PPF Calculator
A PPF calculator is a tool that estimates the maturity value of a Public Provident Fund (PPF) account based on annual contributions, the prevailing interest rate, and the investment tenure. It helps savers plan their long-term savings and understand how PPF compounding works.
What Is the PPF Calculator?
PPF deposits earn compounded annual interest. The interest rate is set by the government quarterly (currently 7.1% per annum). The PPF calculator takes:
– Annual deposit amount
– Number of years
– Interest rate
– Whether the deposit is at the beginning or end of each year
And outputs:
– Total amount invested
– Total interest earned
– Maturity value at the end of the tenure
PPF Rules Relevant to Calculations
– Minimum deposit: Rs 500 per year
– Maximum deposit: Rs 1.5 lakh per year (per account)
– Interest is calculated on the minimum balance between the 5th and last day of each month
– Deposits made before the 5th of a month earn interest for that month
– Interest is credited annually on March 31
PPF Maturity Example
Annual deposit: Rs 1.5 lakh
Interest rate: 7.1% per annum
Tenure: 15 years
Total deposited: Rs 22.5 lakh
Maturity value (approximate): Rs 40.68 lakh
Interest earned: Rs 18.18 lakh
The maturity amount is entirely tax-free (EEE status: exempt on contribution, accumulation, and maturity).
PPF Extension After 15 Years
After the 15-year maturity, PPF can be extended in 5-year blocks:
– With further contributions (earning interest on full balance)
– Without contributions (balance continues to earn interest)
A PPF calculator can model both scenarios to show the extended corpus.
Key Takeaways
– PPF calculator estimates maturity corpus based on annual deposits, 7.1% interest, and 15-year tenure
– PPF is an EEE instrument: investment is tax-deductible (80C), interest is tax-free, maturity is tax-free
– Maximum annual investment is Rs 1.5 lakh; deposits made before the 5th earn more interest
– After 15 years, extension in 5-year blocks allows continued compounding
– Free PPF calculators are available on India Post, SBI, and major bank websites
