PPF Calculator

Category: Finance
- January 13, 2025
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Minimum yearly deposit is ₹500 and maximum is ₹1,50,000
Additional yearly deposits within the ₹1,50,000 limit
Current PPF interest rate is 7.1% p.a. (compounded yearly)
PPF account matures after 15 years with extension options

PPF Interest Formula:

A = P × (1 + r)n

Where:
A: Maturity Amount
P: Principal Amount
r: Annual Interest Rate (in decimal)
n: Number of Years

What is a Public Provident Fund (PPF)?

The Public Provident Fund (PPF) is a government-backed long-term savings scheme in India that offers a safe investment avenue with attractive returns. It encourages disciplined savings with tax benefits and a fixed interest rate compounded annually.

How Does the PPF Calculator Work?

The PPF Calculator estimates the maturity amount, total investment, and interest earned based on your yearly contributions, interest rate, and chosen investment tenure. The calculator simplifies the computation process and provides a detailed breakdown of your returns.

How to Use the PPF Calculator?

  1. Enter the initial investment amount for the first year (₹500 - ₹1,50,000).
  2. Specify the yearly investment amount for subsequent years.
  3. Input the applicable interest rate (default is 7.1%).
  4. Select the investment tenure (15 to 30 years).
  5. Click "Calculate Returns" to view the results.
  6. Review the maturity amount, interest earned, and yearly breakdown.

Benefits of the PPF Calculator

  • Accurate Estimation: Quickly calculates the maturity amount and total interest earned.
  • Yearly Breakdown: View detailed year-wise progress of your investment.
  • Tax Benefits: Understand the tax-free nature of returns under Section 80C.
  • Flexibility: Adjust investment amounts and tenure to match your goals.
  • Visual Insights: Explore growth and breakdown charts for a clear understanding.

Frequently Asked Questions (FAQ)

1. What is the minimum and maximum deposit limit for PPF?

The minimum deposit is ₹500 per year, and the maximum is ₹1,50,000 per year.

2. Is the interest earned on PPF taxable?

No, the interest earned on PPF is completely tax-free under Section 10 of the Income Tax Act.

3. Can I withdraw money from my PPF account before maturity?

Partial withdrawals are allowed after completing 5 financial years, subject to certain conditions.

4. What happens after the 15-year maturity period?

You can either withdraw the entire amount or extend the tenure in blocks of 5 years.

5. Is it mandatory to deposit every year?

Yes, you must deposit at least ₹500 every year to keep the account active.

How Does PPF Help?

  • Long-Term Savings: Encourages disciplined and consistent savings for future financial goals.
  • Risk-Free Returns: Backed by the Government of India, ensuring secure returns.
  • Tax Efficiency: Triple tax benefits - investment, interest earned, and maturity amount are all tax-exempt.
  • Wealth Accumulation: Compounding ensures steady growth over the tenure.