Retirement planning is one of the key elements of financial planning these days. Everybody wishes to have enough money at their disposal so that they can enjoy retirement without any financial worries. The best way to plan financially for retirement is by investing money regularly in an investment instrument that offers generous return and is also risk-free. Public Provident Fund or PPF is one such investment option that fits the desired category and is considered as an ideal retirement savings plan by many.

PPF allows individuals to invest periodically in their PPF account. The scheme offers a fixed rate of interest and brings tax benefits as well. Calculating returns from PPF investments beforehand is necessary as it helps you to estimate how your investment approach will be based on your retirement plans. Such calculations can be tricky and time-consuming, hence, doing manual calculations will not be a wise thing to do. A PPF calculator solves the problem of calculating interest from the PPF account and enables you to estimate the corpus at the time of maturity.

**What is a PPF Calculator?**

The PPF Calculator is a valuable tool for anyone looking to invest in the Public Provident Fund scheme. This calculator helps investors estimate the returns they can expect over the tenure of their PPF investment. Whether you are planning to invest in a PPF account with SBI, HDFC, a post office, or any other authorized bank, this calculator will assist you in making informed decisions.

How to Calculate Public Provident Fund Returns?

The returns from PPF depend on the amount of contribution you make, the time period of investment, and the offered PPF account interest rate. The formula for calculating returns from PPF investment is as follows:

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

Where,

- F = Final value of the maturity
- P = Value of annual investments
- n = Number of years of investment, i.e. PPF maturity period
- i = Offered PPF rate of interest

**Let us understand this with an example:**

Suppose you wish to invest Rs 2 lakhs every year in your PPF account for 20 years, and the rate of interest is 7.1%.

Upon investing Rs 2 lakhs every year in your PPF account for 20 years at an interest rate of 7.1%, the calculations are as follows:

**Total Corpus at Maturity**: Rs 82,89,185**Total Investment**: Rs 40,00,000**Total Interest Earned**: Rs 42,89,185

A quick check on opening balance, closing balance and also rate of interest will definitely help you out. Have a look at the given below table.

Year | Opening Amount | Deposit | Rate of Interest (%) | Closing Amount |
---|---|---|---|---|

1 | 0 | 200,000 | 7.1 | 200,000 |

2 | 200,000 | 200,000 | 7.1 | 414,200 |

3 | 414,200 | 200,000 | 7.1 | 643,608 |

4 | 643,608 | 200,000 | 7.1 | 889,304 |

5 | 889,304 | 200,000 | 7.1 | 1,152,445 |

6 | 1,152,445 | 200,000 | 7.1 | 1,434,269 |

7 | 1,434,269 | 200,000 | 7.1 | 1,736,102 |

8 | 1,736,102 | 200,000 | 7.1 | 2,059,365 |

9 | 2,059,365 | 200,000 | 7.1 | 2,405,580 |

10 | 2,405,580 | 200,000 | 7.1 | 2,776,376 |

11 | 2,776,376 | 200,000 | 7.1 | 3,173,499 |

12 | 3,173,499 | 200,000 | 7.1 | 3,598,817 |

13 | 3,598,817 | 200,000 | 7.1 | 4,054,333 |

14 | 4,054,333 | 200,000 | 7.1 | 4,542,191 |

15 | 4,542,191 | 200,000 | 7.1 | 5,064,686 |

16 | 5,064,686 | 200,000 | 7.1 | 5,624,279 |

17 | 5,624,279 | 200,000 | 7.1 | 6,223,603 |

18 | 6,223,603 | 200,000 | 7.1 | 6,865,479 |

19 | 6,865,479 | 200,000 | 7.1 | 7,552,928 |

20 | 7,552,928 | 200,000 | 7.1 | 8,289,185 |

## What is the PPF Calculator?

PPF interest rate calculator is a simple tool that saves you from doing math by calculating your PPF interest and maturity amount within a moment. It is an online calculator that comes with a straightforward and clear interface. You just need to fill in the following details and you are ready to go:

**Yearly investment:**The amount of money you are going to invest every year in your PPF account**Time period:**Time period of investment, i.e. number of years for maturity**Rate of interest:**Interest rate offered by the government. The current rate of interest offered on PPF investment is 7.1%

Based on the given figures, the PPF calculator 2022 will show you the following results

**Total invested amount: Total amount of money invested in the PPF account****Interest earned: Total amount interest earned until maturity****Maturity value: Final value of corpus built at the time of maturity**

You can change the values in the calculator and get results accordingly.

You can use the INDmoney PPF calculator to estimate the maturity value of your PPF investment effortlessly.

## How to Use INDmoney PPF Interest Calculator?

You can use the INDmoney PPF account calculator in just a couple of steps:

**Step 1:** Enter the Toal Investment Amount: This is the amount you plan to invest each year.**Step 2: **Select the Investment Tenure: PPF has a lock-in period of 15 years.**Step 3: **Enter the Interest Rate: The current PPF interest rate can be found on the official websites of banks or the post office.

All done! INDmoney PPF calculator will show you the total invested amount, returns, and the final maturity value instantly.

**How Does the PPF Calculator Help You?**

The PPF Calculator helps in:

- Estimating the maturity amount and interest earned over the investment period.
- Planning the amount to be invested annually to achieve a specific financial goal.
- Comparing different investment scenarios by adjusting the annual contribution and tenure.
- Making informed decisions by understanding the impact of different interest rates on the final corpus.

**Benefits of Using INDmoney PPF Calculator**

There are several benefits of using INDmoney PPF calculator online:

- Safe and Secure: PPF is a government-backed scheme, making it one of the safest investment options.
- Tax Benefits: Contributions to PPF are eligible for tax deductions under Section 80C of the Income Tax Act.
- Attractive Returns: PPF offers attractive interest rates which are compounded annually.
- Long-Term Savings: With a tenure of 15 years, PPF helps in building a substantial corpus for long-term financial goals.
- Loan Facility: Investors can avail of a loan against their PPF balance after the third financial year.
- INDmoney PPF calculator comes with an easy-to-use interface. The tool is completely free and does not require any signup.

**How to Open a PPF Account?**

Opening a PPF account is easy:

- Choose a Bank or Post Office: PPF accounts can be opened at designated banks and post offices.
- Fill the Application Form: Obtain and fill out the PPF account opening form.
- Submit KYC Documents: Provide necessary KYC documents like ID proof, address proof, and a passport-sized photograph.
- Initial Deposit: Make the initial deposit (minimum ₹500).
- Verification: After verification, your PPF account will be opened.

## Conclusion

Public Provident Fund or PPF is an ideal retirement savings instrument that helps you to build a huge corpus gradually over the long term. Using a PPF calculator, you can gauge returns and maturity amounts before making any investment at all. This enables you to do proper financial planning and start your PPF investment journey effectively.

## Frequently Asked Questions

#### What are the tax benefits offered on PPF?

PPF falls under the Exempt-Exempt-Exempt (EEE) category. This means that both the contributions made in PPF and the returns earned are tax exempted.

#### What is the maximum amount that I can contribute to a PPF account?

You can contribute up to Rs 1.5 lakh yearly in your PPF account.

#### Does PPF offer guaranteed returns?

Yes, the returns from PPF investment are guaranteed as the rate of interest offered in PPF is fixed. The current interest rate offered to PPF account holders is 7.1%.

#### Can I calculate PPF returns monthly?

Yes, you can calculate monthly returns from your PPF account using the PPF calculator monthly.

#### How to calculate 20 years maturity value in a PPF calculator?

The maturity tenure of PPF is 15 years, hence, you cannot make calculations for 20 years using a PPF calculator.

#### Is there any easy formula to calculate PPF returns?

The formula used to calculate PPF is F = P[{(1+i)n-1}/i], which is as complicated as the formula itself seems. Therefore, it is recommended that you use PPF calculator to calculate returns and maturity value from your PPF investment.

#### How is the Interest on PPF Calculated?

Interest on PPF is calculated annually and compounded at the end of each financial year. The interest rate is set by the government every quarter.

#### How is the PPF Maturity Period Calculated?

The PPF maturity period is 15 years from the end of the financial year in which the first investment was made. After maturity, it can be extended in blocks of 5 years.

#### Is PPF Investment Tax-Free?

Yes, PPF investments are tax-free. The contributions, interest earned, and the maturity amount are all exempt from tax under Section 80C of the Income Tax Act.

#### What is the Minimum Amount Required to Start Investing in PPF?

The minimum amount required to start investing in a PPF account is ₹500 per financial year.

#### What is Better: PPF or FD?

Both PPF and FD have their advantages. PPF offers tax benefits and long-term savings, whereas FDs provide flexibility in tenure and higher liquidity. The choice depends on individual financial goals and needs.

#### Can I Make Partial Withdrawals from PPF Before 5 Years?

Partial withdrawals from PPF are not allowed before the completion of 5 years. Partial withdrawals can be made from the seventh financial year.