Post Office PPF Calculator

What Is a Post Office PPF Calculator?

A PPF calculator estimates the maturity value of your Public Provident Fund account after the mandatory 15-year lock-in, based on your yearly contribution and the current interest rate. Since PPF accounts are commonly opened at post offices as well as banks, many people search specifically for a Post Office PPF calculator.

If you want the plain version of this tool, Lemonn also has a PPF calculator. This page adds the Post Office deposit-timing rule that changes your first year of interest.

Current PPF Details

• Interest rate: 7.1% per annum, compounded annually. Reviewed quarterly by the Finance Ministry, though it has stayed unchanged for several consecutive quarters.
• Tenure: 15 years, extendable in blocks of 5 years after maturity.
• Contribution limits: minimum ₹500 per year, maximum ₹1.5 lakh per year.
• Tax treatment: exempt-exempt-exempt. Your contribution qualifies for a Section 80C deduction, the interest earned is tax-free, and the maturity amount is also tax-free.
• Partial withdrawal: allowed from the 7th financial year onward, subject to specific limits.
• Loan facility: available between the 3rd and 6th financial year against the account balance.

The 5th of the Month Rule

PPF interest is calculated monthly on the lowest balance between the 5th and the last day of each month, but credited to the account only once a year, at the end of the financial year.

That means a deposit landing on or after the 5th earns nothing for that month. Depositing before the 5th, ideally in early April at the start of the financial year, maximises the interest you earn. The calculator lets you switch between the two cases to see what that timing costs you.

Worked Example

A yearly contribution of ₹1,50,000, the maximum, for the full 15-year tenure at 7.1% per annum:

• Total contribution over 15 years: ₹22,50,000
• Estimated maturity value: approximately ₹40.7 lakh
• Estimated interest earned: approximately ₹18.2 lakh, entirely tax-free

Post Office PPF vs Bank PPF

There is no difference in returns, rules, or tax treatment between a PPF account opened at a post office and one opened at a bank. The interest rate, contribution limits, and lock-in period are identical, since PPF is a single central government scheme regardless of where the account is held. The choice comes down to convenience: which branch is easier for you to visit, and whether you prefer net banking access.

Key Takeaways

• PPF currently earns 7.1% per annum, compounded annually, with a mandatory 15-year lock-in.
• It carries EEE tax status, so contribution, interest and maturity amount are all tax-free under the old regime.
• Depositing before the 5th of the month, especially early in the financial year, maximises the interest credited for that year.
• A Post Office PPF account and a bank PPF account are functionally identical; only the servicing branch differs.