The Public Provident Fund (PPF) is a voluntary long-term savings scheme offered by the government of India. It is a secure investment option that offers tax benefits under section 80C of the Income Tax Act, 1961. You can open a PPF account with a bank or a post office in India. However, before you do so, you need to get a clear idea of how your investment could potentially grow over the investment tenure of 15 years. A PPF calculator can help you assess this maturity amount.
PPF Calculator
Yearly Investment (₹)
Monthly Amount you
are
planning to invest
Rate of Interest (% p.a.)
Annual returns
that
you
are expecting on your
investments. Depends on the category
of
mutual fund
you are investing in. E.g. You can
expect 17%-18%
returns on Small Cap funds, 15%-16%
returns on Mid Cap
funds and 12%-15% returns on Large
Cap
funds in the
long run
Investment Period (In years)
Higher the number
of
years you invest, higher the
profits you can generate from
Compounding effect
Maturity value
₹2,71,214
Invested Amount
₹1,50,000
Interest Earned
₹1,21,214
A PPF calculator is a free financial planning tool available online. It helps you evaluate the amount that you could receive from your PPF investments at maturity. To find this amount, the PPF returns calculator takes a few key parameters into account, like your total annual investment, the PPF interest rate and the investment duration. The PPF investment tenure is 15 years, but you can extend it further by blocks of five years indefinitely.
With these details, the Public Provident Fund calculator computes the total interest you will earn on your investments as well as the total maturity amount. You can change the parameters to understand how the maturity amount will vary as the investment amount and investment tenure varies. Using the personal loan EMI calculator can give you a better idea of your potential financial obligations if you avail of this type of loan. This, in turn, can help you figure out how much you can borrow without straining your finances.
A personal loan EMI calculator works on the simple principle of using your inputs to compute the required results. It uses the three details outlined below:
Furthermore, with a PPF calculator, you can also see how different investment amounts and tenures could affect the maturity value. This will help you determine the ideal amount to invest each year to potentially obtain the corpus you require.
To find the maturity amount of your PPF investments, a Public Provident Fund calculator uses the following formula:
M = P[{(1 + i)n — 1} ÷ i ]
Here,
M is the maturity amount of your PPF investments
P is the amount invested in your PPF account annually
i is the rate of interest per annum on the PPF investments
n is the tenure of investment in years
The Public Provident Fund calculator is a much easier alternative to using manual calculations to compute how your PPF investments grow over time. To better understand how complex the computation can be, let us consider a hypothetical investment scenario where you invest Rs. 1,50,000 annually in your PPF account for 15 years. The interest rate may vary over the investment tenure. However, let us assume an interest rate of 7.1% per annum over the 15 years. The table below shows you what the manual calculation of the PPF interest and maturity amount will look like
| Year | Opening Balance | Amount Deposited | Interest Earned | Closing Balance |
|---|---|---|---|---|
| 1 | Nil | Rs. 1,50,000 | Rs. 10,650.00 | Rs. 1,60,650.00 |
| 2 | Rs. 1,60,650.00 | Rs. 1,50,000 | Rs. 22,056.15 | Rs. 3,32,706.15 |
| 3 | Rs. 3,32,706.15 | Rs. 1,50,000 | Rs. 34,272.14 | Rs. 5,16,978.29 |
| 4 | Rs. 5,16,978.29 | Rs. 1,50,000 | Rs. 47,355.46 | Rs. 7,14,333.75 |
| 5 | Rs. 7,14,333.75 | Rs. 1,50,000 | Rs. 61,367.70 | Rs. 9,25,701.44 |
| 6 | Rs. 9,25,701.44 | Rs. 1,50,000 | Rs. 76,374.80 | Rs. 11,52,076.24 |
| 7 | Rs. 11,52,076.24 | Rs. 1,50,000 | Rs. 92,447.41 | Rs. 13,94,523.66 |
| 8 | Rs. 13,94,523.66 | Rs. 1,50,000 | Rs. 1,09,661.18 | Rs. 16,54,184.84 |
| 9 | Rs. 16,54,184.84 | Rs. 1,50,000 | Rs. 1,28,097.12 | Rs. 19,32,281.96 |
| 10 | Rs. 19,32,281.96 | Rs. 1,50,000 | Rs. 1,47,842.02 | Rs. 22,30,123.98 |
| 11 | Rs. 22,30,123.98 | Rs. 1,50,000 | Rs. 1,68,988.80 | Rs. 25,49,112.78 |
| 12 | Rs. 25,49,112.78 | Rs. 1,50,000 | Rs. 1,91,637.01 | Rs. 28,90,749.79 |
| 13 | Rs. 28,90,749.79 | Rs. 1,50,000 | Rs. 2,15,893.23 | Rs. 32,56,643.02 |
| 14 | Rs. 32,56,643.02 | Rs. 1,50,000 | Rs. 2,41,871.65 | Rs. 36,48,514.68 |
| 15 | Rs. 36,48,514.68 | Rs. 1,50,000 | Rs. 2,69,694.54 | Rs. 40,68,209.22 |
Making manual calculations as shown above can be tedious, time-consuming and prone to errors. To avoid this, you can use a PPF calculator and find the maturity amount easily and without any errors.
It is quick and easy to use the PPF returns calculator available on the Research 360 platform powered by Motilal Oswal. All you need to do is follow the steps outlined below:
The PPF account calculator then automatically uses the prevailing PPF interest rate along with the details you submitted to compute the maturity amount and the interest earned. These details are displayed online instantly. You can change the input details to verify how variations in the investment amount and investment tenure affect the maturity value. This is why the PPF account calculator is very useful in financial planning.
A PPF calculator can be useful to you in several ways. Here are the top advantages of this free online financial planning tool.
A PPF calculator provides precise calculations of how your investment may grow over time. It eliminates the risk of human error in complex compound interest calculations and gives you a reliable estimate of your maturity amount.
Manual calculations of PPF returns over 15 years can be extremely time-consuming and tedious. A PPF returns calculator instantly computes the results and saves you hours of work. This efficiency helps you analyse the results and make smart investment decisions.
With a PPF calculator, you can easily adjust variables like annual investment amount and tenure to see how they affect your returns. It is also available free of cost, so you can even use the PPF calculator monthly or yearly to check how different investment scenarios work.
The calculator simplifies financial planning with clear projections of your PPF investment's growth. It helps you assess if your PPF investment alone will be enough for your future needs or if you should consider additional investments to reach your financial targets.
A PPF calculator helps you understand how compound interest works over long periods. This knowledge can motivate you to invest more or start investing earlier, as you can better understand the significant impact of time and consistency on your wealth accumulation.
The rate of interest on PPF accounts may be revised by the Indian government periodically. Currently, as of August 2024, the PPF interest rate is 7.1% per annum.
PPFC calculator is the process of computing the amount you will receive from your PPF account at maturity. It will help you understand the amount of interest earned as well as the final value of your investments.
PPF or Public Provident Fund is a government-backed savings scheme in India. It is a voluntary scheme, so you can choose to invest in PPF if you want to diligently save for your future. You earn compound interest on the amount deposited in your PPF account. The scheme has an investment tenure of 15 years and can be extended by blocks of five years.
Yes, the PPF scheme is one of the many government-backed long-term savings plans in India. So, it is generally considered to be a safe investment option, particularly for investors who wish to preserve their capital and earn compound interest on their investments.
The Public Provident Fund scheme has a maturity period of 15 years. However, you can make partial withdrawals once each financial year after five years (excluding the year of opening the account).
The interest on your PPF account balance is credited annually. However, it is not paid out to the account holder.
While PPF investments are generally beneficial for investors seeking low-risk options, it has certain limitations — such as a long maturity period and limited potential to create wealth.
