Public Provident Fund Calculator

The PPF calculator is a financial tool, it helps in calculating the investment value of your provident fund over a certain period. PPF is basically a public provident fund scheme that are offering several benefits. It’s a long-term investment option that comes with a lock-in period of 15 years. PPF is one of the best schemes to generate a better ROI. It is also known as a tax-saving scheme. However, the yearly contribution of the PPF account is capped at Rs 1.5 lakh.

When you use a PPF calculator online, the calculator will simply apply the PPF calculation formula to calculate the investment return in terms of interest after a certain number of years. It is one of the best ways to adopt a disciplined approach to building a strong retirement corpus.

How does PPF Calculator work?

To get accurate results in the PPF calculator, you need two inputs from you. You need to input the annual contributions you expect to make over the next certain number of years, and the number of years for which you will continue contributing. While using the PPF calculator, you need to remember that interest rate never remains certain, it changes each quarter, so the calculations also change quarterly.

Here's the formula to calculate the Public Provident Fund :

Following is the PPF calculation formula that a PPF return calculator uses:

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


M is Maturity Value

P is Annual Payments

NNumber of years

i Interest Rate

For example : The annual contribution is Rs 1 Lakh Interest Rate- 7%

M = ₹ 1 lakh [ ({ (1 + 7%) ^ 15 } - 1 ) / 7% ] x (1 + 0.07)
M = ₹ 27, 12, 139

Benefits of using PPF Calculator

  • Calculating PPF return becomes easier, to fulfill your financial goals, calculating returns becomes easier, all you need to do is tweak the inputs.
  • Saves time and effort, as within seconds you get to know how your annual contributions impact the final value., saves time and efforts, as within seconds you get to know that how your annual contributions impact the final value.,
  • With the help of the PPF Calculator, you can plan your taxes because once you are aware of how much investment is required to claim tax exemptions under Section 80C of the Income Tax Act, 1961, tax planning becomes easier.
  • Overall, PPF is a simple investment option that helps individuals in building a retirement corpus backed by the government. One of the safest investment schemes, a tax-efficient way to invest over the long term.
  • Since you’ll make multiple contributions to a PPF account, it may be a little challenging to calculate the maturity value manually, even if you know the formula. Therefore, using a PPF calculator online can be helpful and make the calculations a lot easier for you.

Frequently Asked Questions

  • Where one can open a PPF account
    All nationalized bank and private banks offer you a facility to open a PPF account. It can be linked to your saving account. For opening a PPF account, you must be having a valid KYC document.
  • What is the interest rate of PPF account
    The PPF interest rate in India usually varies between 7-8%. Online you can check the present PPF interest rate, it is available at every financial institution website.
  • Which amount is considered for calculating PPF interest rate?
    The PPF account interest rate is calculated on the lowest balance in the account between the closing balance reflected into your PPF account on the 5th day of the month.
  • What is the lock-in period of PPF?
    The lock-in period of PPF is 15 years. The partial withdrawal of PPF account is allowed after 7th year of the PPF account.
  • Are PPF investments are tax-free?
    Yes, PPF investments are tax-free as per Section 80C of Income Tax Act, 1961, the interest earned, and maturity amount all are tax-free.