The Public Provident Fund (PPF) remains one of India's most trusted long-term savings instruments. With the 2026 interest rate at 7.1% per annum (compounded annually), PPF offers guaranteed, tax-free returns backed by the Government of India. Our PPF Calculator helps you project your maturity value, plan 5-year extension blocks, and understand your Section 80C tax benefits — all in under 30 seconds.
Current PPF Interest Rate for FY 2025-26
The Government of India reviews PPF interest rates quarterly. For FY 2025-26, the rate stands at 7.1% per annum, compounded annually. This rate has remained stable since January 2023. PPF interest is calculated on the minimum balance between the 5th and last day of each month, making early deposits each month more beneficial.
How PPF Maturity Value Is Calculated
PPF maturity depends on your annual deposits, the prevailing interest rate, and the 15-year lock-in period. The formula uses annual compounding: Maturity = Σ [P × ((1+r)^n - 1) / r] where P is the yearly deposit, r is the annual rate, and n is the remaining years. Our calculator handles variable deposits, partial withdrawals after year 7, and 5-year extension blocks automatically.
PPF Tax Benefits Under Section 80C
PPF enjoys EEE (Exempt-Exempt-Exempt) tax status — your deposits up to ₹1.5 lakh qualify for Section 80C deduction, the interest earned is tax-free, and the maturity amount is fully exempt from income tax. This makes PPF one of the most tax-efficient investments available to Indian residents, especially for those in the 30% tax bracket who effectively earn 10.14% pre-tax equivalent returns.
PPF vs Fixed Deposit: Which Is Better in 2026?
While FDs offer flexibility in tenure, PPF beats them on post-tax returns for long-term investors. A 7% FD in the 30% tax bracket yields only ~4.9% post-tax, compared to PPF's full 7.1% tax-free return. However, FDs offer shorter lock-in periods and are DICGC-insured up to ₹5 lakh. Use our calculator to compare both scenarios side-by-side.
PPF Extension Rules After 15 Years
After the initial 15-year term, you can extend your PPF in blocks of 5 years — with or without fresh contributions. Extension with contributions allows continued Section 80C benefits, while extension without contributions lets your existing corpus grow tax-free. You must apply for extension within 1 year of maturity. Our calculator supports up to 3 extension blocks (30 years total).