How to Calculate PPF Returns and Maturity Amount


The Public Provident Fund scheme which is abbreviated as the PPF is the most popular long term investment-cum-saving product which is due to the combination of the returns, safety as well as a tax saving plans. PPF was first introduced by the Finance Ministry’s National Savings Institute to the people in the year 1968 and since then it is known for being one of the most popular saving and investing plans. And since then, it has turned out to be one of the favourite saving plans among the people. Check PPF Calculator and also get the guide on how to calculate PPF maturity amount over the next 50 years on your PPF investments.

The PPF is being utilised by the people by deducting a sum of amount from their salary and saving it as their retirement plan. They usually save it for a long term and regardless if you are working in the same company or have changed the company, your PPF will be deducted from your salary account and will be invested to your PPF account as it will remain unchanged throughout your life.

The maturity age for the PPF will be around 15 years and if required, you can even extend your tenure period for the maturity of your PPF. And with such tax benefits and attractive interest rates, the PPF is one of the best ways to invest your money for a lump sum return. Below is the Formula of PPF Calculator Online.


PPF Calculator Online Formula:

A = P(1+r)^t

Where, A= PPF Maturity Amount,

P=PPF Principal amount invested,

R= PPF rate of interest,

T=Time period

For example, if you make annual payments of Rs.1,00,000 towards your PPF investment for 15 years at 8.0%, your maturity proceeds at the end of 15 years would be Rs. 31,17,276 

Investment Time Total PPF Investment Earned Interest Maturity Value
15 Years Rs. 1.5 lakh Rs. 1.4 lakh Rs. 2.9 lakh
20 Years Rs. 2 lakh Rs. 2.88 lakh Rs. 4.88 lakh
30 Years Rs. 3 lakh Rs. 9 lakh Rs. 12 lakh

Popularity of PPF and the Reason Behind It:

One of the major reasons behind the popularity of PPF is its safety. It is one of the safest products to invest in as the PPF is backed and guaranteed by the government of India. The PPF comes with a 7.6% interest rate which is compounded annually. The government of India has set the interest of the PPF by every quarter. Investing in PPF has much more benefits than numerous other investment options as because PPF is exempted from taxes under the Section 80C of ITA (Income Tax Act) and moreover, the revenue from the PPF is from taxes too. Use PPF Calculator formula which is given above to get the total maturity amount & interest earned on PPF investment.

PPF Calculator Account Complete Guide:

PPF records can be opened a mail station, nationalized banks and significant private banks, for example, ICICI and Axis. In a few banks like ICICI and Axis, you can open a PPF account online through net banking also. When the record is opened, a passbook like the bank passbook is issued. All exchanges, for example, membership, intrigue, withdrawals, and so on are recorded in this passbook. A few banks essentially permit PPF passages to be seen online as opposed to issuing a passbook.

Any person who is an occupant of India can open a PPF account. PPF records can likewise be opened by guardians for their minor youngsters. NRIs can’t open PPF accounts. Notwithstanding, an occupant Indian who has turned into a NRI in the wake of opening a PPF record can proceed with the record till development. Opening of shared services and different records are not permitted.

How to Calculate PPF?

Enthusiasm on PPF is determined month to month on the most reduced harmony between the end of the fifth day and the most recent day of consistently, for example with the end goal of intrigue estimation, the sum that is saved into the record before fifth of the month is just considered. So on the off chance that any cash is stored on sixth of a month, at that point no premium will be paid on that sum in the separate month. Henceforth it is exhorted that stores ought to be made somewhere in the range of first and fifth of the month to boost the profits.

Assignment can be made for at least one people. In the event that, more than one individual is delegated as a candidate, the rate offer of every chosen one additionally should be indicated. Selections can’t be made for minor’s PPF account. Anybody, for example guardians, life partner, relatives, kids, companions, and so forth can be named. Structure E is utilized to add a chosen one to the PPF account.

Designation can be set aside a few minutes during the residency of record. Change, retraction or modification in assignment should be possible through Form F. Designation structures should be marked by the record holder and two observers. Mark of the chosen people isn’t required. The structure can be submitted at the fitting bank/post office branch.

Calculate PPF Interest Rates:

The office to benefit advance against the PPF record is accessible from a third money related year up to sixth budgetary year from the date of record opening. In another words, credit can be profited whenever after the expiry of one year from the finish of the monetary year wherein the record was opened yet before the expiry of five years from the finish of the budgetary year wherein the record was opened.

Structure D is required to be submitted to profit credit against the PPF account. Structures requires subtleties, for example, account number, sum being obtained, and so forth alongside the endeavour that the sum will be reimbursed with enthusiasm inside three years.

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The PPF record can be moved from bank to post office or the other way around. It can likewise be moved between various parts of a similar bank.

Pre-full grown conclusion of PPF record isn’t allowed inside 5 years of opening the record. From that point it must be shut on explicit grounds, for example, perilous afflictions influencing the record holder, life partner, subordinate youngsters or guardians. Supporting restorative archives must be delivered to help a case on these grounds.

In the event of death of PPF account holder, the returns of PPF record can be guaranteed by the chosen people/lawful beneficiaries. The inquirer ought to present an application alongside Form G. Structure G requires data relating to the case, for example, account number, chosen one subtleties, and so forth.

Features of PPF which you should know:

  • You can invest from Rs 500 to Rs 1, 50,000 every year in PPF.
  • The tenure for PPF is 15 years which can be extended for five more years if required.
  • Any Indian citizen can opt for the PPF account
  • You can apply for loan based on the PPF account on the third and fifth year and you can start making partial withdraw from PPF account from the seventh year
  • You can invest partially or in a lump sum amount in your PPF account.

So, if you are looking for one of the best investment option, then PPF is the right choice for you.

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