Yearly Investment

₹ 500

₹ 1,50,000

Time Period (in years)

15 yr

50 yrs

Current Rate of Interest

The initial step toward wealth generation is accumulating savings. The options for savings accounts are numerous. however, look for those that promise substantial returns without risk. PPF accounts are one of the most common features which come into the picture. PPF account refers to a Public Provident fund account and is meant to invest your valuable capital.

If you are a new employee or who wishes to save for the future, then PPF is ideal for you. Calculating the interest rates and returns on your PPF account turns a bit difficult. To make these difficult calculations easy, PPF account calculator can be used.

Public Provident Fund ( PPF ), was introduced in India in 1968 with the objective to mobilize small savings in the form of investment, coupled with a return on it. It still remains a favorite savings avenue for many investors as the returns are tax-free. It can also be called a savings-cum-tax savings investment vehicle that enables one to build a retirement corpus while saving on annual taxes. Therefore, anyone looking for a safe investment option to save taxes and earn guaranteed returns should open a PPF account.

An individual can easily calculate his/her PPF interest and thus, the maturity amount for a particular tenure with the help of the online PPF calculators. A number of Public Provident Fund calculators are available online and can be used for this purpose. They are free of cost and very easy to use.

The interest in PPF is calculated using a very simple formula. The formula can be expressed as follows:

F = P[{(1+i)n-1}/i]

where,

1. 'F' stands for the maturity amount of the PPF

2. 'P' stands for the annual installments paid

3. 'n' stands for the number of years or tenure of the PPF

4. 'i' stands for the rate of interest.

However, in case you use a PPF calculator to calculate the same, you can feed the details with respect to the investment amount and tenure of the PPF and know the estimated amount very easily. It should be noted that the interest on PPF is compounded on a yearly basis.

Apart from the PPF calculator being an easy tool to use, it also provides accurate details. There are various PPF calculators available online. Depending on the PPF interest rate for the financial year, calculations are made. Given below is an example of how the PPF calculator works:

Assumptions are Investment per year is Rs.1 lakh and the Rate of interest is 7.1%

Using a PPF calculator to estimate the returns can be a big help when you are planning your investments:

1. The calculator resolves your many questions on how the account works. You can have a clear picture of how much returns you can expect on investing a certain amount.

2. You can use the calculator over and over again until you strike a balance between how much you must invest to get the desired returns.

3. Since this is automated, manual calculations can be skipped and errors can be avoided.

4. You can make use of the calculator at the tax-planning stage so you can plan your investments better.

5. You can extend the PPF account over and above the lock-in period, so you can figure out how much time you have for retirement and how much wealth you can grow up to that point.

If you have a PPF account, you would be interested to know how much principal and interest has accrued after a certain number of years.

previously, the calculation used to be complicated, and you would need an accountant to show you the figures.

The PPF calculator does the work of several calculations in an instant. fluctuating interest rates, which are revised every three months, are considered. it does the computation based on the information you provide.

The time of the year you invest is also critical. the interest for the financial year is calculated on the amount invested before the 5th of each month.

If deposits are made after the 5th, the interest will be less, and the calculator will compute accordingly.

The PPF amount calculated using the PPF return calculator has the following tax benefits as per its, act 1961 -

1. You can claim deductions under section 80c of it act 1961, for the PPF deposits. under 80c, ₹ 1,50,000 is the maximum allowed deduction one can claim per year; provided all investments are inclusive of such claims.

2. Apart from 80c, PPF interests are also tax-free. even PPF proceeds and accounts are not applicable to wealth tax.