# PPF Calculator

Yr
%

The first step towards financial planning is accumulating savings. You will find a lot of options for savings accounts, but if you are looking for the guaranteed risk-free returns then PPF is the right choice for you. PPF account refers to a Public Provident Fund account.

Handling calculations may not be easy for many of us. If you are someone who is planning to invest in PPF and not sure how much to invest or how much returns you may get on investing a certain amount, then our 5paisa PPF calculator is here for you.
Once you decide the amount you can invest on a regular basis, the 5paisa PPF calculator considers the tenure to be 15 years and the prevalent interest rate to calculate the returns.

5paisa’s PPF calculator is digitized tool that requires you to input three key values into the tool:
●    Frequency of investment
●    Yearly deposit amount
●    Interest rate
The interest on PPF is compounded annually. The formula for this is:
F = P[({(1+i)^n}-1)/i]
Here, F = Maturity proceeds of the PPF P = Annual installments n = Number of years i = Rate of interest/100
For example, if you make annual payments of Rs.1,00,000 towards your PPF investment for 15 years at 7.1%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 .

5paisa PPF calculator has a self-explanatory and user-friendly interface. However, if you are a beginner to using online calculators, here’s a simple step-by-step procedure to make use of the calculator:
Step 1: Under the ‘Frequency of Investment’ field, you will find a drop-down menu. Click on the drop-down menu to find the options, such as monthly, quarterly, half-yearly, and yearly. Based on how often you can make deposits into the PPF account within a financial year, choose an option from the drop-down menu.
Step 2: Under the label ‘Yearly Deposit Amount’, enter the amount you are planning to deposit in your PPF account over a financial year. Note that the maximum amount you can deposit in the PPF account is Rs.1.5 lakh per financial year.
Step 3: The current interest rate is provided by default for your information.
Step 4: Click on the blue circle and drag the pointer to the right based on the number of years you wish to stay invested in the PPF account. The default choice here is 15 years as this is the minimum period of investment. At the right end of the slide, you can see the numeric value of your selection.
Step 5: Our 5paisa PPF calculator automatically calculates the value at maturity from the PPF account you can expect based on the values you have provided and the interest rate applicable on the present day.

Using a 5paisa PPF calculator to estimate the returns can help you to plan your investments because:
●    The calculator resolves your many questions on how the account works.
●    You can have a clear picture of how much returns you can expect on investing a certain amount.
●    You can use the calculator over and over again until you strike a balance between how much you must invest to get the desired returns.
●    Since this is automated, manual calculations can be skipped and errors can be avoided.
●    You can make use of the calculator at the tax-planning stage so you can plan your investments better.
●    Since there is an option to extend the PPF account over and above the lock-in period, you may get an idea of how much time you have for retirement and how much wealth you can grow until then.

## FAQ’s

PPF Account is a savings scheme that offers stable and fixed returns, long-term investment opportunity and tax benefits. It is a secure investment that may be used for long-term needs such as children’s higher studies or your retirement corpus.

Benefits of PPF include guaranteed and fixed returns; tax benefits at the time of initial investment, interest accrual and withdrawal and opportunity to invest for the long term.

The interest rate on PPF is announced by the government every quarter. It is linked to the rates on government securities and changes accordingly. The interest on the PPF is calculated based on your balance in your account before the fifth of every month. Currently, the rate on PPF is 7.1%.

The lock-in period is 15 years, and it can be extended in blocks of five years indefinitely. There is the option of partial withdrawal after 5 years, subject to conditions.

The minimum investment amount to start investing in PPF is Rs 500.

Yes. The investment in PPF up to Rs 1.5 lakh annually, the interest earned and the maturity amount are all tax-free.

The maturity period is for 15 years from the end of the financial year when the first investment is done. For instance, if you made the first investment in June 2022, then your first full year of investment would be April 2023 to March 2024 and your account would mature in March 2038.

If you miss making your contribution for a year, the account will become dormant. You can make it active by paying a minimum contribution of Rs. 500 and penalty of Rs. 50 for each year you missed making a contribution.

No. There can be only one PPF account per subscriber. But you can open a PPF account in your minor child’s name

### Start Investing Now!

Open Free Demat Account in 5 mins