Online PPF Calculator India 2023

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. The current interest rate is 7.1%. Estimate your investment value with the help of Scripbox’s PPF Calculator.

PPF Calculators by Banks

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 7.1% 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 PPF 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.

PPF Interest Rates January 2023

Financial YearTime PeriodPPF Interest Rate (per annum)
2022-2023April 2022 – March 20237.10%
2021-2022April 2021 – March 20227.10%
2020-2021April 2020 – March 20217.10%
2020-2021January 2020 – March 2020 7.90%
2019-2020October 2019 – December 20197.90%
2019-2020July 2019 – September 20197.90%
2019-2020April 2019 – June 20198.0%
2018-2019January 2019 – March 20198.0%
2018-2019October 2018 – December 20188.0%
2018-2019July 2018 – September 20188.0%
2018-2019April 2018 – June 20187.60%
2017-2018January 2018 – March 20187.60%
2017-2018October 2017 – December 20177.80%
2017-2018July 2017 – September 20177.80%
2017-2018April 2017 – June 20177.90%
2015-2016April 2015 – March 20168.70%
2014-2015April 2014 – March 20158.70%
2013-2014April 2013 – March 20148.70%
2012-2013April 2012 – March 20138.80%
2011-2012April 2011 – November 20118.0%
2011-2012December 2011 – March 20128.60%
2010-2011April 2010 – March 20118.0%
2009-2010April 2009 – March 20108.0%
2008-2009April 2008 – March 20098.0%
2007-2008April 2007 – March 20088.0%
2006-2007April 2006 – March 20078.0%
2005-2006April 2005 – March 20068.0%
2004-2005April 2004 – March 20058.0%
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PPF Interest Rate

How To Use the 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 7.1%.

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 from 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

Alternative 1: 15 years

Alternative 2: 20 years

Alternative 3: 25 years

Investment periodTotal amount investedTotal interest earnedMaturity valueIncremental Maturity Value
15 yearsRs. 300,000Rs. 242,428Rs. 542,428
20 yearsRs. 400,000Rs. 487,772Rs. 887,772= (Rs. 887,772 – Rs. 542,428) = Rs. 345,344
25 yearsRs. 500,000Rs. 874,402Rs. 1,374,402= (Rs. 1,374,402 – Rs. 887,772) = Rs. 486,630

From the above example, we can conclude that

  1. With an additional 5 years of investment of Rs 100,000 the maturity increases from Rs. 4.8 lakh to Rs. 8.8 lakh
  2. 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
  3. 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 7.1%)

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

YearsOpening BalanceAmount DepositedInterest EarnedClosing BalanceLoan AvailedWithdrawal
1Rs. 0Rs. 110,000Rs. 8,690Rs. 118,690Rs. 0Rs. 0
2Rs. 118,690Rs. 110,000Rs. 18,067Rs. 246,757Rs. 0Rs. 0
3Rs. 246,757Rs. 110,000Rs. 28,184Rs. 384,941Rs. 29,673Rs. 0
4Rs. 384,941Rs. 110,000Rs. 39,100Rs. 534,041Rs. 61,689Rs. 0
5Rs. 534,041Rs. 110,000Rs. 50,879Rs. 694,920Rs. 96,235Rs. 0
6Rs. 694,920Rs. 110,000Rs. 63,589Rs. 868,509Rs. 133,510Rs. 0
7Rs. 868,509Rs. 110,000Rs. 77,302Rs. 1,055,811Rs. 0Rs. 192,471
8Rs. 1,055,811Rs. 110,000Rs. 92,099Rs. 1,257,910Rs. 0Rs. 267,021
9Rs. 1,257,910Rs. 110,000Rs. 108,065Rs. 1,475,975Rs. 0Rs. 347,460
10Rs. 1,475,975Rs. 110,000Rs. 125,292Rs. 1,711,267Rs. 0Rs. 434,255
11Rs. 1,711,267Rs. 110,000Rs. 143,880Rs. 1,965,147Rs. 0Rs. 527,906
12Rs. 1,965,147Rs. 110,000Rs. 163,937Rs. 2,239,084Rs. 0Rs. 628,955
13Rs. 2,239,084Rs. 110,000Rs. 185,578Rs. 2,534,662Rs. 0Rs. 737,988
14Rs. 2,534,662Rs. 110,000Rs. 208,928Rs. 2,853,590Rs. 0Rs. 855,634
15Rs. 2,853,590Rs. 110,000Rs. 234,124Rs. 3,197,714Rs. 0Rs. 982,574

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;

  1. 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.
  2. 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.
  3. 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.

Which Banks Provide a PPF Account?

PPF account is offered by many nationalized banks, private banks, post offices and its branches with the facility to apply online and offline.

The following banks provide PPF account facility.

Bank Online facility availableType of bank
State Bank of IndiaYesPublic Sector
ICICI BankYesPrivate Sector
HDFC BankYesPrivate Sector
Central Bank of IndiaYesPublic Sector
Bank of India (BOI)YesPublic Sector
Union Bank of IndiaNoPublic Sector
Bank of MaharashtraNoPublic Sector
IDBIYesPublic Sector
Bank of Baroda (BOB)NoPublic Sector
Vijaya BankNoPublic Sector
Allahabad BankYesPublic Sector
Oriental Bank of Commerce(OBC)NoPublic Sector
Canara BankYesPublic Sector
Corporation BankNoPublic Sector
Dena BankNoPublic Sector
Indian BankNoPublic Sector
Axis BankYesPrivate Sector
Indian Overseas Bank (IOB)NoPublic Sector
Punjab National Bank (PNB)NoPublic Sector
United Bank of IndiaNoPublic Sector
Syndicate BankNoPublic Sector
Andhra BankNoPublic Sector
UCO BankNoPublic Sector

ELSS Vs PPF

Returns of PPF are guaranteed by the government. When PPF was introduced, it gave returns of 12% per annum. Now returns from PPF are 7.1%. Even with guaranteed returns, one cannot solely depend on PPF as an investment avenue as inflation will eat up the returns. For investors who are risk averse and looking for tax saving, PPF can be the best option. But for risk lovers, there are certainly other options to explore. The best among them is ELSS fund which also a tax saving investment option.

Returns from ELSS funds are market-linked and hence there are no assured returns. Yet, historically average ELSS funds have generated healthy returns of ~14% over the long-term while the good ones have given 20%! One can expect 12–14% returns from ELSS if remaining invested for 7–10 years.

Example

Mr. Anirudh has invested Rs. 1,50,000 in PPF and his friend Ms. Annanya invested Rs. 1,50,000 in ELSS. Both of them have stayed invested for 15 years. The following table shows the returns of both before and after inflation (4%) and tax.

PPFELSS
Amount investedRs.150,000Rs.150,000
Tenure1515
Returns8%13%
Maturity Amount (Pre tax)Rs. 475,825Rs. 938,141
Maturity Amount (Post tax)Rs. 475,825Rs. 754,326.9
Post Inflation Returns (Pre Tax)Rs. 270,142Rs. 546,373
Post Inflation Returns (Post Tax)Rs. 270,142Rs. 501,735.7

The returns are higher in case of ELSS both and after inflation and tax. Despite being subject to a tax of 10% on long-term gains, ELSS stands out as a clear winner.

What are the Alternatives to PPF?

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 PlanLock-in periodRisk LevelInterest RateTax Implication
Equity Linked Savings Scheme (ELSS)3 yearsHigh12% annually (historical). Subject to market movementsPrincipal amount- 80C deduction Interest- 10% LTCG Dividend- 10% DDT
National Saving Certificate(NSC)5 yearsLow6.8 % p.a. (Compounded Annually)Deduction on a deposit made up to Rs 1.5 lakh
Unit Linked Insurance Plan (ULIP)5 yearsHighSubject to ULIP fund performance in the marketPrincipal amount- 80C deduction Interest-Tax-free
National Pension Scheme (NPS)3 yearsLow12% – 14%, depends on the type of schemePrincipal amount- 80C deduction Interest-Tax-free
Pradhan Mantri Vaya Vandhana Yojana (PMVVY)10 yearsLow8.30%Principal amount- 80C deduction Interest-Tax-free
Senior Citizen’s Saving Scheme (SCSS)5 yearsLow7.60%Principal amount- 80C deduction Interest-Tax-free
Tax Saving Fixed Deposits5 yearsLow6.7%, differs bank to bankPrincipal amount- 80C deduction Interest- Taxable

Frequently Asked Questions

How PPF Interest is calculated?

The interest rate for PPF is reviewed every quarter. For the current quarter, the interest rate is 7.1%. 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.

Which is a better PPF or FD?

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.

Can I withdraw PPF before 5 years?

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.

Which is better PPF or SIP?

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.

What is the minimum lock-in period for PPF Account?

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.

Can you open 2 PPF accounts?

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.

How much I will get in PPF after 15 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.

Can I withdraw the full PPF amount after 15 years?

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

Which bank is best for PPF?

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.

Can I transfer my PPF account to another branch or office?

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.

How much interest rate can I get on my PPF account?

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%

When is my investment going to mature?

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.

Can I terminate the PPF account before maturity?

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

What happens if PPF is not paid?

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

Is the PPF scheme a good investment?

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.

How does a PPF work in India?

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.

What are the alternatives of PPF?

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

How much I will get in PPF after 15 years?

With a yearly investment of Rs 1,50,000 at the current PPF 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

How is PPF maturity amount calculated?

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

Is LIC better than PPF?

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 7.1%. 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