Public Provident Fund (PPF) Maturity Calculator

 

Vakilsearch's PPF Calculator can help you determine the return on investment and maturity amount of your PPF investment.

How does a PPF calculator work?

If you're planning to invest in PPF, but aren't sure how much to invest or what returns you'll receive, you can use our PPF calculator.
When you enter the amount you can afford to invest regularly, your returns are calculated based on a tenure of 15 years and a prevalent interest rate.
What is the PPF Calculator?

Here's how to use an online PPF calculator step-by-step


Step 1: Choose the frequency of investment from the drop-down menu. You can choose from options such as monthly, quarterly, half-yearly, and yearly. Select an option based on how often you can deposit money into the PPF account.
Step 2: There is a maximum amount of Rs.1.5 lakh you can deposit in a PPF account during a financial year.
Step 3: By default, the current interest rate is displayed.
Step 4: Drag the pointer to the right to select the number of years you wish to invest in the PPF account. 15 years is the default choice. This slide displays the numeric value of your selection.
Step 5: The maturity value of your PPF account is calculated based on your inputs and the current interest rate.


PPF Calculator: How Can It Help You?

A PPF calculator can help you plan your investments because:

  • The calculator answers many of your questions about the account.

  • You can calculate how much return you can expect when investing a certain amount.

  • You can use the calculator repeatedly until you find a balance between how much you need to invest and what you want to earn.

  • The automated nature of this process allows manual calculations to be skipped and errors to be avoided.

  • You can use the calculator to plan your investments more effectively during tax planning.

  • By extending the PPF account beyond the lock-in period, you can determine how much wealth you can accumulate until retirement.


How does a PPF work?

As a means of mobilizing small savings, the Public Provident Fund Calculator was introduced in India in 1968. Investing in savings-cum-tax savings vehicles allows you to save on taxes while building your retirement corpus. Tax-free returns make it a popular savings avenue for many investors. For those who wish to save taxes and earn guaranteed returns, PPF accounts are a good investment option.

PPF benefits

PPF investments are low risk since they are backed by the government.
The second method is to open a PPF account at a nationalized bank, a public bank, a post office, or a select private bank.
Third, while PPFs are locked in for 15 years, they can be withdrawn or taken out as loans after 7 years. Bank FDs offer lower returns than PPFs.
PPF deposits are exempt-exempt-exempt (EEE). Interest earned, principal invested, and maturity proceeds are tax-free. The PPF account calculator of a spouse or child is also tax-free.

What is the calculation for PPF interest?

The interest on PPFs is compounded annually. F = P[((1+i)*n)/i].
i = Interest rate/100, F = Maturity proceeds, P = Annual installments, n = Number of years, F = Maturity proceeds, P = Annual installments

Your maturity proceeds will be Rs. 31,17,276 if you pay Rs. 1,00,000 annually for 15 years to your PPF investment.

Options for alternative investments

PPF Section 80-C provides EEE benefits (Exempt, Exempt, Exempt). Investing up to Rs. 1.5 lakhs annually, earning returns, and receiving the corpus upon maturity are tax-free. Is there anything that compares to this? The answer to your question is ELSS. ELSS doesn't have a lock-in period, but it can be viewed as a long-term investment (*5 years). By investing for a long time, inflation-beating returns are possible.
Location: India

Comments

  1. Legal & Compliance Services25 February 2025 at 22:44

    Your blog is truly insightful and well-written. The way you present information is impressive! Thanks for sharing your expertise. Also, if anyone needs AIF registration services, feel free to reach out. Looking forward to more valuable content from you!

    ReplyDelete

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