Power of Rs 1,50,000 PPF Investment: In How Many Years Can You Generate Rs 92,000/Month Income and Rs 1.55 Crore Tax-Free Corpus?
Public Provident Fund (PPF) is a popular, government-backed long-term savings scheme known for its safety, tax benefits, and compounded returns. Investing the maximum limit of Rs 1,50,000 annually in your PPF account can generate a substantial retirement corpus over time. But how long would it take, and how much monthly income can it realistically provide?
How Much Can Rs 1,50,000 Annual PPF Investment Grow In 30 Years?
At the current interest rate of 7.1% per annum compounded yearly (subject to quarterly revision), yearly investments of Rs 1.5 lakh grow significantly over a long horizon due to the power of compounding.
After 15 years: Approximately Rs 40.7 lakh*
After 20 years: Around Rs 75 lakh*
After 25 years: About Rs 1.15 crore*
After 30 years: ~Rs 1.55 crore*
*Estimates based on current PPF rates and standard compounding formulas.
This corpus is completely tax-free under the Exempt-Exempt-Exempt (EEE) status, meaning your contributions, interest accumulated, and final maturity amount are exempt from income tax.
Generating Rs 92,000 Monthly Income from the PPF Corpus
To generate Rs 92,000 per month (about Rs 11 lakh annually) as tax-free income, you can safely withdraw or invest the tax-free corpus while preserving the principal:
A Rs 1.55 crore corpus earning 7.1% annually generates approximately Rs 11 lakh in interest, covering your desired monthly income without dipping into principal.
This assumes systematic withdrawals or reinvestment of interest to maintain corpus longevity.
How Long to Achieve Rs 92,000/Month Income Using PPF?
It takes around 30 years of disciplined Rs 1.5 lakh annual investments at 7.1% interest compounding to build this Rs 1.55 crore corpus.
Earlier withdrawals or shorter tenures will produce significantly lower corpus and income.
Why Choose PPF?
Risk-free and Government-backed
Tax Advantages: Contributions under Section 80C, interest, and maturity all tax-free
Compound Interest: Interest compounds annually, boosting returns exponentially over time
Long-term Financial Discipline: Encourages consistent savings over at least 15 years
Frequently Asked Questions
How much will Rs 1.5 lakh annual investment in PPF grow in 15, 20, 25, and 30 years?
Approximately Rs 40.7 lakh in 15 years
Around Rs 75 lakh in 20 years
About Rs 1.15 crore in 25 years
Nearly Rs 1.55 crore in 30 years
(FAQ)
What is the current interest rate on PPF?
The interest rate for FY 2025-26 is 7.1% per annum, compounded yearly, subject to quarterly revision by the government.
Can I get Rs 92,000 monthly income tax-free from my PPF corpus?
Yes, a corpus of Rs 1.55 crore earning 7.1% annually can generate roughly Rs 11 lakh yearly or about Rs 92,000 monthly in tax-free interest income.
Is PPF investment safe?
PPF is backed by the Government of India and considered one of the safest investment avenues for long-term wealth creation.
What is the maximum annual investment limit in PPF?
Currently, individual investors can invest up to Rs 1.5 lakh per financial year in their PPF account.
By regularly investing Rs 1.5 lakh in PPF, you can build a tax-free corpus of Rs 1.55 crore in 30 years and comfortably generate a monthly income of Rs 92,000 from the interest—making it an ideal savings vehicle for retirement planning and long-term financial independence.
Published on: July 22, 2025
Published by: PAVAN
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