PPF Calculator

What do you mean by Public Provident Fund?

Public Provident Fund, abbreviated as PPF. It is a savings and investment option launched by the Government of India. PPF offers low-risk and consistent return investment options to the general public. PPF has a minimum lock-in period of 15 years. One can increase it if they want to after the completion of the maturity period.

PPF was first launched in 1968 by the National Savings Institute of the Ministry of Finance. The main reason behind starting the PPF scheme was to channelise the small savings of the Indian households. So, they could earn extra returns & the Government could use these funds more productively.

The minimum deposit amount required to start a PPF account is Rs. 500 yearly & the maximum limit is Rs. 1,50,000 in one year. The interest rates of the PPF scheme are revised every three months by the government of India. The maximum interest offered till date was 12% p.a. from 1986 to 2000. The current interest rate offered by the government is 7.1% p.a.

In case of a financial emergency, PPF also offers the option of partial withdrawals. With the start of the 7th financial year of the investment, an individual is eligible to withdraw an amount up to the limit of 50% of the funds present in his PPF account.

If you are looking forward to opening a PPF account, government banks, and private banks authorised by the Central Government & post offices provide the account opening facility for the PPF scheme. You have to visit your nearest branch, fill out the application form and deposit the required documents with the initial deposit amount.

Some other Important Features of a Public Provident Fund:

Public Provident Fund	Details
Lock-in period	15 years
Early closure	1% penalty
Taxability	Interest earned is not taxable
Interest offered	7.1% as of September 1, 2023

A fun fact to know is that.

Earlier, the PPF was called “National Savings Certificate (VIII Issue)”, but the Government later changed its name to the Public Provident Fund.

What is a PPF Calculator?

A PPF calculator or a Public Provident Fund calculator is a mathematical financial utility tool that helps you calculate the future value of your PPF investment.

Pocketful’s online PPF calculators offer a beginner-friendly interface that even a 5-year-old can use easily.

You are required to enter details such as the yearly investment amount, period and interest rate

In our PPF calculator, you might have noticed there is no column for you to enter the interest rate. The interest rate is revised every three months by the Govt., and our calculator automatically updates it with the market dynamics.

Why is the PPF Calculator Necessary & How can it help you?

Doing mathematical calculations is not a cakewalk for everyone. And computing the value of your investment with such tricky formulas can be a hectic task using a traditional calculator.

That’s where our PPF account calculator comes to your rescue. Using Pocketful’s PPF investment calculator, you can know the maturity amount of your investment in a matter of a few seconds.

Various advantages of using a PPF Calculator, are listed below-

• Estimated returns:The PPF calculator helps you to know the estimated returns of your investment at the time of maturity. Remember that the amount calculated by the calculator may vary with the actual amount that you may receive depending upon the additional charges levied.
• Easy Comparison:Using an online investment calculator helps to compare different investment options with each other. So you can invest in the best-suited option according to your risk appetite.
• Track your growth:You can keep track of your investment using the PPF interest rate calculator. You can see how your investment is growing.
• Easy to use:Online calculators are easy to use. As they offer a very user-friendly interface. That makes it very interactive to use.
• Cost-effective:All the online investment calculators are free. That makes them very cost-effective. Otherwise, earlier, these calculations were done by financial advisors who charged hefty consulting fees.

How Does the PPF Calculator Work?

Every online PPF investment calculator works using the same basic formula.

The formula for the PPF calculator is given below-

A=P*((1+I )N-1)/I

A	Maturity amount
P	Annual investment amount
N	Investment tenure in years
I	Interest rate

Let’s try to understand-

The working of the PPF calculator based on this example.

Suppose Mr Dhruv wants to start his investing journey for which he decides to open a PPF account.

Mr Dhruv can easily invest up to rupees 1,50,000, annually but does not want to bear any risk.

Now, he wants to know the maturity amount of his investment after 15 years, which he can easily find out just by using the calculator and voila! In less than a second, you know that the Future Value of Mr. Dhruv’s investment will be Rs. 40,68,209.

Benefits of a PPF Account in Saving Tax

PPF falls under the EEE (exempt, exempt, exempt) investment category. According to this, all the gains under the PPF scheme are free from any tax.

According to the Section 80C of the Income Tax, the PPF account holder is not liable to pay any kind of tax on the interest income at maturity.