate PPF Maturity Amount

Learn the step-by-step process to calculate your PPF maturity amount, including the formula, interest calculation method, and worked-out examples.

The PPF Maturity Formula

The PPF maturity amount depends on three things: your annual deposit, the interest rate, and the tenure (15 years minimum). The formula looks intimidating, but it's just compound interest with annual additions.

**Formula:**

Maturity Amount = P x [((1 + r)^n - 1) / r]

Where:

  • P = Annual deposit amount
  • r = Annual interest rate (as a decimal, so 7.1% = 0.071)
  • n = Number of years
  • This formula assumes you deposit the same amount at the beginning of each year.

    Step-by-Step Calculation Example

    Let's calculate the maturity amount for Rs 1,50,000 deposited annually at 7.1% for 15 years.

    **Year 1:**

  • Opening balance: Rs 0
  • Deposit: Rs 1,50,000
  • Interest: Rs 1,50,000 x 0.071 = Rs 10,650
  • Closing balance: Rs 1,60,650
  • **Year 2:**

  • Opening balance: Rs 1,60,650
  • Deposit: Rs 1,50,000
  • Interest: (Rs 1,60,650 + Rs 1,50,000) x 0.071 = Rs 22,056
  • Closing balance: Rs 3,32,706
  • **Year 3:**

  • Opening balance: Rs 3,32,706
  • Deposit: Rs 1,50,000
  • Interest: (Rs 3,32,706 + Rs 1,50,000) x 0.071 = Rs 34,272
  • Closing balance: Rs 5,16,978
  • The pattern continues for all 15 years. By the end, your total deposits of Rs 22,50,000 (Rs 1.5 lakh x 15) grow to approximately Rs 40,68,209.

    How Interest Is Actually Calculated

    There's a nuance most people miss. PPF interest isn't simply calculated on the annual balance. It's calculated monthly on the minimum balance between the 5th and last day of each month.

    This means:

  • If you deposit Rs 1,50,000 on April 1st, you earn interest on it from April itself
  • If you deposit Rs 1,50,000 on April 6th, you don't earn interest on that deposit until May
  • If you deposit Rs 12,500 monthly on the 1st, each deposit starts earning from that month
  • The interest is calculated monthly but credited to your account only on March 31st each year. So you see one annual credit, but the calculation happens 12 times.

    What If You Deposit Different Amounts Each Year?

    The formula above assumes equal annual deposits. In reality, PPF allows you to deposit any amount between Rs 500 and Rs 1,50,000 per year. If your deposits vary, you need to calculate year by year.

    This is where a [PPF calculator](/) becomes essential. Manually computing 15 years of varying deposits is tedious and error-prone. Our calculator handles it instantly.

    Factors That Affect Your Maturity Amount

  • Deposit timing: Depositing early in the year (before April 5th) maximizes interest
  • Rate changes: The government can change PPF rates quarterly. Your calculation should account for potential rate changes
  • Partial withdrawals: If you withdraw from year 7 onwards, it reduces your maturity amount
  • Loans: Loans taken between years 3-6 affect your effective return
  • Quick Reference Table

    | Annual Deposit | 15-Year Maturity (at 7.1%) | Total Interest Earned |

    |---------------|---------------------------|----------------------|

    | Rs 50,000 | Rs 13,56,070 | Rs 6,06,070 |

    | Rs 1,00,000 | Rs 27,12,139 | Rs 12,12,139 |

    | Rs 1,50,000 | Rs 40,68,209 | Rs 18,18,209 |

    Use our [PPF calculator](/) to compute your exact maturity amount based on your planned deposits. For comparison with market-linked investments, check out the [SIP Calculator](https://sip-calc-india.pages.dev).

    Try it in the calculator

    See year-wise breakdown for your PPF investment at the current 7.1% rate.

    Open PPF Calculator

    Other PPF Scenarios