One-time
Monthly SIP
60,00,000
2
yrs
5.6
%
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CUSTOM CSS
Principal amount
60,00,000
Interest amount
60,00,000
Total interest will be
60,00,000

Thinking about securing your future or your child’s? A Public Provident Fund (PPF) is a smart choice. Before diving in, it’s wise to estimate your returns with a PPF calculator. This guide will show you how to use this tool effectively for your financial planning.

Why Choose PPF for Saving?


PPF is a popular savings scheme in India, known for its safety and attractive returns. It's especially suitable for long-term financial goals due to its fixed tenure of 15 years. The interest rates are typically higher than other saving options offered by banks or non-banking financial companies (NBFCs). You can contribute regularly according to your financial capacity and enjoy substantial returns at the end of the tenure.

What is a PPF Calculator?

A PPF calculator is an online tool that estimates the growth of your investment in a PPF over a specific period. It's a great aid in planning for goals like retirement, considering the mandatory 15-year lock-in period of PPFs. The calculator uses your annual contributions, the current PPF interest rate, and the investment period to estimate the maturity value.

How Does the PPF Calculator Work?


The calculator uses a formula that factors in your annual contributions and the prevailing interest rate. Here’s the formula:

M = P [ ( { (1 + t) ^ n } - 1 ) / i ]

Where,
M = Maturity Value
P = Annual Contribution
i = Interest Rate
n = Number of Years

Steps to Use a PPF Calculator

  • Enter Annual Investment: Input your yearly contribution to the PPF account.
  • Select Investment Period: Choose the number of years you plan to invest.
  • Current Interest Rate: This is usually set by default in the calculator.
  • Calculate: The tool will automatically provide the estimated maturity value.
Benefits of Using a PPF Calculator
  • Unlimited, Free Access: Use the calculator multiple times without any cost.
  • Error-Free Calculations: Get accurate results without manual errors.
  • Time-Saving: Instantly calculates complex formulas, saving you valuable time.
  • Tax Planning Aid: Helps in planning tax deductions under Section 80C.

Conclusion

Investing in a PPF is a wise decision for long-term financial stability. Use a PPF calculator to make informed decisions about your investments and tax planning. It's a simple, efficient way to ensure your savings are aligned with your future financial needs.

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Frequently Asked Questions

How often does the PPF interest rate change?

The interest rate for PPF accounts is reviewed and possibly revised by the government every quarter.

What are the advantages of a PPF over other savings schemes?

PPF offers tax-free interest and maturity benefits, a higher interest rate than most savings accounts, and tax deductions under Section 80C. It’s also backed by the government, making it a safe investment.

Are returns from PPF entirely tax-free?

Yes, the returns from PPF, which include the interest earned, are exempt from tax under the Income Tax Act.

Can NRIs open or continue PPF accounts?

Non-Resident Indians (NRIs) cannot open new PPF accounts. However, those who had PPF accounts before becoming NRIs can continue them until the maturity period.
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