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PPF Calculator

Explore and estimate the potential accumulation in your Public Provident Fund (PPF) account using our PPF return calculator.

Principal Amount:

Total Interest:

Maturity Value:

*Investing in the securities market carries risk. Please do your own due diligence before investing.

What is PPF Calculator?

Introduced in India in 1968, the Public Provident Fund (PPF) serves as a means to encourage small savings and offers returns on investments. It continues to be a preferred choice for numerous investors due to its tax-free returns, making it a dual-purpose avenue for savings and tax benefits. Often referred to as a savings-cum-tax-saving investment, a PPF account facilitates the creation of a retirement fund while providing tax advantages. Hence, individuals seeking a secure investment option for tax savings and assured returns should consider opening a PPF account.

How does PPF Calculator work?

Easily calculate your PPF interest and estimate the maturity amount for a specific tenure using convenient online PPF calculators. These tools are readily available, free, and user-friendly.

PPF interest is computed using a straightforward formula:

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

Where:

  • F: represents the maturity amount
  • P: is the annual instalment paid
  • n: stands for the tenure in years
  • i: denotes the interest rate

By inputting your investment amount and tenure into a PPF calculator, you can swiftly obtain an accurate estimate of your maturity amount. Remember that PPF interest compounds annually.

In addition to being easy to use, PPF calculators offer precise results. They consider the prevailing PPF interest rates for the specific financial year to generate accurate calculations.

Here's an example illustrating how a PPF calculator functions:

Imagine an individual invests an annual amount of ₹1,50,000 in their PPF account for a duration of 15 years, with an interest rate of 7.1%. Using the correct formula:

F = 1,50,000[ {(1+0.71)15-1 }/0.71] where,

Hence, the maturity sum at the end of 15 years would be approximately ₹40,68,209, accurately calculated using the PPF interest formula.

Utilizing a PPF calculator for return estimation proves immensely beneficial during investment planning:

Clarity on Returns: Gain insights into expected returns based on your investment amount, providing a clear understanding of the account workings.

Iterative Planning: Experiment with different investment amounts until you reach a balance between investment and desired returns.

3. Error-Free Automation: Skip manual calculations and potential errors, ensuring accurate results every time.

4. Effective Tax Planning: Leverage the calculator for tax planning purposes, optimizing your investment strategy within the framework of tax regulations.

5. Extended Planning: Project wealth growth beyond the lock-in period, aiding retirement planning and wealth accumulation projections.

Tax benefits associated with PPF, as per the Income Tax Act 1961, include:

  • Deductions under section 80C, allowing a maximum deduction of ₹1,50,000 annually, inclusive of all eligible investments.
  • Tax exemption on PPF interests and proceeds, exempting them from wealth tax as well.

These advantages make PPF calculators indispensable tools for informed and optimized investment decisions.

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