PPF Interest Calculator — Annual Interest Breakdown — FY 2026-27
See your year-by-year tax-free interest earnings on your PPF account at the current 7.1% GoI rate. Understanding the annual interest breakdown helps you plan deposit timing — since PPF interest is calculated on the minimum monthly balance, depositing before the 5th of each month adds meaningful interest over 15 years.
PPF inputs
- Maturity amount
- ₹40.68 L
- Total deposited
- ₹22.50 L
- Total interest
- ₹18.18 L
- Effective CAGR
- 4.03%
Section 80C tax savings (old regime)
- Annual deduction (capped at ₹1.5L 80C cap): ₹1,50,000
- Lifetime tax savings over 15 yr: ₹6,75,000
- Maturity amount & interest are fully tax-exempt u/s 10(11).
New regime forfeits 80C — these savings apply only if you opt for old regime.
Year-by-year compounding
| Year | Opening | Deposit | Interest | Closing |
|---|---|---|---|---|
| Year 1 | ₹0 | ₹1,50,000 | ₹10,650 | ₹1,60,650 |
| Year 2 | ₹1,60,650 | ₹1,50,000 | ₹22,056 | ₹3,32,706 |
| Year 3 | ₹3,32,706 | ₹1,50,000 | ₹34,272 | ₹5,16,978 |
| Year 4 | ₹5,16,978 | ₹1,50,000 | ₹47,355 | ₹7,14,334 |
| Year 5 | ₹7,14,334 | ₹1,50,000 | ₹61,368 | ₹9,25,701 |
| Year 6 | ₹9,25,701 | ₹1,50,000 | ₹76,375 | ₹11,52,076 |
| Year 7 | ₹11,52,076 | ₹1,50,000 | ₹92,447 | ₹13,94,524 |
| Year 8 | ₹13,94,524 | ₹1,50,000 | ₹1,09,661 | ₹16,54,185 |
| Year 9 | ₹16,54,185 | ₹1,50,000 | ₹1,28,097 | ₹19,32,282 |
| Year 10 | ₹19,32,282 | ₹1,50,000 | ₹1,47,842 | ₹22,30,124 |
| Year 11 | ₹22,30,124 | ₹1,50,000 | ₹1,68,989 | ₹25,49,113 |
| Year 12 | ₹25,49,113 | ₹1,50,000 | ₹1,91,637 | ₹28,90,750 |
| Year 13 | ₹28,90,750 | ₹1,50,000 | ₹2,15,893 | ₹32,56,643 |
| Year 14 | ₹32,56,643 | ₹1,50,000 | ₹2,41,872 | ₹36,48,515 |
| Year 15 | ₹36,48,515 | ₹1,50,000 | ₹2,69,695 | ₹40,68,209 |
Current PPF interest rate — 7.1% p.a. (Apr–Jun 2026 quarter)
The Public Provident Fund (PPF) interest rate is set quarterly by the Department of Economic Affairs (DEA) under the Ministry of Finance, reviewed against the 10-year G-Sec yield plus a spread. The current PPF interest rate for the Apr–Jun 2026 quarter (FY 2026-27) is 7.1% p.a., unchanged for eleven consecutive quarters since Q2 FY 2023-24.
The rate is identical across all PPF custodians — SBI, HDFC, ICICI, Axis, Kotak, India Post, and every other authorised bank. Choosing your custodian affects workflow (app quality, branch accessibility, SI reliability) but not the interest earned.
PPF interest rate history — last 10 years
PPF rates are a lagging proxy for the RBI policy cycle. Rates have fallen steadily since 2015 as inflation and the repo rate moderated, but have been held steady at 7.1% for over two years even through repo-rate hikes — a political choice to protect small savers.
| Financial year | PPF rate | Notes |
|---|---|---|
| FY 2026-27 (Apr–Jun) | 7.1% p.a. | Current rate; unchanged since Q2 FY 2023-24 |
| FY 2025-26 | 7.1% p.a. | Held despite repo moderation |
| FY 2024-25 | 7.1% p.a. | All four quarters |
| FY 2023-24 | 7.1% p.a. | Held through repo hike cycle |
| FY 2022-23 | 7.1% p.a. | All four quarters |
| FY 2021-22 | 7.1% p.a. | Proposal to cut to 6.4% withdrawn after public outcry |
| FY 2020-21 | 7.1% p.a. | Reduced from 7.9% at start of FY |
| FY 2019-20 | 7.9% → 7.1% p.a. | Rate cut within the year |
| FY 2018-19 | 7.6% → 8.0% p.a. | One mid-year bump |
| FY 2017-18 | 7.9% → 7.6% p.a. | Started 8.0%, cut across year |
| FY 2016-17 | 8.1% → 8.0% p.a. | First year of quarterly-reset regime |
| FY 2015-16 | 8.7% p.a. | Fixed annual rate; pre-quarterly-reset regime |
How PPF interest is calculated — the 5th-of-month rule
PPF interest in a given month is calculated on the minimum balance between the close of the 5th day and the close of the last day of that month. This single-sentence rule drives every deposit-timing optimisation in the PPF world:
- A deposit credited on or before the 5th earns interest for that entire month.
- A deposit credited on the 6th or later earns interest only from the next month onwards.
- For the “annual lumpsum” strategy, aim for 1–5 April credit — the deposit then earns a full 12 months of interest in the first year.
Interest accrues month by month but is only credited on 31 March each year (end of financial year). Until then the interest is a running balance; you can’t withdraw it separately.
Year-by-year interest for the classic ₹1.5 lakh × 15 years scenario
Assuming ₹1,50,000 deposited on 1 April each year at the current 7.1% rate, here is how the interest component grows versus the running principal:
| Year | Deposit | Opening balance | Interest earned | Closing balance |
|---|---|---|---|---|
| 1 | ₹1,50,000 | ₹0 | ₹10,650 | ₹1,60,650 |
| 2 | ₹1,50,000 | ₹1,60,650 | ₹22,056 | ₹3,32,706 |
| 3 | ₹1,50,000 | ₹3,32,706 | ₹34,272 | ₹5,16,978 |
| 5 | ₹1,50,000 | ₹7,15,313 | ₹61,438 | ₹9,26,751 |
| 10 | ₹1,50,000 | ₹19,25,617 | ₹1,47,319 | ₹22,22,936 |
| 14 | ₹1,50,000 | ₹33,10,728 | ₹2,45,011 | ₹37,05,739 |
| 15 (maturity) | ₹1,50,000 | ₹37,05,739 | ₹2,72,470 | ₹40,68,209 |
Notice that in year 15 alone the interest earned (₹2.72 L) is almost 2× the fresh deposit (₹1.5 L). The later years of a PPF account are where compounding does its heaviest lifting — which is why extending the PPF with Form H at year 15 is one of the highest-ROI decisions in Indian personal finance.
PPF interest vs bank FD, ELSS, and inflation
7.1% tax-free is equivalent to 10.28% pre-tax at the 30.9% (30% + 4% cess) slab — among the highest risk-free pre-tax yields available to Indian individual savers. Comparison at April 2026 rates:
| Instrument | Nominal rate / return | Post-tax (30% slab) | Real (post 6% inflation) |
|---|---|---|---|
| PPF | 7.1% tax-free | 7.1% | 1.1% |
| SBI 5-yr FD | 6.75% | 4.66% | −1.34% |
| SBI 5-yr Tax-saver FD | 6.75% (80C-eligible) | 4.66% | −1.34% |
| ELSS (long-run equity) | 11% expected | 9.63% (post 12.5% LTCG above ₹1.25 L) | 3.63% |
| Retail inflation (CPI target) | 4% (tolerance 2–6%) | — | — |
PPF wins on post-tax return vs every other debt instrument. ELSS wins on real return but carries equity volatility. The typical recommendation: use PPF for the risk-free bedrock + ELSS for the growth engine within the ₹1.5 L 80C cap.
Related PPF calculators + custodian pages
- Main PPF Calculator — full maturity projection with any deposit/tenure.
- PPF Maturity Calculator — 15 / 20 / 25 / 30-year scenarios.
- SBI PPF Calculator — largest custodian, monthly-SI-friendly.
- HDFC PPF Calculator — private-bank variant with clean NetBanking UI.
- Post Office PPF Calculator — India Post variant.
- PPF vs ELSS vs Tax-saver FD — how to split the 80C cap.
PPF Interest Calculator — Annual Interest Breakdown — FAQ
What is the current PPF interest rate?
7.1% per annum for Q1 FY 2026-27 (Apr-Jun 2026). PPF rates are revised quarterly by the Department of Economic Affairs based on the 10-year G-Sec yield + spread. The rate has been 7.1% continuously since FY 2020-21 — one of the longest stable periods in PPF history.
How is PPF interest calculated monthly or annually?
Mechanically: monthly. Credited: annually. Each month, interest = (minimum balance between 5th and last day) × 7.1% / 12. These monthly figures accumulate and are CREDITED to your account on 31st March. So while interest accrues monthly, it compounds annually — not monthly.
What is PPF interest on ₹1 lakh deposit?
For a ONE-TIME ₹1 lakh deposit (made on April 1st to capture full-year interest), first-year interest = ₹7,100 at 7.1%. Over 15 years with no further deposits, the ₹1 L grows to ₹2,79,929 (₹1.79 L of tax-free interest). With annual ₹1 L deposits for 15 years: corpus = ₹27.12 L.
Is PPF interest compounded monthly or annually?
Annually. Interest is calculated on monthly minimum balances (as above), but ACCUMULATED and CREDITED once a year on 31st March. This is a common misconception — PPF "compounding" is annual, not monthly. Over 15 years, monthly compounding would add only ~₹5-7 K to a ₹22 L contribution — the difference is immaterial vs timing your deposit before the 5th.
When does PPF interest get credited?
31st March of each financial year. The interest calculated on monthly minimum balances throughout April to March gets posted as a single credit entry dated 31st March. You see the year-on-year jump in your passbook at that date, not monthly.
Other PPF calculators
Generic PPF Calculator
Main calculator with all features — extension, withdrawal, loan.
SBI PPF Calculator
SBI PPF Calculator at current 7.
Post Office PPF Calculator
India Post Office PPF Calculator at current 7.
HDFC PPF Calculator
HDFC Bank PPF Calculator at current 7.
PPF Maturity Calculator
PPF Maturity Calculator — PPF corpus at 15, 20, 25, or 30 years at 7.