PPF Interest Calculator

Calculating your PPF interest takes less than a minute:

1. Enter your opening PPF balance at the start of the financial year.
2. Enter your annual contribution for the year.
3. The current PPF interest rate is pre-filled based on the latest government notification.
4. Click Calculate to instantly see the interest earned for the year and your closing balance.

You can also enter multiple years of contributions to see a complete year-by-year interest and balance breakdown over your entire PPF tenure.

PPF interest is calculated using a specific method that makes the timing of your deposit important:

• Interest is calculated on the minimum balance between the 5th and last day of each month.
• This interest is credited to your account at the end of each financial year (31st March), not monthly.
• The credited interest then becomes part of your balance and earns further interest in subsequent years — this is the compounding effect of PPF.

This calculation method means that if you deposit your annual contribution before the 5th of April each year, the entire amount qualifies for interest for that month. Depositing after the 5th means you lose one month's interest on your contribution.

The interest earned in a financial year is calculated as:

Annual Interest = Sum of (Monthly Minimum Balance × Monthly Interest Rate)

Where:

• Monthly Minimum Balance = Lowest balance between 5th and last day of each month
• Monthly Interest Rate = Annual PPF interest rate ÷ 12

For example, if your PPF balance is ₹5,00,000 at the start of the year and you deposit ₹1,50,000 before 5th April, your total balance of ₹6,50,000 earns interest for all 12 months. At 7.1% per annum, the interest earned for that year would be approximately ₹46,150.

The timing of your PPF deposit has a direct impact on the interest you earn:

• Deposit before 5th of the month — Your deposit qualifies for interest calculation for that entire month, since the minimum balance between the 5th and last day includes your new deposit.
• Deposit after 5th of the month — Your deposit does not qualify for interest for that month, since the minimum balance on the 5th was calculated before your deposit arrived.

Over 15 years, consistently depositing before the 5th of April (for annual contributions) can result in noticeably higher total interest earned compared to depositing later in the financial year.

The PPF interest rate is set by the Government of India and reviewed quarterly. Here is how the rate has changed in recent years:

• FY 2020-21 onwards — 7.1% per annum
• FY 2019-20 — 7.9% per annum
• FY 2018-19 — 8.0% per annum
• FY 2017-18 — 7.6% to 7.9% per annum

Note: Interest rates are subject to change with each quarterly review by the government. Always check the latest applicable rate before making contribution decisions.

Our calculator helps you maximize your PPF returns by allowing you to:

• Get instant, accurate year-by-year interest calculations
• Understand how deposit timing affects your total interest earned
• Compare interest earned at different contribution amounts
• Plan your annual PPF deposits for maximum tax-free returns