Public Provident Fund Calculator

PPF Calculator helps estimate how much you can earn from your Public Provident Fund savings, making it easier to plan your finances better.
EXPLORE
PPF Calculator
EXPLORE

6 mins
15 October 2024

How can a PPF calculator help you?

A  Public Provident Fund calculator is a financial tool that helps you calculate the returns on your Public Provident Fund (PPF) investments. It allows you to determine the maturity amount of your investment, the total interest earned, and the total amount of savings accumulated over a specified period of time. By using a PPF calculator, you can make informed decisions about your investments and plan your finances better.

The calculator automatically applies the latest current PPF rate of interest offered by the government of India, making your experience seamless and hassle free!

Formula used for calculating PPF

The formula used to calculate the maturity amount of a Public Provident Fund (PPF) takes into account:

Variable

Description

F

Maturity of PPF

P

Annual installments

I

Rate of interest

N

Total number of years



Simplified formula: F = P[({(1+i)^n}-1)/i]

Explanation:

  • This formula essentially calculates compound interest. Your annual contribution (P) earns interest, and that interest is reinvested to earn even more interest over time.
  • The interest rate (r) changes annually, so calculations adjust accordingly.

Example:

Assume you invest Rs. 1,50,000 annually (P) in your PPF account for 15 years (n). The current interest rate (r) is 7.1%.

  • Calculation would be a bit complex, as the interest rate (r) would change each year.
  • However, using an online PPF calculator, we find the approximate maturity value would be around Rs. 40,68,209. This includes both your principal contribution and the accumulated interest.

PPF calculation examples for different investment tenures

Let’s understand this with an example
Assuming a 7.1% interest rate, investing Rs. 1.5 lakh annually for 15 years can yield a maturity value of approximately Rs. 40.68 lakh.

Remember:

  • Interest rates can fluctuate.
  • Early withdrawal is possible but discouraged.
  • Consult a financial advisor for personalized advice.

Investment period

Yearly investment

Total interest earned

Maturity value

15 years

Rs. 1.5 Lakh

Rs. 16,94,599

Rs. 39,44,599

20 years

Rs. 1 Lakh

Rs. 23,03,987

Rs. 43,03,987

30 years

Rs. 75,000

Rs. 52,40,722

Rs. 74,90,722


How to use PPF calculator?

Using a PPF (Public Provident Fund) calculator is simple and efficient once you understand how it works. This tool provides quick and reliable estimates, helping you plan your investments better.

All you need to do is enter a few key details:

  • Investment tenure (in years)

  • Total amount invested

  • Monthly or yearly contribution amount

  • Expected interest rate

Once these fields are filled in, the calculator will instantly display your estimated maturity amount.

Advantages of using PPF calculator

The advantages of using a PPF calculator are as follows:

  • Helps with Financial Planning:
    An online PPF calculator shows you how much interest you can earn based on your investment, helping you plan your savings better.

  • Saves Time:
    It automatically uses the current interest rate and calculates everything for you—no manual math needed.

  • Provides Accurate Estimates:
    Just enter your annual investment amount, investment period, and payout frequency to get a reliable estimate of your total returns.

  • Offers Flexibility:
    You can try different inputs multiple times to figure out how much you need to invest to meet your financial goals.

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Frequently Asked Questions

Can I transfer my PPF account to another branch or office?

Yes, you have the freedom to transfer your account to another branch or office.

How much interest rate can I get on my PPF account?

The interest rate is determined by the Central Government periodically. As of October 2024, it stands at 7.1% per annum.

How much PPF will I get after 15 years?

Yes, it’s possible. After the initial 15-year lock-in, you can extend your PPF account in 5-year blocks. By continuing to invest the full Rs. 1.5 lakh annually for 25 years, your savings can grow to over Rs. 1 crore—specifically around Rs. 1.03 crore at the current interest rate.

Can I do PPF for 30 years?

Yes, but in blocks of 5 years after the initial 15 years. You will need to extend your account periodically.

Can I do PPF for 10 years?

No, the minimum PPF investment period is 15 years.

In which month is PPF interest calculated?

PPF interest is calculated monthly.

Can I continue PPF for 25 years?

Yes, you can extend your PPF account beyond the initial 15-year term in blocks of 5 years, effectively allowing you to continue it for 25 years or even longer.

How is PPF calculated?

PPF is calculated based on the principal amount invested, the interest rate set by the government, and the tenure of the investment. The interest is compounded annually, and the final maturity value is determined by summing the compounded interest over the entire investment period.

What is the minimum amount required to start investing in PPF?

The minimum amount required to start investing in a Public Provident Fund (PPF) is Rs 500 per financial year.

What is the minimum lock-in period for PPF?

The minimum lock-in period for a Public Provident Fund (PPF) account is 15 years. The account matures after the completion of 15 financial years from the end of the year it was opened.

What is the maturity period for PPF?

The maturity period of a Public Provident Fund (PPF) account is 15 years from the end of the financial year in which the account was opened.

When can I withdraw the amount from my PPF Account?

You can withdraw the balance from your PPF account after it matures (typically 15 years, extendable in 5-year blocks). Early withdrawal is possible but discouraged due to penalties and loss of tax benefits. Partial withdrawal is allowed after the 7th year, with limits. You can also take a loan against your PPF balance after the 3rd year. Consult a financial advisor for specific advice.

Is PPF investment is Tax-free?

Yes, PPF investment is tax-free. Investments up to Rs. 1.5 lakh per year are tax-deductible under Section 80C. Both the maturity amount and interest earned are tax-free, making PPF a great option for long-term tax savings.

What is 10,000 per month in PPF?

If you invest Rs. 10,000 per month in your PPF account, you'll be investing Rs. 1.2 lakh annually. Assuming a current interest rate of 7.1% and a 15-year investment horizon, your total investment after 15 years would be approximately Rs. 18 lakh. However, due to the power of compounding, your total corpus at the end of 15 years would be significantly higher.

Example:

  • Annual Investment: Rs. 1.2 lakh
  • Interest Rate: 7.1%
  • Investment Period: 15 years
  • Total Investment: Rs. 18 lakh
  • Approximate Maturity Amount: (Considering compounding interest) Rs. 32.5 lakh
What if I invest Rs. 5,000 per month in PPF?

If you invest Rs. 5,000 per month in your PPF account, you'll be investing Rs. 60,000 annually. Assuming a current interest rate of 7.1%, you'll earn approximately Rs. 4,260 in interest in the first year.

Example:

  • Annual Investment: Rs. 60,000
  • Interest Rate: 7.1%
  • First-Year Interest: Rs. 4,260
  • Total Amount at the end of the first year: Rs. 64,260

Remember, the actual returns can vary based on the prevailing interest rate and your specific investment tenure.

How do you get 1 Cr in PPF?

Yes, it’s possible. After the initial 15-year lock-in, you can extend your PPF account in 5-year blocks. By continuing to invest the full Rs. 1.5 lakh annually for 25 years, your savings can grow to over Rs. 1 crore—specifically around Rs. 1.03 crore at the current interest rate.

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