## Public Provident Fund (PPF)

Invest in a long term savings instrument offering tax exemption on both, principal as well as interest

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# Public Provident Fund (PPF) Calculator

Public provident fund (PPF) is one of the government-backed investment instruments preferred by individuals planning to save regularly for their retirement. The long-term investment plan offers decent interest rates and usually helps your investments beat inflation while keeping them safe.

If you’re either an investor in PPF or looking to make an investment in it, you can use a PPF calculator to find the maturity amount as well as the amount you need to invest to reach your financial goals.

15
7.10%
Maturity Amount 10,50,000
Total Deposit 10,50,000
Total Interest 10,50,000

### What is a PPF calculator?

A PPF calculator is a simple online tool that helps investors calculate the amount they will receive at the time of maturity, which usually happens at the end of 15 years of investing. The tool also allows you to calculate the amount you need to invest either as lump-sum or as periodic contributions to PPF to meet your target corpus at the time of retirement or to realise any other financial goal.

### Formula used for calculating PPF

A PPF calculator uses a simple formula to determine the maturity amount. Here’s the formula for calculating PPF when you want to invest just once in PPF:

A = P * [(1 + r/n) ^ (n*t) - 1]

Where:

• A is the maturity amount
• P is the principal amount
• r is the annual interest rate
• n is the number of times interest is compounded per year
• t is the number of years

Please note that the interest rate on PPF keeps changing and is dependent on macroeconomic situations.

### How to use the PPF calculator?

Using a PPF calculator is really simple. For calculating the maturity amount on a PPF calculator, you just need to enter details such as the contribution amount and frequency. Rate of interest is auto updated, and the tenure of the investment is 15 years.

Once all the details are entered, the PPF calculator does the math and provides you with the exact amount that you will receive on maturity, provided the interest rate doesn’t change and you continue to make investments as per the information you fed to the calculator. The calculator saves you time and the manual effort that goes into calculating the maturity amount using a PPF calculator.

The following are the advantages of the PPF calculator:

• Accuracy: You can use the PPF calculator to get precise calculations related to maturity amounts. However, you will need to provide inputs like investment amount and frequency. Rate of interest is auto updated, and the tenure of the investment is 15 years.
• Time-saving: Public provident fund calculator calculates results in a snap. This saves you the need for manual calculations even though you know the formula.
• Financial planning: By providing a clear projection of potential returns, a PPF interest rate calculator assists in financial planning and goal setting.
• Flexibility: You can experiment with various scenarios by adjusting parameters like contribution frequency or investment amount to meet your target corpus.
• Convenience: You can easily access a PPF calculator online. The calculator offers you the convenience to calculate PPF investments anytime and anywhere you want.

• Comparison tool: You can use the calculator to compare the potential returns of PPF with other investment options to get an idea of which investment tool can provide you with the best returns.
• Scenario analysis: The PPF calculator allows you to experiment with different scenarios by adjusting variables like investment amount and contribution frequency.
• Goal setting: An online PPF calculator helps you set realistic financial goals by demonstrating the potential outcomes of your PPF investment. These goals can include long-term objectives such as retirement savings, purchasing a house, or building a corpus for your children's wedding.
• Risk management: Understanding the projected returns of your PPF investment allows you to manage risk effectively by diversifying your investment portfolio into other investment instruments.

• How is the interest on PPF calculated?

The government notifies the interest rate on PPF quarterly. It is aligned with rates on government securities. Moreover, the interest is calculated based on your account balance before the fifth of each month. To maximise benefits, ensure deposits are made before this date; otherwise, deposits made later won't get interest for that month.

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

The minimum lock-in period for PPF is 15 years, and you can extend it in blocks for another five years. However, you can withdraw partial amounts from your PPF account after completing five years of investing in the PPF scheme.

• What is the minimum amount required to start investing in PPF?

PPF is one of the investment schemes with a low entry ticket. You can invest as little as ₹500 to open a PPF account with Axis Bank.

• How much I will get in PPF after 15 years?

At the end of the 15 years, you will receive the investment amount as well as the interest on the investment amount, which was compounded annually for all these years. It depends on your investment amount and prevailing interest rate.

• Is PPF investment is Tax-free?

Yes, both the interest earned and the maturity amount on investments up to ₹1.5 lakh in a year in PPF are tax-free. But that’s not all as contributions in a PPF account also qualify for deductions while interest earned is tax-free.

• How is the PPF maturity period calculated?

The PPF maturity period is fixed at 15 years from the end of the financial year in which the account was opened. After maturity, options include withdrawal, extension or partial withdrawals. For example, if you made your first investment in June 2024, your account would mature in March 2040.

### Disclaimer

• The information provided in this calculator is not research material carried out by Axis Bank and it does not represent views of Axis Bank in any manner whatsoever.
• The information contained in here is general information. Neither does it constitute any offer, invitation, recommendation or solicitation to any person to enter into any transaction described therein or any similar transaction with Axis Bank nor does it constitute any prediction of likely future movements. The information has not been prepared with regard to any person or group of persons' investment objectives, financial situation, experience or particular needs and the information should not be construed as investment or saving recommendation or advice.
• The Bank accepts no responsibility and liability for any errors, omissions or inaccuracies in the information provided here. The Bank shall not be liable for any loss or damage arising directly or indirectly resulting from the use of information contained herein, or the inability to use such information or in connection with any error, imperfection, inaccuracy, mistake, defect, interruption, delay in operation or incomplete transmission, line or system failure.
• Axis Bank, its affiliates/ group companies shall not be liable, responsible of answerable in any manner, for any kind of loss or damage that may arise to any person due to any kind of error in the information contained here or otherwise.