Yearly contribution towards PPF
I expect returns up to
Tenure
Total investment
Interest earned
If you invest ₹ 10,000 per year from today for 15 years you will get
Future Value
Anyone looking for a safe investment option to save taxes and earn guaranteed returns should open a PPF account. Calculate your future value with the help of moneyfy PPF calculate.
Public Provident Fund (PPF) scheme is a long term investment option that offers an attractive rate of interest and returns on the amount invested. The interest earned and the returns are not taxable under Income Tax. One has to open a PPF account under this scheme and the amount deposited during a year will be claimed under section 80C deductions.
The current interest rate is 7.1% p.a. (for the quarter 1 July 2021 to 30 September 2021; continued from the previous quarter) that is compounded annually. The Finance Ministry set the interest rate every year, which is paid on 31st March. The interest is calculated on the lowest balance between the close of the fifth day and the last day of every month. Further, use our PPF calculator to figure out the returns you can expect on investing a certain amount in a PPF account..
Four essential features of PPF
The Public Provident Fund (PPF) account calculator is an online financial tool that helps you answer questions related to your Public Provident Fund (PPF). A few specifications must be followed when calculating the maturity amount after a certain time. It helps you analyse the growth of your capital effectively.
As you might be aware, the interest rate of your PPF savings account changes every month. A PPF calculator can help you keep track of these fluctuating interest rates by allowing you to make accurate and instant calculations regarding your PPF account. While there are many PPF calculators online, we recommend Moneyfy’s PPF calculator for its reliability, giving you the confidence that your calculations are always dependable.
Moneyfy leverages the following formula to calculate your interest and total deposited amount:
F = P [({(1+i) ^n}-1)/i]
The formula includes the following variables:
1. F- Maturity of PPF
2. P- Annual Instalments
3. I- Interest rate
4. N- Total number of years
Let’s take an example. For instance, you pay a sum of Rs 1,50,000 annually as your PPF investment for 15 years at an interest rate of 7.1%. With these figures, in the closing year, you will have a maturity sum of Rs 40,68,209.
If done manually, this calculation can be complex and prone to errors. So, consider using Moneyfy’s PPF calculator to ensure reliable and accurate PPF calculations every time.
This tool is easy to use, reliable and requires you to only share basic information for calculations. Start by specifying your yearly contribution towards PPF and type in the percentage or slide the bar to specify the expected returns. After this, specify your tenure in months or years. That’s it. Based on this information, the PPF calculator will calculate your total investment and the interest you will earn at the end of the maturity period.
Here is why you should use a PPF calculator:
1. The PPF calculator helps you analyse how much interest you can earn with the investment of a certain sum.
2. The calculator can save you from paying high taxes as the PPF interest and maturity amount are tax-free under Section 80C of the Income Tax Act 1961.
3. It helps you decide the ideal maturity period of your investment easily.
4. It allows you to calculate your estimated total investment in a financial year.
By offering these key benefits, a PPF calculator helps you make informed financial decisions and plan your financial future efficiently.
Any Indian citizen can invest in PPF.
One citizen can have only one PPF account unless the second account is in the name of a minor.
NRIs and HUFs are not eligible to open a PPF account.
As a rule, one can fully withdraw the PPF account balance only upon maturity i.e. after the completion of 15 years. Upon completion of 15 years, the entire amount standing to the credit of an account holder in the PPF account along with the accrued interest can be withdrawn freely and the account can be closed.
However, if account holders are in need of funds, and wish to withdraw before 15 years, the scheme permits partial withdrawals from year 7 i.e. on completing 6 years.
An account holder can withdraw prematurely, up to a maximum of 50% of the amount that is in the account at the end of the 4th year (preceding the year in which the amount is withdrawn or at the end of the preceding year, whichever is lower). Further, withdrawals can be made only once in a financial year.
PPF is one investment vehicle that falls under the Exempt-Exempt-Exempt (EEE) category. This, in other words, means that all deposits made in the PPF are deductible under Section 80C of the Income Tax Act. Furthermore, the accumulated amount and interest is also exempt from tax at the time of withdrawal. It is important to note that a PPF account cannot be closed before maturity. A PPF account, however, can be transferred from one point of designation to another. But, do remember that a PPF account cannot be closed prematurely. Only in the case of the account holder’s demise can the nominee’s file for the closure of the account.
The Central Government specifies the interest rate for your PPF account periodically. At present, the PPF interest rate is set at 7.1%. However, it is subject to change. Be sure to check the changes in the PPF interest rate for accurate financial planning.
Yes, you can transfer your PPF account to another authorised financial institution or post office. In such a case, your PPF account will be considered as a continuing account and not a new one. It's best to consult your current financial institution to understand the process of transferring your PPF account smoothly.
The minimum lock-in period for PPF is 15 years. In other words, your investment will mature at the completion of 15 years. At maturity, you can either withdraw the sum or extend it in blocks of five years.
PPF calculators estimate the maturity amount and interest earned from your PPF investments. They consider factors like the contributed amount, duration of the investment, and interest rates.
Individuals must input the invested amount and duration. For example, if an individual invests Rs. 20,000 annually into a PPF for 15 years, with an interest rate of 7.1%, their maturity value could reach Rs. 6,78,035.
PPF calculators can be found online, and many financial institutions offer their own. For example, Tata Capital Moneyfy provides an accurate and easy-to-use PPF calculator online, where individuals can input their invested amount, duration, and interest rates.
The PPF maturity period can be calculated using the following formula:
F = P[({(1 + i)n} – 1)/i]**
Where:
F = Maturity Amount
i = Rate of interest
N = Investment Tenure in years
P = Principal Amount invested yearly
The Public Provident Fund has a minimum lock-in period of 15 years. After this, individuals can opt to extend it in blocks of 5 years at a time. You can invest between Rs. 500 and Rs. 1,50,000 every year.