What this calculator does
The Public Provident Fund (PPF) is a sovereign-backed 15-year statutory savings scheme under the Government of India offering tax-free compounding under the EEE (Exempt-Exempt-Exempt) framework.
Formula & Mathematical Logic
F = P × [((1 + i)^n − 1) ÷ i] × (1 + i)
P is the annual deposit (up to ₹1.5 Lakh/year), i is the annual government interest rate, and n is tenure in completed years (minimum 15).
How WealthAura calculates this
Interest is calculated monthly on the lowest balance between the 5th and the end of the month, and credited to the account at financial year end (March 31). Annual compounding applies over the mandatory 15-year tenure (extendable in 5-year blocks).
Worked example
Investing the maximum ₹1,50,000 every year at the current 7.1% government interest rate accumulates approximately ₹40.68 Lakh at the end of 15 years on an invested principal of ₹22.50 Lakh.
Input sensitivity & what changes
Depositing on or before April 5th of each financial year maximizes interest, earning an extra ₹2 to ₹3 Lakh compared to depositing irregularly at year-end.
How to interpret the result
Review the total tax-free maturity amount alongside the annual compounding breakdown. PPF is ideal for long-term debt allocation and retirement safety.
Key factors that influence the outcome
Deposit timing (before 5th of the month), annual investment limit (₹500 to ₹1,50,000), extension with or without contributions, and prevailing notified rates.
Common calculation mistakes to avoid
Depositing after the 5th of the month (losing that month's interest) or depositing more than ₹1.5 Lakh in a financial year (excess earns zero interest).
Underlying assumptions & legal caveats
Assumes uniform annual deposit made on or before April 5th and a constant interest rate throughout the 15-year tenure.
Read the related guide →