Post Office PPF Calculator

A post office PPF is a small savings scheme that is a tax saving and risk-free instrument. It offers fixed returns to investors. Individuals can make monthly or yearly contributions towards this scheme. It becomes essential for investors to estimate their potential returns from their investment. A post office PPF calculator estimates how much the PPF contribution has grown by the end of an investment tenure.

What is a Post Office PPF Calculator?

A Post Office PPF Calculator helps in estimating the PPF returns.  You can determine the potential returns of a Post Office PPF account by entering data inputs such as the yearly investment amount and duration of the investment. The calculator computes potential returns based on the given inputs. It determines the potential wealth gain through post office PPF investments. Therefore, this calculator automatically computes the maturity amount and the wealth gained from the PPF investment.

How Does a Post Office PPF Calculator Work?

The calculator is a simple and user-friendly tool. The calculator is self-explanatory for you to understand how it calculates the post office maturity amount. The following are the details you must enter to estimate the earnings on a given investment amount.

• Tenure: The duration for which you are willing to invest. The minimum duration for a post office PPF is 15 years, and the maximum is 50 years.
• Investment Amount: The yearly amount that you want to invest in this scheme. You can start with a minimum investment amount of Rs. 500 in a year towards your post office PPF and maximum up to INR 1.5lakhs in a year.
• Interest Rate: The current post office interest rate is 7.1% which automatically appears in the Scripbox calculator. Scripbox updates its calculator with the current interest rate from time to time. However, you can edit the interest for your calculations.

After entering the above inputs in the post office calculator, it provides the following output.

• Total Investment: It is the sum of all yearly investments till the end of investment tenure.
• Wealth Gained: It is the total interest amount earned during the investment tenure.
• Maturity Amount: It is the total amount that you can expect from your PPF investment.

Therefore, this calculator uses the compounding method to compute the returns on investment. It measures the annual growth rate of the post office investment over a period of time with the effect of compounding.

How To Use a Post Office PPF Account Calculator?

The following are steps on how to use a post office PPF calculator –

• Firstly, you have to visit the Scripbox website to determine the potential returns from their post office PPF investments.
• Next, you have to enter the amount to be invested and the investment duration.
• After the details are entered, the post office PPF calculator will provide the total corpus created at the end of the investment period.

Let us understand how to use Scripbox’s PPF calculator with the help of an example.

Mr Kartick wants to determine his potential returns from post office PPF investments. The yearly investment amount he wishes to invest is INR 1,50,000 and for a tenure of 15 years. The current post office PPF interest rate is 7.1%.

The post office PPF calculator estimates the following based on the above inputs:

• Total Investment: INR 22,50,000
• Wealth gained: INR 18,18,209
• Maturity value: INR 40,68,209

Therefore, Mr Kartick’s potential return from post office PPF investment is INR 40,68,209 by the end of his investment tenure.

Benefits of Using a Post Office PPF Calculator

While making any investment decision, it is important to know the expected maturity amount in advance. This helps the investor make an appropriate decision and choose between the alternatives to post office PPF to match their financial goals.

The following are the benefits of using the post office PPF calculator –

• Estimates the Wealth Gained: The online post office PPF calculator estimates how much interest can be earned with a given amount of principal in hand.
• Informed Decision: This helps the investor in decision making on the investment horizon, i.e. for how long should the investment be held to achieve the desired investment objective.
• Fast and Accurate: This calculator is quite fast in computing results. Moreover, the calculator estimates the wealth gained as per the inputs provided. However, it does not guarantee returns. It only estimates the return from a PO PPF investment.
• Easy to Use:  The PO PPF calculator is a simple tool and easy to use. You only have to enter the investment amount per annum and tenure of investment. The calculator estimates the wealth gained and maturity amount. Moreover, the calculator also suggests alternatives to post office PPF.