Quick answer
PPF currently earns 7.1% a year, compounded yearly and fully tax-free. Investing the maximum ₹1.5 lakh every year for 15 years gives about ₹40,68,209. You invest ₹22.5 lakh and earn about ₹18,18,209 in interest. Extend by 5 years to about ₹66,58,288.
Key takeaways
- Current rate: 7.1% p.a. for Oct–Dec 2026 (Q3 FY 2026-27). The government resets it every quarter.
- Deposit before the 5th of April (or the 5th of each month) to earn interest for the full period.
- PPF is EEE: deposits get 80C (old regime), and interest and maturity are tax-free in both regimes.
- Partial withdrawals are allowed from year 7; loans from year 3 to year 6.
How PPF interest is calculated
Interest is calculated monthly on the lowest balance between the 5th and the last day of the month, and credited on 31 March. Depositing the full amount before 5 April each year gets you the maximum interest.
Balanceyear = (Balanceprevious + Deposit) × (1 + r)PPF maturity table
| Yearly deposit | 15 yrs | 20 yrs | 25 yrs | 30 yrs |
|---|---|---|---|---|
| ₹12,000 | ₹3.25 L | ₹5.33 L | ₹8.25 L | ₹12.36 L |
| ₹24,000 | ₹6.51 L | ₹10.65 L | ₹16.49 L | ₹24.72 L |
| ₹50,000 | ₹13.56 L | ₹22.19 L | ₹34.36 L | ₹51.5 L |
| ₹1,00,000 | ₹27.12 L | ₹44.39 L | ₹68.72 L | ₹1.03 Cr |
| ₹1,50,000 | ₹40.68 L | ₹66.58 L | ₹1.03 Cr | ₹1.55 Cr |
Frequently asked questions
What is the PPF interest rate for 2026?
7.1% per year for Oct–Dec 2026 (Q3 FY 2026-27). It has stayed at 7.1% since April 2020. The government reviews it every quarter.
How much will ₹1.5 lakh a year in PPF give after 15 years?
About ₹40,68,209 at 7.1%, all tax-free.
Can I extend PPF after 15 years?
Yes, in blocks of 5 years, with or without fresh deposits. To extend with contributions, submit Form H within one year of maturity.
Is PPF useful in the new tax regime?
You lose the 80C deduction, but interest and maturity stay tax-free. That still makes PPF attractive as a safe, tax-free debt option, especially for people in higher slabs.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.