PPF Calculator Online

A PPF calculator is a simple online tool that helps you compute how your investment in the Public Provident Fund (PPF) will grow over a given period of time. It shows you the total interest or returns that you will earn on the amount invested in your PPF account. 

The Public Provident Fund or PPF scheme is an initiative launched by the government of India to promote long-term savings and investments among the Indian population. Here are some of the key features of the Public Provident Fund investment scheme. 

• You can open your account with just ₹100.

• You need to invest at least ₹500 each year to keep your account active.

• The maximum investment amount permitted each year is ₹1,50,000.

• You can make up to 12 deposits during the year.

• The current rate of interest on PPF deposits (as of October 2022) is 7.10% per annum.

So, as you can see from the features outlined above, you can invest a lump sum amount or make deposits in instalments in your PPF account each year, for a period of 15 years. Over this period, you will earn interest on your investments at the rate fixed by the government of India. At the end of the investment tenor, you can withdraw your corpus along with the interest generated on the deposited amount. 

A PPF interest calculator helps you figure out how much interest you will earn on the capital invested. Using this online tool, you can plan your PPF investment smartly, since you will have a better idea of how much your corpus will grow over the investment tenor. 

To use a PPF calculator, here is what you need to do:

• Step 1: Enter the amount that you plan to deposit periodically into your PPF account.

• Step 2: Choose the frequency of investment, which can be monthly, quarterly or annually.

• Step 3: Enter the rate of interest applicable on your PPF investments. This might also be available by default in some PPF  maturity calculators. 

• Step 4: Submit these details and check out the interest and the maturity amount that the PPF interest calculator will display on the screen. 

The investment tenor for the Public Provident Fund scheme is 15 years. However, after the 15-year period is complete, you can extend your investments by blocks of 5 years. The returns you earn on your investments will depend on the investment tenor. 

Here is a preview of the maturity amount calculations for different investment periods. The following particulars have been considered for this example.

• You invest ₹1 Lakh each year in your PPF account.

• The rate of interest is 7.10% per annum.

In that case, here is how your investment will grow across different investment periods. 

As you can see, thanks to the power of compounding, you can grow your corpus to over ₹1 Crore by simply investing just ₹1 Lakh a year for 30 years. 

If you saw the above table and were wondering about how the interest and the maturity amounts were computed, here is the formula that is used to arrive at these numbers. 

A = P [({(1+i)n}-1) ÷ i

Here, the alphabets stand for the following metrics:

• A is the maturity amount at the end of the period being used for the calculation

• P is the amount invested in the PPF account

• i is the rate of return/interest on the PPF scheme prevailing at the time

• n is the investment tenor being considered for the calculation

As you can see, this can be quite a complex formula to use manually each time you want to compute the maturity amount due from your PPF account or the interest you will earn on your PPF deposits. Not only is it cumbersome, but it may also lead to many errors if you perform the calculations manually. 

This is why it is advisable to make use of a PPF calculator if you want to check the returns your Public Provident Fund account will offer you. So, if you are in the process of planning your long-term investments, consider using this efficient online tool for better results.