PPF Calculator – Public Provident Fund Interest Calculator

What is the PPF Calculator?

The PPF calculator is an online tool that can help you calculate the potential maturity amount and interest earned on your Public Provident Fund Account (PPF account).

The Public Provident Fund is a popular long-term investment scheme backed by the Government of India for a lock-in period of 15 years. It offers a fixed interest rate of 7.1% p.a. on your deposited money at present. The PPF scheme also provides tax benefits under Section 80C and Section 10 of the Income Tax  Act of 1961.

A PPF calculator takes into account the following factors:

• Contribution amount

• Investment duration

• Prevailing interest rate

The calculator provides an estimated projection of the maturity amount and total earned interest from your investment.

Dive deeper into your finances with the SIP Calculator.

How Can a PPF Calculator Help You?

A PPF calculator is a valuable tool that can assist you in planning your investments and estimating the potential returns on your PPF account contributions. 

• It helps you calculate the maturity amount, interest earned, and the duration required to reach your desired goal. 

• Using a PPF calculator, you can make informed decisions about how much to invest and for how long based on your financial objectives.

• This calculator allows you to track your capital growth and stay updated on monthly interest rate fluctuation.

How is the PPF Interest Calculated?

The PPF interest rate calculation formula takes into account the principal amount, the interest rate, and the investment duration of your contributions in the PPF account. The interest on PPF is compounded annually and is credited to the account at the end of each financial year.

The formula used in a PPF account calculator is as follows:

A = P * [(1 + r/n)^(n*t) - 1]

The formula represents the following variables:

• A=  Maturity amount

• P= Principal amount

• R= Annual interest rate

• N= Number of times that interest is compounded per year

• T= Number of years

Illustration of a PPF Account Interest Rate Calculation

Let us say you deposit in a PPF account as per the following details:

• Contributions in PPF Account: Rs. 1 lakh

•  Annual interest rate (r): 7.1% (as of the last available data)

• Compounded annually (n): 1

• Investment period (t): 5 years

Calculation:

Using the formula mentioned earlier: A = P * [(1 + r/n)^(n*t) - 1]

A = 1,00,000 * [(1 + 0.071/1)^(1*5) - 1]

A = Rs. 40911.7972634

So, after 5 years, your PPF account will have approximately Rs. 140,911.79. This is the total maturity amount, which includes the principal (initial deposit) and the interest earned on it.

How to Use the Policybazaar PPF Calculator?

You can follow the steps mentioned below to use a PPF calculator in India:

Step 1: Open the online Policybazaar PPF Account Interest Rate Calculator.

Step 2: Enter the following details in the calculator:

• Monthly/ Lump Sum Investment

• Prevailing PPF Interest Rate

• Investment Tenure (number of years you intend to keep the money invested in the PPF account)

Step 3: Once you have provided the necessary details, the PPF calculator will display the following details:

• Estimated Maturity Amount

• Total Invested Amount

• Total Interest Earned

What are the Benefits of Using the PPF Calculator?

A PPF return calculator in India offers you several benefits. Some of them are as follows:

• Accuracy: Ensures precise calculations of PPF investments, interest, and maturity amounts.

• Time-saving: Quickly determines future values with the reduction of manual calculations.

• Financial Planning: Helps in setting realistic savings goals and long-term financial planning.

• Tax Efficiency: Using this calculator can help you to avoid paying high taxes on your income.

• Flexibility: Allows you to experiment with different deposit amounts and tenures to optimize returns.

• Transparency: Provides a clear picture of the potential growth of your PPF account over time.

• Informed Decision Making: Enables informed decisions regarding PPF contributions and withdrawals.

In Conclusion

A PPF calculator is an invaluable tool for individuals in India looking to make informed decisions about their PPF investments. By utilizing this calculator, you can accurately plan your finances, estimate potential returns, and make sound investment choices aligned with your financial goals.