PPF Calculator – Public Provident Fund Interest and Maturity Calculator
PPF Calculator helps estimate the potential wealth gain and maturity amount from your PPF investments. Public Provident Fund is a long term investment cum tax savings scheme backed by GOI, where the investment, interest and maturity amount are tax exempted.
What is PPF?
PPF stands for Public Provident Fund. It was introduced in 1968 for the aim to mobilize small savings into an investment with reasonable returns with additional benefits to save tax. It helps one build a retirement corpus. The current PPF account interest rate on PPF is 7.10% p.a. compounded annually. PPF is backed by the government of India, and the risk involved is very minimal, and it offers guaranteed risk-free returns. Also, it falls under EEE status, which means that the amount invested, interest earned, and maturity amount received are all tax-free.
Opening a Public Provident Fund account
It’s easy to open a PPF account. All one needs is to submit an application form along with KYC, address proof, identity proof, and signature proof. A PPF account can be opened with a Post Office or any other nationalized banks. Some private banks are also authorized to help open PPF accounts. Amount invested in PPF account is locked in for 15 years. But there is an option to withdraw money from the start of 7 th year, after completing 6 years. One can withdraw the amount once a year.
Minimum tenture
PPF has a minimum tenure of 15 years which can be extended indefinitely in blocks of 5 years. Furthermore, the minimum investment in PPF account is Rs. 500 and maximum is Rs. 1,50,000. Investments can be made in lump sum or in a maximum of 12 installments. Deposits into a PPF account have to be made at least once a year for 15 years.
List of PPF Calculators by Banks
- HDFC PPF Calculator
- SBI PPF Calculator
- Post Office PPF Calculator
- ICICI PPF Calculator
- PNB PPF Calculator
- Canara Bank PPF Calculator
- BOB PPF Calculator
- BOI PPF Calculator
- Axis PPF Calculator
PPF Interest Rates Change History 2024
Financial Year | Time Period | PPF Interest Rate (per annum) |
2023-2024 | April 2023 – November 2024 | 7.10% p.a. |
2022-2023 | April 2022 – March 2023 | 7.10% |
2021-2022 | April 2021 – March 2022 | 7.10% |
2020-2021 | April 2020 – March 2021 | 7.10% |
2020-2021 | January 2020 – March 2020 | 7.90% |
2019-2020 | October 2019 – December 2019 | 7.90% |
2019-2020 | July 2019 – September 2019 | 7.90% |
2019-2020 | April 2019 – June 2019 | 8.0% |
2018-2019 | January 2019 – March 2019 | 8.0% |
2018-2019 | October 2018 – December 2018 | 8.0% |
2018-2019 | July 2018 – September 2018 | 8.0% |
2018-2019 | April 2018 – June 2018 | 7.60% |
2017-2018 | January 2018 – March 2018 | 7.60% |
2017-2018 | October 2017 – December 2017 | 7.80% |
2017-2018 | July 2017 – September 2017 | 7.80% |
2017-2018 | April 2017 – June 2017 | 7.90% |
2015-2016 | April 2015 – March 2016 | 8.70% |
2014-2015 | April 2014 – March 2015 | 8.70% |
2013-2014 | April 2013 – March 2014 | 8.70% |
2012-2013 | April 2012 – March 2013 | 8.80% |
2011-2012 | April 2011 – November 2011 | 8.0% |
2011-2012 | December 2011 – March 2012 | 8.60% |
2010-2011 | April 2010 – March 2011 | 8.0% |
2009-2010 | April 2009 – March 2010 | 8.0% |
2008-2009 | April 2008 – March 2009 | 8.0% |
2007-2008 | April 2007 – March 2008 | 8.0% |
2006-2007 | April 2006 – March 2007 | 8.0% |
2005-2006 | April 2005 – March 2006 | 8.0% |
2004-2005 | April 2004 – March 2005 | 8.0% |
Explore
How To Use Scripbox PPF Calculator?
Scripbox’s PPF calculator is available online and is free to use. It helps in estimating PPF returns. You can determine the potential returns of an PPF account by entering data inputs such as yearly investment amount and duration of the investment. On the basis of the input, the calculator computes the potential returns. It determines the wealth gained through PPF investments.
The Scripbox’s PPF calculator automatically computes the maturity amount and also the wealth gained from the PPF investment.
Input
The PPF calculator requires the following inputs.
- Yearly Investment: The amount you wish to invest in a PPF account in a year.
- Duration of Investment (in years): PPF account has a lockin period of 15 years and investors who wish to extend their investment can do so by a block period of five years.
- Current Interest Rate (%): Time to time, Scripbox updates its calculator with the current PPF interest rates.
Output
With the given inputs, the PPF calculator determines the following values:
- Total Investment: It is the sum of all the yearly investments.
- Wealth Gained: It is the total amount gained during the investment tenure.
- Maturity Amount: Maturity amount is the total amount one can expect from their PPF investments. In other words, it is the value that one can expect at the end of their investment tenure.
Let us understand how to use Scripbox’s PPF calculator with the help of an example.
Mr Kedar would like to determine his potential returns from PPF investments. The yearly investment amount he wishes to invest is INR 1,50,000 and for a tenure of 15 years. The current PPF interest rate is 7.10% p.a..
The calculator estimates the following:
- Total Investment: INR 22,50,000
- Wealth gained: INR 18,18,209
- Maturity value: INR 40,68,209
Therefore, Mr Kedar’s potential return from PPF investment is INR 40,68,209 by the end of his investment tenure.
How to Calculate Expected Returns in PPF ?
The expected returns is calculated by using the following PPF Formula:
A = P [({(1+i) ^n}-1)/i]
Where,
A is the maturity amount
P is the principal amount invested in the PPF account
I is the expected interest rate of return on PPF scheme
N is the tenure for which is the amount is invested in PPF scheme
Let us understand the concept of compounding of interest and its effect on overall investment with the help of 3 investment alternatives.
Mr. Arun invests Rs. 20,000 every year at 7.90% interest rate.
The investment period alternatives are given below
Investment period | Total amount invested | Total interest earned | Maturity value | Incremental Maturity Value |
15 years | Rs. 300,000 | Rs. 242,428 | Rs. 542,428 | – |
20 years | Rs. 400,000 | Rs. 487,772 | Rs. 887,772 | = (Rs. 887,772 – Rs. 542,428) = Rs. 345,344 |
25 years | Rs. 500,000 | Rs. 874,402 | Rs. 1,374,402 | = (Rs. 1,374,402 – Rs. 887,772) = Rs. 486,630 |
From the above example, we can conclude that
- With an additional 5 years of investment of Rs 100,000 the maturity increases from Rs. 4.8 lakh to Rs. 8.8 lakh
- With an additional next 5 years of investment of another Rs. 100,000 the maturity increase from Rs. 8.8 lakh to Rs. 13.3 lakh
- With an additional overall 10 years of investment of Rs. 200,000 the maturity increases from Rs. 4.8 lakh to Rs. 13.3 lakh
This makes the concept of compounding clear and helps us understand the importance of compounding on interest for PPF scheme in India and how the maturity value increases with an increase in investment period for the same amount invested.
PPF Investment Schedule
To understand the entire concept let us take an example and understand through the PPF investment schedule.
Suppose an investor invests Rs. 1.1 lakh every year, avail loan on PPF and withdraw the permissible amount invested. The rate of interest is assumed to be 7.90% (current PPF account rate of interest is 7.10% p.a.)
The below table will clear the concept of compounding, opening balance, the effect of loan and withdrawal on the PPF account and its maturity value
Years | Opening Balance | Amount Deposited | Interest Earned | Closing Balance | Loan Availed | Withdrawal |
1 | Rs. 0 | Rs. 110,000 | Rs. 8,690 | Rs. 118,690 | Rs. 0 | Rs. 0 |
2 | Rs. 118,690 | Rs. 110,000 | Rs. 18,067 | Rs. 246,757 | Rs. 0 | Rs. 0 |
3 | Rs. 246,757 | Rs. 110,000 | Rs. 28,184 | Rs. 384,941 | Rs. 29,673 | Rs. 0 |
4 | Rs. 384,941 | Rs. 110,000 | Rs. 39,100 | Rs. 534,041 | Rs. 61,689 | Rs. 0 |
5 | Rs. 534,041 | Rs. 110,000 | Rs. 50,879 | Rs. 694,920 | Rs. 96,235 | Rs. 0 |
6 | Rs. 694,920 | Rs. 110,000 | Rs. 63,589 | Rs. 868,509 | Rs. 133,510 | Rs. 0 |
7 | Rs. 868,509 | Rs. 110,000 | Rs. 77,302 | Rs. 1,055,811 | Rs. 0 | Rs. 192,471 |
8 | Rs. 1,055,811 | Rs. 110,000 | Rs. 92,099 | Rs. 1,257,910 | Rs. 0 | Rs. 267,021 |
9 | Rs. 1,257,910 | Rs. 110,000 | Rs. 108,065 | Rs. 1,475,975 | Rs. 0 | Rs. 347,460 |
10 | Rs. 1,475,975 | Rs. 110,000 | Rs. 125,292 | Rs. 1,711,267 | Rs. 0 | Rs. 434,255 |
11 | Rs. 1,711,267 | Rs. 110,000 | Rs. 143,880 | Rs. 1,965,147 | Rs. 0 | Rs. 527,906 |
12 | Rs. 1,965,147 | Rs. 110,000 | Rs. 163,937 | Rs. 2,239,084 | Rs. 0 | Rs. 628,955 |
13 | Rs. 2,239,084 | Rs. 110,000 | Rs. 185,578 | Rs. 2,534,662 | Rs. 0 | Rs. 737,988 |
14 | Rs. 2,534,662 | Rs. 110,000 | Rs. 208,928 | Rs. 2,853,590 | Rs. 0 | Rs. 855,634 |
15 | Rs. 2,853,590 | Rs. 110,000 | Rs. 234,124 | Rs. 3,197,714 | Rs. 0 | Rs. 982,574 |
You can use Scripbox’s EMI Calculator to find your monthly instalments.
Advantages of Using PPF Calculator
A PPF account calculator is an online simple and easy to use tool. A PPF calculator provides an estimate of interest earned, maturity value for a given amount invested and investment period.
An investor can use the PPF calculator by simply visiting our website, enter the amount to be invested and period of investment. The PPF maturity calculator will provide the total corpus created at the end of the investment period.
Today it is very important to know in advance the expected maturity amount. This helps an investor make the most appropriate decision and choose between alternatives to PPF which will match his/ her financial goals.
The advantages of using an online PPF account calculator is listed below;
- An online PPF interest calculator provides an investor with an estimation of how much interest can be earned given an amount of principal in hand.
- It helps an investor in making the decision on the investment horizon, for how long the investment should be held to achieve the investment goal.
- An online PPF maturity calculator provides the schedule of investment in advance (as shown above), this helps in planning the yearly amount to be invested, loan that can be availed and the amount that can be withdrawn.
Compare PPF with Tax Saving Investments
PPF is a popular investment among the various tax-saving options. An investor must analyze the alternatives to the PPF scheme and then make an investment decision. This decision must be the basis which is best suited for his/ her financial goals which can be either long term like 15 years or short term say 5 years for a given lock-in period and returns expected.
Let us understand the alternatives to PPF and the risk, interest, and tax implications they offer.
Scheme Plan | Lock-in period | Interest Rate | Tax Implication |
Equity Linked Savings Scheme (ELSS) | 3 years | 12.00% to 15.00% p.a. | Principal amount- 80C deduction Interest- 10% LTCG Dividend- 10% DDT |
National Saving Certificate(NSC) | 5 years | 7.70% p.a. | Deduction on a deposit made up to Rs 1.5 lakh |
Unit Linked Insurance Plan (ULIP) | 5 years | 12.00% to 15.00% p.a. | Principal amount- 80C deduction Interest-Tax-free |
National Pension Scheme (NPS) | 3 years | 9.00% to 12.00% p.a. | Principal amount- 80C deduction Interest-Tax-free |
Pradhan Mantri Vaya Vandhana Yojana (PMVVY) | 10 years | 7.40% p.a. | Principal amount- 80C deduction Interest-Tax-free |
Senior Citizen’s Saving Scheme (SCSS) | 5 years | 8.20% p.a. | Principal amount- 80C deduction Interest-Tax-free |
Tax Saving Fixed Deposits | 5 years | 6.90% to 7.50% p.a. | Principal amount- 80C deduction Interest- Taxable |
Frequently Asked Questions
The interest rate for PPF is reviewed every quarter. For the current quarter, the interest rate is 7.10% p.a.. The interest is compounded annually for this scheme. The interest is calculated every month but credited to the investors account at the end of the year on the 31st of March.The interest is calculated on the minimum balance left in the account between 5th and end of each month. Investors can take advantage of this by investing in PPF before 5th of every month. The deposits made before 5th will earn interest in that month. PPF deposits can be made in a lumpsum or every month. Investors making lump sum investments by the 5th of April every year can earn interest on this amount for the entire year. The maximum investment in PPF is INR 1.5 lakhs per annum, and the minimum is INR 500.
Both PPF and FD are safe investment options. Both the investments offer guaranteed returns. However, which is better is based on the investor’s needs and investment horizon. In comparison to an FD, PPF has a longer lock-in period of 15 years. Also, PPFs allow premature withdrawals only after the 5th year. Additionally, there is a withdrawal limit. On the other hand, FDs have a lock-in period ranging between 7 days to 10 years. Also, banks allow premature withdrawals, however with a penalty. Investors can avail loan against their PPF investments from the third year. While in the case of an FD, the bank provides an overdraft facility up to 90% of the deposit amount.
Both PPF and FD investments can be claimed for tax deductions. Under section 80C of the Income Tax Act, investors can claim deduction up to INR 1,50,000 per annum. Therefore, which investment is better depends on the investor. For long term investments, PPF is a promising avenue with guaranteed returns. PPF is a good investment for retirement. On the other hand, FD is suitable for investors looking at short term investments.
No. PPF doesn’t allow investors to make partial withdrawals before five years. Even after five years, PPF has a restriction on the withdrawal limit. Additionally, investors can avail a loan on their PPF investment from the third year.
Systematic Investment Plan (SIP) is one of the ways for investing in mutual funds. Investors opting for the SIP route for investing in mutual funds pay a fixed amount every month towards a mutual fund. SIP investing helps in reducing the average cost of investing. Additionally, SIP allows investors to accumulate more units than the lump sum route by spreading out the investments over some time. The returns from SIP investing are market-linked and have a higher potential to earn more returns than fixed-income savings schemes.PPF is a government-backed savings scheme with guaranteed fixed income in the form of interest payments. The interest rate for PPF is fixed by the government every quarter. Investors can invest in PPF through a lump sum route or monthly basis. The minimum and maximum investments are INR 500 and INR 1.5 lakhs, respectively.
The PPF account has a specified lock-in period of 15 years. However, investors can make partial withdrawals from the 5th year. Additionally, to keep the account active, an investor needs to invest at least INR 100 per annum. Also, investors can extend their PPF investments beyond 15 years. The extension can be done for a block period of five years. Additional contributions aren’t compulsory during the extension period.
Investors cannot open multiple PPF accounts. The PPF accounts are easily transferable from one post office or bank to another. And investors can also extend their PPF investment in blocks of 5 years.
An investor will receive the matured amount in the PPF account. This maturity amount will be the principal amount invested and the interest earned during the 15 years. To know the expected amount after 15 years in advance, use the PPF calculator, just enter the amount deposited, period and the wealth gain will be calculated.
Yes, you can withdraw the entire amount invested as deposits and the interest earned after the expiry of the locking period i.e. 15 years
The rate of interest and other facility-related to PPF is the same across all the banks. The difference among the banks is of the facility and customer service provided. Many banks provide online service which is easy to use, apply, make deposits, avail loans and withdraw. An investor can choose a bank that provides good customer experience and an online facility. Many private and public banks offer PPF facility like SBI, HDFC Bank, ICICI Bank, and others.
Yes, you can transfer the PPF account from one branch of a bank to another branch or from one branch of a post office to another. The process is quite simple, you can visit your existing branch of the bank or post office and submit an application to change the branch. This process can take from one to seven days varying from one branch to another.
The rate of interest is reviewed every quarter and regulated by the government of India. The interest on PPF is compounded annually, calculated monthly and credited at the end of the financial year i.e 31st March. The current rate of interest on PPF account is 7.10%
The PPF account has a lock-in period of 15 years, post this period the investment will mature and the entire wealth gained can be withdrawn or the PPF account can be extended in blocks of 5 years.
No, the PPF account has a lock-in for 15 years. On completion of 15 years, the entire amount will be paid. But if you are in need of funds, you can choose to partially withdraw funds after the completion of 6 years. The withdrawal is allowed up to 50% of the total balance at the end of the fourth financial year immediately preceding the year of withdrawal OR total balance at the end of the financial immediately preceding the year of withdrawal whichever is lower
In case you have missed paying the minimum amount of Rs 500 in any financial year, your account will be marked as inactive. To activate this account you will have to pay a small penalty of Rs 50 and make a deposit for the years you have missed paying the deposit. This way the account will be reactivated and start earning interest again
The PPF account carries many benefits like regulated by the Government of India, not affected by the market fluctuations, tax exemptions, loan facility, withdrawal options. It is a good investment option for an investor who seeks retirement benefits or a very long term secure investment. However, there are other alternatives to PPF like ELSS, ULIP etc.
PPF scheme in India is a popular savings investment option among the investors. PPF scheme is a long term savings scheme with the aim to provide security on retirement to its subscribers. For an Indian citizen who wants to secure his/ her retirement and wishes to invest in a long term plan, PPF is a good option to invest. The amount invested in a PPF account is tax-exempt, the interest earned and maturity amount is tax-free. The PPF interest rate is regulated by the Government of India every quarter making the investment of low risk.
The alternatives to PPF scheme are ELSS, ULIP, NPS, NSC, Pradhan Mantri Vaya Vandhana Yojana (PMVVY), tax-saving fixed deposit, Senior Citizen’s Saving Scheme (SCSS) and others
With a yearly investment of Rs 1,50,000 at the rate of 7.1%, you can expect Rs 40,68,209 at the end of 15 years. You can use Scripbox’s PPF Calculator to estimate your returns. Furthermore, the calculator is available online and is free to use
The PPF maturity amount can be calculated using the below formula:
A = P [({(1+i) ^n}-1)/i]
Where, A is the maturity amount, P is the principal amount, I is the expected interest rate of return and N is the tenure for which is the amount is invested in the scheme
Alternatives, one can use the online PPF Calculator from Scripbox to compute and estimate their PPF return
LIC and PPF are two options that offer secure returns depending on the type of LIC policy. The purpose of a LIC is to offer insurance for the life of the policyholder. While PPF is a long term investment option suitable for retirement goals. Having a LIC policy is beneficial when an individual wishes to safeguard their family’s financial future in case of the unforeseen or untimely death of the holder. Furthermore, if an individual does survive till the maturity period, they can use the return amount for their retirement.
On the other hand, PPF helps in accumulating a significant corpus in the long term. Additionally, PPF falls under the Exempt-Exempt-Exempt (EEE) category, where the investments, interest and maturity amount is completely exempted from tax. Historical returns from LIC have been around 6% to 8%, and for PPF, the current rate is 7.40% p.a.. However, this rate might be lower depending on the policy. Also, LIC is an insurance cover that comes in need during unforeseen events. Therefore, the investment objective for LIC and PPF are different. Hence, individuals have to consider their investment objective, financial obligations and other details before choosing a scheme