PPF Calculator
PPF stands for Public Provident Fund. It is a long-term savings cum tax-saving investment scheme in India, backed by the government, offering guaranteed returns and tax benefits under Section 80C of the Income Tax Act.
Investment Parameters
Projected Returns
Total Investment
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Interest Earned
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Maturity Value
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Yearly Growth Projection
This chart visualizes the year-on-year growth of your investment, showing how your principal (blue) and earned interest (orange) accumulate over the selected tenure.
Year-by-Year Breakdown
The table below provides a detailed annual breakdown of your PPF account's journey, including opening balance, annual deposit, interest earned, and the closing balance for each year.
| Year | Opening Balance (₹) | Annual Deposit (₹) | Interest Earned (₹) | Closing Balance (₹) |
|---|
This page is designed to help you understand the intricacies of PPF investments, how they grow over time, and how our user-friendly calculator can assist you in planning your financial future. You’ll find valuable information on PPF benefits, the underlying formula, and practical examples.
How Can a PPF Calculator Help You?
A Public Provident Fund (PPF) calculator is an essential online tool that simplifies the often complex process of estimating your PPF maturity amount and interest earnings.
Instead of manually performing intricate calculations, this PPF calculator helps you take control of your financial future by providing instant clarity on your investments. It allows you to quickly input your annual investment amount, your desired investment tenure, and the prevailing interest rate. In return, it provides you with an accurate projection of your total maturity value, the total interest you’ve earned, and the cumulative amount you’ve invested.
This helps you plan your long-term savings effectively, understand the power of compounding firsthand, and make informed decisions about your personal financial journey. It’s particularly useful for setting your financial goals, assessing different investment scenarios that fit your unique needs, and understand your wealth growth over time to stay motivated.
Formula Used for Calculating PPF
The Public Provident Fund (PPF) investment follows a compound interest formula that helps illustrate how your money grows over time. The formula used is:
Let’s break down each component of this formula:
- F (Future Value/Maturity Amount): This is the total amount you will receive at the end of the investment tenure, including your principal contributions and the accrued interest.
- P (Principal/Annual Investment): This represents the fixed amount you invest annually into your PPF account.
- i (Annual Interest Rate): This is the interest rate applicable to your PPF account, expressed as a decimal (e.g., 7.1% would be 0.071).
- n (Number of Years): This is the total duration of your investment in years. PPF accounts typically have a lock-in period of 15 years, but can be extended in blocks of 5 years.
In essence, the formula calculates the future value of a series of equal annual payments, compounded at a specific interest rate over a set number of years. The term ^ calculates how much a single rupee would grow to after ‘n’ years at ‘i’ interest. The entire expression ^ is a standard formula for the future value of an ordinary annuity, multiplied by your annual payment ‘P’ to give you the total maturity amount.
How to Use the PPF Calculator?
Using our PPF calculator is straightforward. Follow these simple steps to get an instant estimate of your PPF maturity amount:
- Enter Annual Investment: Input the amount you plan to invest annually into your PPF account. The maximum limit is currently ₹1.5 lakh per financial year.
- Select Investment Tenure: Choose the number of years you wish to invest. The minimum lock-in period for PPF is 15 years. You can also select longer periods if you plan to extend your account.
- Enter Current Interest Rate: Input the prevailing PPF interest rate. This rate is set by the government and may be revised quarterly.
- Click "Calculate": Once you've entered all the details, click on the "Calculate" button.
- View Results: The calculator will instantly display your estimated maturity amount, the total interest earned, and the total amount you've invested over the chosen tenure.
Advantages of Using our PPF Calculator
Utilizing this PPF calculator offers numerous benefits for both new and existing investors:
- Accurate Projections: It provides precise estimates of your maturity amount, eliminating manual errors and giving you confidence in your financial planning.
- Time-Saving: Instead of complex manual calculations, you get instant results, saving you valuable time and effort.
- Financial Planning: Helps you set realistic financial goals, such as saving for retirement, a child's education, or a down payment for a house, by showing you the potential growth of your investment.
- Understanding Compounding: Visually demonstrates the power of compounding, allowing you to see how your interest earns interest, leading to significant wealth creation over the long term.
- Scenario Analysis: Enables you to experiment with different investment amounts and tenures to see how they impact your final maturity value, helping you optimize your investment strategy.
- Informed Decision Making: Provides clear data to help you make informed decisions about your PPF contributions and overall financial portfolio.
- Accessibility: Easily accessible online, allowing you to calculate your PPF returns anytime, anywhere.
- Goal Setting: Assists in setting clear financial milestones by showing you what your PPF investment could be worth at various points in time.
An Example: PPF Investment at 7.1%
Suppose you decide to invest the maximum permissible amount of ₹1.5 lakh per year into your PPF account for a period of 15 years, with the current interest rate being 7.1% per annum.
Over these 15 years, your dedicated annual contributions will accumulate significant interest, leading to a substantial maturity amount. This example highlights how consistent, disciplined investing combined with the compounding effect of PPF can lead to significant wealth creation.
Here’s a detailed table showing the compounding of your ₹1.5 lakh annual investment over 15 years at a 7.1% interest rate:
| Year | Opening Amount (₹) | Deposit (₹) | Rate of Interest (%) | Interest Earned (₹) | Closing Amount (₹) |
|---|---|---|---|---|---|
| 1 | 0.00 | 1,50,000 | 7.1 | 10,650.00 | 1,60,650.00 |
| 2 | 1,60,650.00 | 1,50,000 | 7.1 | 22,026.15 | 3,32,676.15 |
| 3 | 3,32,676.15 | 1,50,000 | 7.1 | 34,260.91 | 5,16,937.06 |
| 4 | 5,16,937.06 | 1,50,000 | 7.1 | 47,402.53 | 7,14,339.59 |
| 5 | 7,14,339.59 | 1,50,000 | 7.1 | 61,498.11 | 9,25,837.70 |
| 6 | 9,25,837.70 | 1,50,000 | 7.1 | 76,601.48 | 11,52,439.18 |
| 7 | 11,52,439.18 | 1,50,000 | 7.1 | 92,763.18 | 13,95,202.36 |
| 8 | 13,95,202.36 | 1,50,000 | 7.1 | 110,032.37 | 16,55,234.73 |
| 9 | 16,55,234.73 | 1,50,000 | 7.1 | 128,457.66 | 19,33,692.39 |
| 10 | 19,33,692.39 | 1,50,000 | 7.1 | 148,087.16 | 22,31,779.55 |
| 11 | 22,31,779.55 | 1,50,000 | 7.1 | 168,970.35 | 25,50,759.90 |
| 12 | 25,50,759.90 | 1,50,000 | 7.1 | 191,157.95 | 28,91,917.85 |
| 13 | 28,91,917.85 | 1,50,000 | 7.1 | 214,701.17 | 32,56,619.02 |
| 14 | 32,56,619.02 | 1,50,000 | 7.1 | 239,652.95 | 36,46,271.97 |
| 15 | 36,46,271.97 | 1,50,000 | 7.1 | 266,066.31 | 40,62,338.28 |
Total Investment: ₹22,50,000 (₹1,50,000 x 15 years)
Total Interest Earned: ₹18,12,338.28
Maturity Amount: ₹40,62,338.28
Frequently Asked Questions (FAQs) around PPF
Here are some common questions about PPF and its calculator:
Can I invest more than ₹1.5 lakh in PPF in a financial year?
No, the maximum investment limit for PPF in a financial year is ₹1.5 lakh (₹150,000). Any amount deposited above this limit will not earn interest and will not be eligible for tax benefits.
What is the lock-in period for PPF?
The PPF account has a mandatory lock-in period of 15 years. After 15 years, you can withdraw the full amount or extend the account in blocks of 5 years.
Can I make partial withdrawals from my PPF account?
Yes, partial withdrawals are allowed from the 7th financial year from the year of account opening. The withdrawal amount is subject to certain limits (e.g., 50% of the balance at the end of the 4th preceding year or the end of the preceding year, whichever is lower).
Is the interest earned on PPF taxable?
No, the interest earned on PPF is completely tax-exempt under Section 10(11) of the Income Tax Act. The investment and maturity proceeds are also tax-exempt, making it an EEE (Exempt-Exempt-Exempt) instrument.
How often does the PPF interest rate change?
The PPF interest rate is reviewed and revised by the Government of India on a quarterly basis.
Can NRIs open a PPF account?
No, Non-Resident Indians (NRIs) cannot open a new PPF account. However, if an Indian resident opens a PPF account and subsequently becomes an NRI, they can continue to hold the account till maturity but cannot extend it further.
Disclaimer: The above content is for informational purposes only and is not meant to be taken as investment, financial, or any other kind of advice. This is not a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments.
