About PPF Calculator

What is PPF?

Public Provident Fund (PPF) is a long-term savings scheme backed by the Government of India. It offers a secure investment option with tax benefits under Section 80C of the Income Tax Act and provides tax-free returns upon maturity.

How to Use This Calculator

1. Enter Yearly Investment: Input your planned annual investment (₹500 to ₹1,50,000 per year)

2. Interest Rate: Currently fixed at 7.1% (this rate is set by the government and reviewed quarterly)

3. Investment Duration: Choose between 15 to 30 years (15 years is the minimum lock-in period)

Calculator Features

• Invested Amount: Shows your total contribution over the selected period

• Total Interest: Displays the interest earned on your investment

• Maturity Amount: Indicates the final amount you'll receive at maturity

• Visual Representations:
  • Pie Chart: Shows the breakdown between your investment and earned interest
  • Line Graph: Illustrates the growth of your investment over time

Key Benefits of PPF

• Government Backed: Completely secure as it's backed by the Government of India

• Tax Benefits:
  • Investment qualifies for tax deduction under Section 80C (up to ₹1.5 lakh)
  • Interest earned and maturity amount are tax-free

• Compound Interest: Interest is compounded annually

• Loan Facility: Loan facility available from 3rd to 6th year

• Partial Withdrawal: Allowed from the 7th year onwards

Important Notes

• Minimum yearly deposit: ₹500

• Maximum yearly deposit: ₹1,50,000

• Interest is calculated on the lowest balance between the 5th and last day of each month

• Account matures after 15 years but can be extended in blocks of 5 years

• Deposits can be made in lump sum or up to 12 instalments per year

Investment Tips

• Regular Investments: Make regular contributions to maximize the power of compound interest

• Timing: Deposit before the 5th of each month to earn interest for that month

• Long-term Planning: Consider PPF as a long-term retirement planning tool

• Tax Planning: Utilize PPF as part of your tax-saving investment portfolio

Formula Used

The calculator uses the following compound interest formula for PPF:

Maturity Amount = Yearly Investment × [((1 + r)^t - 1) / r] × (1 + r)

Where:
r = Interest rate (in decimal)
t = Duration in years

You May Check Also :

• Days Calculator
• Gratuity Calculator
• Bonus Calculator