PPF Calculator: Formula and Examples
Project annual PPF deposits and interest using an explicitly entered rate.
How the calculation works
The model assumes a beginning-year deposit eligible for the full year’s interest. Actual PPF interest depends on eligible monthly balances, deposit timing, and notified rates. The initial account term is 15 years and extensions use five-year blocks.
PPF formula
Annual balance = (opening balance + annual deposit) × (1 + assumed annual interest rate).
Worked example
With ₹1,50,000 deposited at the beginning of a year and 7.1% assumed interest, the first year ends at ₹1,60,650 when opening balance is zero.
Inputs, assumptions, and interpretation
Annual contributions are limited to ₹500–₹1,50,000 in this model, with a 15-year period or five-year extensions. The interest input is an assumption; actual notified rates and deposit dates can change interest.
Displayed values are rounded, while calculations use unrounded numbers. The charts show modeled values rather than historical performance. For background, see India Post PPF scheme information.
Frequently asked questions
Are the default rates guaranteed?
No. Default inputs illustrate how the calculation works. Enter rates and contribution amounts relevant to your scenario, and review the applicable account or scheme terms.
Does deposit timing affect interest?
Yes. This projection gives each annual deposit a full year’s interest. Depositing later or a change in notified rates can produce a different account value.
How should I interpret a negative result?
Some comparisons or value changes can be negative, including investment losses or a gap between alternative scenarios. Read the result labels to distinguish a balance from a change in value.