The Public Provident Fund (PPF) is a popular long-term investment scheme backed by the Government of India. It offers an attractive rate of interest and tax benefits, making it a secure choice for creating a tax-free retirement corpus or funding other long-term goals.
Key features include a 15-year lock-in period, which can be extended in blocks of 5 years. The investments, interest earned, and maturity amount are all exempt from tax, falling under the Exempt-Exempt-Exempt (EEE) category.
How PPF Maturity is Calculated
The interest on a PPF account is compounded annually. Our calculator uses the future value of an annuity formula to estimate the maturity value based on fixed yearly contributions.
A = P × [ ((1 + i)^n - 1) / i ]
- A is the maturity amount.
- P is the annual investment.
- i is the annual interest rate (as a decimal).
- n is the tenure in years.
This formula helps you project the growth of your yearly investments over the entire tenure.