Public Provident Fund (PPF)

PPF stands for Public Provident Fund. It is one of India’s most well-known type of savings account to invest your money. PPF deposits are classified as EEE (Exempt-Exempt-Exempt) category. This means that the principal invested, the interest generated, and the maturity revenues are all tax-free.

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What is a PPF Calculator?

It can be tough to calculate the interest rates and returns on your PPF account. If you’re thinking about investing in PPF but aren’t sure how much to invest or what kind of returns you’ll earn, a PPF Calculator is handy in this situation.


How can a PPF calculator help?

This financial tool makes it simple to calculate the annual PPF returns that can be earned by making regular contributions to a PPF account over a set length of time. The calculator assists you in avoiding incurring a large tax bill.

Further, it provides:

  1. Assured returns as well as tax benefits.
  2. Estimates total investment that you can make in a financial year.


How to use a PPF calculator?

Here’s how to use this free calculator in simple steps:

  1. Enter the annual deposit amount.
  2. The number of years you want to remain invested.
  3. Once you fill in the required fields, the total maturity amount will appear in seconds.

If a person deposits funds on April 1st, the interest will be determined based on the financial year.



PPF interest is compounded on an annual basis on the formula mentioned below:

F = P [ ( { ( 1 + i ) ^ n } – 1 ) / i ]


F = Maturity of the PPF 

P = Annual installments 

n = Total number of years 

i = Rate of interest / 100


For example, if you make annual payments of Rs. 1,00,000 to your PPF investment for 20 years at 7.1%.


F = 100000 [ ( { ( 1 + 0.071 ) ^ 20 } – 1 ) / 0.071 ]

Then your maturity proceeds will be ₹44,38,859.00 at the end of 20 years.

Yes, you have the option of transferring your account to a different office or branch.

» PPF investments have a low-risk element because the government backs them.

» A PPF account can be created in nationalized banks, public banks, post offices, and a few select private banks, all of which have a large customer base.

» Although a PPF has a 15-year lock-in duration, there are options to withdraw funds or take out loans after 7 years. When compared to bank FDs, the rewards from a PPF are more appealing.

» The principal invested, the interest generated, and the maturity revenues are all tax-free.

» Amounts put in a PPF account for a spouse or child are tax-free.

The interest rate is mostly set by the central government on a regular basis. The current interest rate is 7.1 percent per year.

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