PPF & Inflation Adjuster
Project long-term PPF fund values alongside real purchasing power adjustments to evaluate real yields.
PPF Parameters
₹
₹500₹1,500,000
%
4%12%
Years
15 Years50 Years
%
0%15%
Investment Projections
Total Invested Amount
₹2,250,000
Maturity Value (Nominal)
₹4,068,208
+80.8% interest returns Inflation Adjusted Value (Real Worth)
₹1,697,521
-58.3% purchasing power loss PPF Compounding Schedule
Start Period:
| Period | Amount Invested | Interest Credited | Growth delta | Closing Balance | Inflation Adjusted |
|---|---|---|---|---|---|
| 2026 | ₹150,000 | ₹10,650 | +₹10,650 | ₹160,650 | ₹151,557 |
| 2027 | ₹300,000 | ₹22,056 | +₹22,056 | ₹332,706 | ₹296,107 |
| 2028 | ₹450,000 | ₹34,272 | +₹34,272 | ₹516,978 | ₹434,065 |
| 2029 | ₹600,000 | ₹47,355 | +₹47,355 | ₹714,333 | ₹565,819 |
| 2030 | ₹750,000 | ₹61,368 | +₹61,368 | ₹925,701 | ₹691,738 |
| 2031 | ₹900,000 | ₹76,375 | +₹76,375 | ₹1,152,076 | ₹812,168 |
| 2032 | ₹1,050,000 | ₹92,447 | +₹92,447 | ₹1,394,523 | ₹927,437 |
| 2033 | ₹1,200,000 | ₹109,661 | +₹109,661 | ₹1,654,184 | ₹1,037,856 |
| 2034 | ₹1,350,000 | ₹128,097 | +₹128,097 | ₹1,932,281 | ₹1,143,714 |
| 2035 | ₹1,500,000 | ₹147,842 | +₹147,842 | ₹2,230,123 | ₹1,245,289 |
| 2036 | ₹1,650,000 | ₹168,989 | +₹168,989 | ₹2,549,112 | ₹1,342,840 |
| 2037 | ₹1,800,000 | ₹191,637 | +₹191,637 | ₹2,890,749 | ₹1,436,614 |
| 2038 | ₹1,950,000 | ₹215,893 | +₹215,893 | ₹3,256,642 | ₹1,526,841 |
| 2039 | ₹2,100,000 | ₹241,872 | +₹241,872 | ₹3,648,514 | ₹1,613,741 |
| 2040 | ₹2,250,000 | ₹269,694 | +₹269,694 | ₹4,068,208 | ₹1,697,521 |
Understanding PPF & Inflation
The Public Provident Fund (PPF) is a popular tax-free long-term savings scheme in India. While PPF guarantees compound growth, inflation chips away at your future purchasing power. Analyzing nominal vs. inflation-adjusted balances shows what your money is actually worth in today's terms.
Mathematical Formula
F = P \times \frac{(1 + r)^n - 1}{r} \times (1 + r)
\text{Inflation Adjusted Value: } PV = \frac{F}{(1 + i)^n}
Formula Explanation:
- P: Annual deposit amount (assumed at start of the year)
- r: Interest rate per annum (7.1% = 0.071)
- n: Number of years (15 to 50)
- Inflation-Adjusted Value: PV = F / (1 + i)^n where i is inflation rate
Terms & Abbreviations
PPF Public Provident Fund - a central government-backed debt security.
EEE status Exempt-Exempt-Exempt: Deposit is tax-exempt, interest is tax-exempt, and maturity is tax-exempt.
Inflation Adjuster Discounting future capital back to today's value based on average inflation.
Frequently Asked Questions
PPF has a mandatory lock-in period of 15 financial years. After 15 years, it can be extended indefinitely in blocks of 5 years.
A payout of ₹15 Lakhs in 15 years sounds high, but with a 6% inflation rate, it has the purchasing power of only around ₹6.2 Lakhs in today's money. Visualizing this helps you plan your retirement targets realistically.
The maximum limit is ₹1,500,000 per financial year to qualify for Section 80C exemptions and earn interest.