PPF Calculator

What is a PPF Calculator?

A PPF (Public Provident Fund) Calculator is an online tool that helps you figure out how much interest you'll earn and the total amount you’ll have when your investment matures. This tool makes it easy to calculate your potential returns, so you don't have to do complex calculations on your own.

Right now, the interest rate for PPF is 7.1% per year, and the scheme lasts for 15 years. By entering a few details, like your investment amount, interest rate, and how long you plan to invest, you can quickly see:

• How much you’ll get when the investment matures
• How your investment will grow over time
• The total interest you’ll earn

Why Should You Use a PPF Calculator?

PPF calculators save you the time and hassle of doing manual math. They provide fast and accurate results, helping you make smart investment choices.

Benefits of Using a PPF Calculator:

• Accuracy: You get exact numbers for your investment’s maturity and interest.
• Tax Estimation: Helps you figure out how much tax you can save based on your PPF investment.
• Time-Saving: No need for manual calculations—you get the result instantly.
• Flexible: You can enter different amounts to see how changes in your investment affect the returns.
• User-Friendly: It’s easy for anyone to use, even if you're not familiar with financial tools.

How to Use the PPF Calculator

1. Enter the principal investment: Type in how much you plan to invest each year.
2. Provide the interest rate: Enter the current interest rate (7.1% p.a.).
3. Specify the tenure: Choose how many years you want to invest (usually 15 years).
4. Click Calculate: The tool will show you the maturity amount, interest earned, and the total value of your investment.

Formula for PPF Interest

The formula for calculating the total maturity amount in a PPF account is:

F = P [(1 + i)^n - 1] / i
                

Where:

• F: Maturity amount
• P: Amount you invest every year
• i: Interest rate divided by 100
• n: Number of years (usually 15)

While you can use this formula to calculate manually, a PPF calculator is a much easier and more accurate way to get the result.

Types of PPF Calculators

There are different types of PPF calculators depending on your needs:

• Fixed Monthly Investment Calculator: For monthly contributions.
• Fixed Yearly Investment Calculator: For yearly contributions.
• Variable Yearly Investment Calculator: For varying yearly contributions.
• PPF Benefits Calculator: To see how much tax you can save and your total benefits.
• PPF Loan Calculator: To calculate how much you can borrow against your PPF balance.
• Withdrawal Calculator: Helps you estimate how much you can withdraw from your PPF account.
• Maturity Calculator: Tells you how long your account will take to mature and the estimated returns.

Advantages of PPF Investments

• Guaranteed Returns: The Indian government guarantees your investment returns, making it a very safe option.
• Tax Benefits: You can save taxes under Section 80C of the Income Tax Act by investing in PPF.
• Flexible Investment Amounts: You can invest as little as Rs. 500 or up to Rs. 1.5 lakh annually.
• Partial Withdrawals: You can withdraw part of your investment after 7 years.
• Loan Facility: You can borrow against your PPF balance starting from the 3rd year.
• Tax-Free Interest: The interest you earn from your PPF investment is completely tax-free.

Explore Other Financial Calculators

Home Loan Calculator

Personal Loan Calculator

EMI Calculator

RD Calculator

FAQs on PPF Calculator

• Where can I open a PPF account? You can open a PPF account at public-sector banks like SBI or PNB, private banks such as HDFC and ICICI, or even at the India Post Office.
• How long is the lock-in period for PPF? PPF accounts come with a 15-year lock-in period, although partial withdrawals are permitted from the 7th year onwards.
• Is the interest earned on PPF taxable? No, the interest generated from a PPF account is fully tax-free.
• Can I withdraw from my PPF account before it matures? Yes, you may make partial withdrawals beginning in the 7th year.
• Can I extend my PPF account after 15 years? Yes, the account can be extended in 5-year blocks after it matures.
• What is the minimum and maximum amount I can invest in PPF? The minimum investment is Rs. 500 per year, while the maximum limit is Rs. 1.5 lakh per year.
• Can I have more than one PPF account? No, only one PPF account is allowed per individual.
• Is PPF a good way to save on taxes? Yes, it is a popular tax-saving option under Section 80C and offers Exempt-Exempt-Exempt (EEE) benefits.
• Can I transfer my PPF account to another bank or branch? Yes, you are allowed to transfer your PPF account to another bank or post office.
• How is the interest on PPF calculated? Interest is computed on the lowest balance between the 5th and last day of the month and compounded annually.