PPF Calculator

The Public Provident Fund (PPF) is a long-term savings scheme established by the Indian government to encourage savings. It offers attractive interest rates and tax benefits under section 80c of IT act, making it one of the most attractive savings schemes for long term effect

With a solid tenure of 15 years which is extendable by another 5 years, the PPF account is ideal for those who are looking to build a retirement corpus.

What is PPF Calculator?

A Public Provident Fund (PPF) Calculator is an online tool designed to help investors estimate the value of PPF investments. By entering the Investment amount, tenure, and interest rate, the calculator provides an estimate of your returns.

How does a Public Provident Fund calculator works?

The PPF works by allowing investing a minimum of Rs. 500 and a maximum of Rs. 1.5 Lakhs per financial year. The investment earns interest, which will be compounded annually and credited to the account at the end of financial year. The account would mature after 15 years and the accumulated amount can either be withdrawn or extended for another 5 years. Partial withdrawals and loans against PPF investment are allowed under special circumstances

What are the Benefits of PPF?

• Tax Benefits: The PPF interest and maturity amount are tax-free under section 80C of the Income Tax Act, 1961
• Guaranteed Returns: The interest rates are set by government offering an extra layer of security.
• Long-Term Savings: With a 15-year lock-in period, PPF encourages disciplined long-term savings.
• Loan Facility: Investors can avail loans against their PPF balance between the 3rd and 6th year of opening the account.

What is the Formula to Calculate PPF Returns?

The formula to calculate returns from PPF investment can be calculated as follows

M = P [ ( { (1 + i) ^ n } - 1 ) / i ]

• M – Maturity Amount
• P – Annual Investment
• I – Interest rate
• N – Compounding Frequency

How to Use PPF calculator?

• Enter the Annual Investment Amount you wish to invest each year
• Select the tenure minimum of 15 years
• Enter the rate of interest
• The calculator will display the estimated maturity value and the total interest earned

For example, if you invest an annual amount of Rs. 1,50,000 in their PPF investment for a period of 15 years at an interest rate of 7.1%, then his/her maturity sum at the closing year will be equal to Rs. 27.12,139

FAQ for PPF calculator

1. What is a PPF Calculator?

PPF Calculator is a tool that estimates the maturity value of your PPF investments based on inputs like annual contribution, tenure, and interest rate.

2. How accurate is the PPF Calculator?

The calculator provides a close estimate, but the actual returns may vary

3. Can I change the tenure in the PPF Calculator?

Yes, the calculator allows you to input different tenures to check how it affects the maturity amount

4. Does the PPF Calculator consider tax benefits?

No, it does not take into account tax benefits

5. Is the PPF Calculator free to use?

Yes, the PPF calculators are available online for free