PPF Calculator

PPF Calculator (Public Provident Fund Calculator) is a financial tool that calculates the maturity amount and interest earned on a PPF investment. It helps investors plan and manage their savings by providing insights into the potential returns and growth of their PPF contributions over a specified tenure.

What is PPF (Public Provident Fund)?

PPF, or Public Provident Fund, is a long-term savings scheme backed by the government of India, offering tax benefits and guaranteed returns. Investors can contribute annually to their PPF account for a fixed period of 15 years, with the option to extend in blocks of 5 years. The interest rate is determined by the government and is compounded annually.

PPF Calculator Formula

The formula to calculate the maturity amount for a Public Provident Fund (PPF) is as follows:

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

Where –

• A is the maturity amount
• P is the annual contribution
• r is the annual interest rate (in decimal)
• n is the tenure (in years)

The interest can be calculated by subtracting the total contributions from the maturity amount:

I = A − (P * n)

How to Calculate Maturity Amount for PPF ?

To compute the maturity amount for a Public Provident Fund (PPF), use the formula: A = P * [(1 + r)^n – 1] / r. Here, P represents the annual contribution, r is the annual interest rate (in decimal), and n is the tenure in years (usually 15 years). This formula helps in determining the total amount you will receive at the end of the investment period.

Example:

If you invest ₹1,00,000 annually in a PPF account at an annual interest rate of 7.1% for 15 years, then the maturity amount will be:

A = ₹1,00,000 * [(1 + 0.071)^15 – 1] / 0.071 = ₹31,29,117.

You’ll receive ₹31,29,117 at the end of 15 years, which includes ₹16,29,117 as interest.

How to Use PPF Calculator ?

• Input Contribution Details: Enter the annual contribution, interest rate, and tenure into the PPF calculator.
• Review Results: The calculator instantly provides the maturity amount and interest earned.
• Adjust Parameters: Modify the annual contribution, rate, or tenure to compare different investment scenarios.
• Plan Investments: Use the PPF calculator to plan your investments and understand the potential returns.

Features of PPF Calculator

• Accurate Investment Planning: Precisely calculate the maturity amount and interest earned, aiding investors in planning their PPF investments for various contribution amounts, tenures, and interest rates.
• Dynamic Visualization: Instantly visualize the impact of changes in the annual contribution, tenure, and interest rate, empowering users with dynamic and insightful variations in maturity amounts.
• Responsive User Interface: Enjoy a seamless experience with a responsive interface that adapts effortlessly to different devices, providing accessibility and ease of use.
• Comprehensive Financial Insights: Gain comprehensive financial insights with a detailed breakdown of investment components, including contributions, interest, and maturity amount, enhancing financial decision-making.