PPF Calculator

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.

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 15 years, and the rate of interest is 7.1%. 

By the time of maturity, the value of your total corpus will be Rs 54,24,279, against a total investment of Rs 30,00,000. This means that the interest earned will be Rs 24,24,279.

The above table itself shows how complicated and time-consuming the calculation is. Furthermore, since each of the values in the aforementioned table is linked with its previous value, even a minor error will give completely wrong results. However, using the PPF return calculator or PPF maturity calculator will solve all the issues. 

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: Open INDmoney PPF calculator in your browser

Step 2: Enter your desired values of annual contribution and time period of investment

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

Benefits of Using INDmoney PPF Calculator

There are several benefits of using INDmoney PPF calculator online:

• You do not have to sit with manual calculations using complex formulas. INDmoney PPF calculator saves your time and effort by calculating PPF returns within no time.
• You can change the value of the annual contribution and time period and get results accordingly. This allows you to compare different investment options according to your ability and goals.
• The interest rate on the PPF account is fixed at 7.1%. INDmoney PPF calculator takes this interest rate automatically so that you do not have to enter the interest rate separately.
• It shows you the total invested amount, return on investment, and final maturity value so that you can evaluate how much return you will be able to earn through a certain amount of investment.
• INDmoney PPF calculator comes with an easy-to-use interface. The tool is completely free and does not require any signup.

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.