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PPF Calculator

₹
75250 ₹ 500 ₹ 1,50,000
32 15 50

Result

Total Invested Amount

₹ 2,80,565

Total Interest

₹ 2,80,565

Maturity Amount

₹ 5,65,000

Explore Investment

The Public Provident Fund (PPF) has always been one of the best investment options available in the market to build savings through risk-free returns. You can also avail tax deduction of up to Rs 1.5 lakhs per annum under Section 80C of the Income Tax Act by investing in a PPF scheme.

If planning to select an investment plan and you are considering investing in PPF to grow your wealth, the first thing you will want to do is calculate your returns and compare them with other options. To determine the maturity value, consider using the PPF calculator. The online tool will help you determine your profits and tax savings.

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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What is a PPF Calculator?

A PPF calculator is an online financial calculation tool which is designed to determine the maturity value of a PPF and the total interest earned on the entire investment. It allows you to effortlessly track your investment value over the years. You can also use the investment calculator to identify the growth in your investment with a rate of return of your choice.

The online toolsimplifies the calculation process for people who are usually not familiar with such complex calculations. You can use it to find out the total maturity value of your PPF investment along with the amount of interest earned over the period. This can be beneficial while planning your investment and your overall finances.

There are many types of online calculators like the premium calculator, ULIP calculator and income tax calculator that you can use for financial planning.

How Does a PPF Calculator Work?

A PPF calculator utilises the compound interest formula to determine the maturity value for a given term and the interest earned during the period. Most PPF calculators have a user-friendly interface where the user will have to enter the annual investment amount and period in years to get the results.

This can be extremely helpful for the investors as they can get an idea of the maturity value therefore they can plan out their finances accordingly.

Formula Used for Calculating PPF 

The working of a PPF calculator is based on the following mathematical formula to determine the maturity value at the end of tenure:

A = P [({(1+i) ^n}-1)/i]
i = Rate of interest
A = Maturity Amount
n = Investment Tenure in years
P = Annual Investment 

The maturity value of a Rs. 500 investment over a period of 15 years at an interest rate of 7.1% p.a. compounded annually is Rs. 13,561. Here is the calculation of the same depicted in a tabular format.

Year

Investment

Interest

Maturity Value

1

Rs. 500 

Rs. 35

Rs. 535

2

Rs. 1,000 

Rs. 109

Rs. 1,109

3

Rs. 1,500 

Rs. 223

Rs. 1,723

4

Rs. 2,000 

Rs. 381

Rs. 2,381

5

Rs. 2,500 

Rs. 586

Rs. 3,086

6

Rs. 3,000 

Rs. 840

Rs. 3,840

7

Rs. 3,500 

Rs. 1,148

Rs. 4,648

8

Rs. 4,000 

Rs. 1,514

Rs. 5,514

9

Rs. 4,500 

Rs. 1,941

Rs. 6,441

10

Rs. 5,000 

Rs. 2,434

Rs. 7,434

11

Rs. 5,500 

Rs. 2,997

Rs. 8,497

12

Rs. 6,000 

Rs. 3,636

Rs. 9,636

13

Rs. 6,500 

Rs. 4,355

Rs. 10,855

14

Rs. 7,000 

Rs. 5,162

Rs. 12,162

15

Rs. 7,500 

Rs. 6,061

Rs. 13,561

 

An Example of PPF Calculation
 

Let's understand the same with the help of an example. For instance, Ms Nandy made an annual investment of Rs. 75,000 for 15 years into a PPF. We will assume that the PPF offers interest at the rate of 7.1% p.a. Now, we can use the above formula to know the returns. 

Using the formula, it would look like this:

A = 75000 [({(1+7.1) ^15}-1)/7.1]
A = Rs. 20,34,105

Therefore, she would be receiving Rs. 20,34,105 as maturity value at an interest rate of 7.1% per annum. She can also track the amount of investment and the amount of interest earned separately. Here the investment amount (principal) is Rs. 11,25,000 and the interest earned is Rs. 9,09,105.

This calculation may seem to be too much of a hassle for most people. To simplify the complexity, a PPF account calculator can be used. Here is the calculation of Ms Nandy’s PPF investments shown in a table. 

Year

Investment 

Interest

Maturity Value

1

Rs. 75,000 

Rs. 5,325

Rs. 80,325

2

Rs. 1,50,000 

Rs. 16,353

Rs. 1,66,353

3

Rs. 2,25,000 

Rs. 33,489

Rs. 2,58,489

4

Rs. 3,00,000 

Rs. 57,167

Rs. 3,57,167

5

Rs. 3,75,000 

Rs. 87,851

Rs. 4,62,851

6

Rs. 4,50,000 

Rs. 1,26,038

Rs. 5,76,038

7

Rs. 5,25,000 

Rs. 1,72,262

Rs. 6,97,262

8

Rs. 6,00,000 

Rs. 2,27,092

Rs. 8,27,092

9

Rs.  6,75,000 

Rs. 2,91,141

Rs. 9,66,141

10

Rs. 7,50,000 

Rs. 3,65,062

Rs. 11,15,062

11

Rs. 8,25,000 

Rs. 4,49,556

Rs. 12,74,556

12

Rs. 9,00,000 

Rs. 5,45,375

Rs. 14,45,375

13

Rs. 9,75,000 

Rs. 6,53,322

Rs. 16,28,322

14

Rs. 10,50,000 

Rs. 7,74,257

Rs. 18,24,257

15

Rs. 11,25,000 

Rs. 9,09,105

Rs. 20,34,105

How Can a PPF Calculator Help You?

Using a PPF calculator can help you get a clear picture of several aspects especially if you are new to the field of investments. It can turn out to be a lifesaver if you want to plan out your finances in a structured way. Here’s how it can help you:

  • If you are planning to build a substantial corpus, you can determine the amount of annual investments required to reach your goal and start investing accordingly.

  • You can get a clear growth impression of your PPF investments over time.

  • You can use a PPF calculator free of cost without downloading any third-party software.

  • With most calculators, there is the option of viewing the calculation in a graphical or tabular format for a better understanding and visualisation of your returns.

  • As the calculation is an automated tool and based on a mathematical formula, the probability of errors is minimal. The same cannot be said for manual calculations. 

How to Calculate Expected Returns from PPF? 

You can calculate your expected returns from PPF using the formula given below:

A = P [({(1+i) ^n}-1)/i]
Here,
A = Maturity value
I = Interest Rate
P = Annual Investment
N = Tenure

Let’s understand the expected return calculation with the help of an example. For instance, let’s consider the above example of Ms Nandy who has been investing Rs. 75,000/yearly in a PPF for 15 years at an interest rate of 7.1%. 

Therefore the maturity amount would be 

A = 75,000[({(1+7.1) ^15}-1)/7.1]
= Rs. 20,34,105

How to Use a PPF Calculator?

If you are new to online financial calculators, you can follow the steps to use a PPF calculator given below:

Step 1: Navigate to an online PPF calculator.

Step 2: Enter the annual investment and time period, usually in most PPF calculators users are not required to enter the interest rate as it is set by EPFO and remains the same across all Financial Institutions.

Step 3: Within a fraction of seconds the results will be displayed on your screen.

Benefits of using a PPF calculator

Here are some of the core benefits of using a PPF calculator:

1

Investment and Financial Planning

A PPF interest rate calculator can help you to determine the maturity value of your investments; there are some calculators which also provide a table view or graphical view of your investment.

2

Free to Use Tool

There are no charges or fees to use a PPF calculator. Therefore, you can use it as many times as you wish. Also, you can play around with the annual investment amount as it can help you to determine the annual investment required to achieve a set corpus, helping you to plan your overall finances.

PPF Interest Rates FY 2023-24

The PPF interest rate for the current quarter remains unchanged. The rate of interest for the current quarter of 2023-24 is 7.10% p.a. as of November 2023. This rate is revised by the Ministry of Finance as and when required.

The interest on your investment is calculated every month on the lowest amount of balance between the fifth day and the last day of the month. The interest amount is credited annually at the end of the year. Hence, it is a good idea to start a PPF investment between the 5th and the last day of the month to gain the maximum benefits from it.

Tax Benefits of PPF Investments

There are some lucrative tax benefits of investing in the Public Provident Fund. The entire amount of investment can be exempted under deductions under 80C of the Income Tax Act. However please note that the amount of investment must not exceed Rs 1.5 lakhs in a financial year. Your interest income earned is also exempted from any sort of taxation.

However, that’s not all the tax benefits of PPF. The entire maturity amount is exempt from taxes. Due to the triple tax benefits it offers, PPF carries the rate EEE (exempt-exempt-exempt) status. Even if you make partial withdrawals or close your account, you can avail these tax benefits.

Now, let us learn more about PPF to understand why it’s so popular. 

Why Invest in PPF?

There are plenty of reasons that make PPF one of the most popular investment options in the market. You can make partial withdrawals or avail a loan against the same or you can also check your account statements online. Moreover, it can be one of the best low-risk long-term investment options out there in the market, especially for conservative investors or investors of low-risk appetite.

Here are some of the best reasons to invest in a PPF scheme:

1

Flexible Investment

The amount of investments is quite flexible. An investor can start his/her investment journey with a minimum amount of Rs. 500 on an annual basis. This amount can go as high as Rs. 1.5 lakhs annually making it one of the most affordable options out there in the market.

2

Partial Withdrawal Facility

PPF comes with a lock-in period of 15 years. However, a partial withdrawal can be made after the completion of 6 years i.e. 7th year onwards. During emergencies, these options can be a lifesaver or extremely beneficial for the investors.

3

Power of Compounding

Investment in a PPF scheme allows the investor to enjoy the benefits of compounding on an annual basis. Although there is the partial withdrawal facility, it helps investors be disciplined and maintain a long investment of at least 15 years. With a sizable annual investment, investors can earn a significant amount of interest by leveraging the power of compounding.

4

Loan Against PPF

Investors can also avail loans against their PPF investments at an affordable rate of interest. However, this feature can be availed from the 3rd year to the 6th year of opening the account. It serves as one of the most beneficial investment options offering short-term loans without pledging collateral.

5

Low Risk

Public Provident Fund is a government initiative backed by the central government. Hence, it is considered as one of the best low-risk investment opportunities available in the market. This makes it suitable for conservative investors with a low-risk appetite. Coupled with the triple tax exemption benefit, these features make PPF ideal for retirement planning.

Alternative Investment Options

Here are some of the best alternative investment options to PPF:

1

Equity Linked Savings Scheme (ELSS)

Equity-linked savings scheme is an equity mutual fund with a lock-in period of 3 years. You can get a tax deduction of up to Rs 1.5 lakhs per annum under Section 80C of the Income Tax Act. There is no maximum limit on the amount of investment. The minimum amount can be as low as Rs. 100 per month.

2

National Pension Scheme (NPS)

NPS is a Government of India initiative to extend the perks and benefits of pensions to all Indian citizens. It is a market-linked scheme where a substantial portion of the funds is invested in equities.

There are certain restrictions on premature withdrawal. One can only withdraw 20% of their corpus and investors have to use 80% of the accumulated corpus to purchase an annuity.

However, after attaining 60 years of age, one can withdraw 60 per cent of the corpus value which is completely tax-free. But they will have to use 40% of their balance amount to purchase an annuity.

3

National Savings Certificate (NSC)

National Savings Certificate is amongst the most popular investment opportunities backed by the GOI (Government of India). These are government-issued savings bonds that provide guaranteed returns and tax-savings. The bond matures after 5 years from the date of deposit. The minimum amount of investment is Rs. 1000 per annum however there is no maximum limit.

Conclusion

A PPF calculator can be one of the helpful financial tools, as it can help you determine the maturity value of your PPF at the end of the tenure. By using this tool, you can get an ideal of how much you need to invest to achieve your financial goals and plan your investments accordingly. There are several PPF calculators online which offer a graphical representation of the investment growth over time.

FAQ's on Public Provident Fund

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

Currently, as of November 2023, the rate of interest on a PPF account is 7.1% per annum compounded on an annual basis. However, this value is revised by EPFO collaborating with the Ministry of Finance on a regular basis.

2 How much will I get in PPF after 15 years?

The amount you will receive on maturity will totally depend on the amount of your annual investments over a period of 15 years. The current rate of interest offered by PPF is 7.1% per annum compounded annually. At this rate, an investment of Rs. 10,000 yearly will get you Rs. 1,21,214 in interest income. 

3 How can I calculate my PPF amount?

You can calculate your PPF maturity value using a PPF calculator online, where you will have to enter the annual investment amount and the tenure. Usually, investors are not required to enter the rate of interest as it remains fixed across all the financial institutions.

4 What is the minimum tenure and investment amount to open a PPF account?

The lock-in period for a PPF is 15 years from the date of opening the account. However partial withdrawals are allowed in a PPF scheme from 7th year onwards.

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