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PPF Calculator

Calculate your Public Provident Fund returns with current interest rates and tax benefits

Calculate PPF Returns

Annual limit: ₹500 - ₹1,50,000

%

Current rate: 7.1% per annum (as of 2024)

Minimum tenure: 15 years (extendable in 5-year blocks)

%

Optional: For inflation-adjusted returns (use 0% to disable)

Investment Analysis

Example Calculation

Maximum Annual Investment

Annual Deposit: ₹1,50,000

Interest Rate: 7.1% per annum

Tenure: 15 years

Total Investment: ₹22,50,000

Returns Calculation

FV = ₹1,50,000 × [((1+0.071)^15 - 1) / 0.071] × (1+0.071)

FV = ₹1,50,000 × 25.129 × 1.071

Maturity Value = ₹40,39,517

Interest Earned = ₹17,89,517

Effective Return = 79.5%

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PPF Key Features

💰

Tax Benefits

Triple tax benefit

EEE (Exempt-Exempt-Exempt)

🛡️

Safe Investment

Government guaranteed

No market risk

🔒

Long-term Wealth

15-year lock-in

Disciplined investing

Investment Limits

Maximum Limit

₹1,50,000 per annum

Minimum Limit

₹500 per annum

Lock-in Period

15 years mandatory

PPF Tips

Deposit before 5th of month for maximum interest

Start deposits in April for full year interest

Partial withdrawal allowed after 5 years

Loan facility available from 2nd to 6th year

⚠️

Only one PPF account per individual allowed

Understanding Public Provident Fund (PPF)

What is PPF?

Public Provident Fund (PPF) is a government-backed savings scheme introduced in 1968 to encourage small investors to make long-term investments. It offers attractive interest rates with complete tax exemption under the EEE (Exempt-Exempt-Exempt) category.

Key Benefits

  • Triple tax benefit: Investment, interest, and maturity are tax-free
  • Government-guaranteed returns with no market risk
  • Attractive interest rates (currently 7.1% per annum)
  • Loan and partial withdrawal facilities available

How PPF Returns are Calculated

FV = P × [((1+r)^n - 1) / r] × (1+r)

  • FV: Future Value (Maturity Amount)
  • P: Annual deposit amount
  • r: Annual interest rate (as decimal)
  • n: Number of years

Note: PPF uses annuity due formula as deposits are typically made at the beginning of each period for maximum interest benefit.

Who Can Invest?

  • Any Indian citizen (resident or NRI with existing account)
  • Guardian can open account for minor child
  • Only one PPF account per individual allowed
  • Joint accounts are not permitted

Important Rules

  • ⚠️Minimum ₹500 annual deposit to keep account active
  • ⚠️Penalty of ₹50 per year for discontinued accounts
  • Account can be extended in 5-year blocks after 15 years
  • Interest calculated on lowest balance between 5th and end of month
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