PPF Calculator
PPF Calculator is a financial tool that helps in determining the returns on the investments made in the PPF Account. Using this calculator is easy and free of cost. All you need to provide is a few details and you will get the instant results. This online tool facilitates you in making a smart investment decision and doing effective tax planning.
The formula used for calculating PPF
The interest on PPF is calculated using a very simple formula. The formula can be expressed as follows:
F = P[{(1+i) n-1}/i]
where,
‘F’ stands for the maturity of the PPF
‘P’ stands for the annual installments paid
‘n’ stands for the tenure/total number of years
‘i’ stands for the rate of interest
To make you easily understand how this calculator works, check the below example-
Example: Suppose, an individual pays an annual amount of Rs. 1,00,000 in their PPF investment for 15 years at an interest rate of 7.60% then his/her maturity sum at the closing year will be equal to Rs. 28,32,196. Out of the maturity amount, the percentage of contribution is 53% and interest earned is 47%.
| Year | Opening Balance (Rs.) | Investment (Rs.) | Interest Received (Rs.) | Closing Balance (Rs.) | The maximum amount of loan that can be availed (Rs.) | The maximum amount of loan that can be withdrawn (Rs.) |
| 1 | 0 | 1,00,000 | 7,600 | 1,07,000 | 0 | 0 |
| 2 | 1,07,600 | 1,00,000 | 15,778 | 2,23,378 | 0 | 0 |
| 3 | 2,23,378 | 1,00,000 | 24,577 | 3,47,955 | 26,900 | 0 |
| 4 | 3,47,955 | 1,00,000 | 34,045 | 4,82,000 | 55,845 | 0 |
| 5 | 4,82,000 | 1,00,000 | 44,232 | 6,26,232 | 86,989 | 0 |
| 6 | 6,26,232 | 1,00,000 | 55,194 | 7,81,426 | 1,20,5003,13,116 | 0 |
| 7 | 7,81,426 | 1,00,000 | 66,988 | 9,48,414 | 0 | 1,73,978 |
| 8 | 9,48,414 | 1,00,000 | 79,679 | 11,28,093 | 0 | 2,41,000 |
| 9 | 11,28,093 | 1,00,000 | 93,335 | 13,21,428 | 0 | 3,13,116 |
| 10 | 13,21,428 | 1,00,000 | 1,08,029 | 15,29,457 | 0 | 3,90,713 |
| 11 | 15,29,457 | 1,00,000 | 1,23,839 | 17,53,296 | 0 | 4,74,207 |
| 12 | 17,53,296 | 1,00,000 | 1,40,850 | 19,94,146 | 0 | 5,64,047 |
| 13 | 19,94,146 | 1,00,000 | 1,59,155 | 22,53,301 | 0 | 6,60,714 |
| 14 | 22,53,301 | 1,00,000 | 1,78,851 | 25,32,152 | 0 | 7,64,729 |
| 15 | 25,32,152 | 1,00,000 | 2,00,044 | 28,32,196 | 0 | 8,76,648 |
To enjoy this computing tool to the maximum, you need to understand how it works. It is user-friendly and a great tool to calculate return on the investment made into the PPF scheme. While using the calculator, users need to put the values such as total amount invested (yearly or monthly), rate of interest, tenure of investment within specific columns to arrive at the result. Once you put all the values in the calculator, the total maturity amount will be calculated within seconds.
Advantages of using an online PPF calculator
The list below demonstrates the benefits of using PPF calculators online-
- This online tool gives a clear idea to the investor about how much interest can be earned with the investment of a certain amount of money.
- It helps an investor in deciding on the investment horizon, for how long should the investment be held to achieve the investment goal.
- This calculator provides the schedule of investment in advance (as shown above), this helps in planning the yearly amount to be invested, loan that can be availed, and the amount that can be withdrawn.
