PPF Calculator

Invested amount
Total interest
Maturity value
Total investment
Total interest

A Surprising Story: The "Boring" Investment That Won the Race

Sunita and her friend Rahul both started their investment journeys together. Rahul, attracted by high-risk, high-return stocks, often made fun of Sunita's "boring" choice: investing the maximum ₹1,50,000 in her PPF account every single year. For years, Rahul's portfolio saw wild swings, with big gains one year and sharp losses the next.

Fifteen years later, they met to discuss their finances. Rahul's portfolio, after all the ups and downs, had grown to a respectable amount. But when Sunita showed him her PPF statement, he was speechless. Her consistent, tax-free, and risk-free investment had grown into a massive corpus of over 40 Lakhs. The calculator showed that the power of guaranteed compounding, combined with tax benefits, had quietly and steadily outperformed many of his riskier bets. It was a surprising lesson for Rahul: sometimes, the slow and steady tortoise truly does win the race.

How can a PPF calculator help you?

A PPF calculator is a valuable financial tool that helps you project the future value of your PPF investment. It allows you to experiment with different investment amounts and tenures to understand how your money can grow over time. This helps in long-term financial planning for goals like retirement, children's education, or creating a substantial tax-free corpus.

Formula used for calculating PPF

The maturity value of a PPF account is calculated using the compound interest formula. However, the interest is calculated monthly on the lowest balance between the 5th and the last day of the month, and then credited to the account at the end of the financial year. The formula for the future value (FV) is:

FV = P [({(1+i)^n}-1)/i]

Where P = Principal investment, i = Rate of Interest, and n = Time period in years. This calculator simulates this year-on-year calculation for you.

How to use PPF calculator?

Using our PPF calculator is extremely simple:

  1. Yearly Investment: Use the slider to set the amount you wish to invest each year.
  2. Time Period: Adjust the slider to select the total investment tenure (minimum 15 years).
  3. Rate of Interest: Set the expected annual interest rate.

The calculator will instantly update the maturity value, total investment, and total interest earned.

Advantages of using PPF calculator

  • It provides a clear estimate of your future savings, helping you plan your financial goals.
  • It saves you from complex manual calculations and provides error-free results instantly.
  • You can try different scenarios to find the investment strategy that best suits your needs.
  • It helps you visualize the power of compounding in a risk-free, tax-saving instrument.

FAQs

What is the minimum and maximum investment in PPF?

You can invest a minimum of ₹500 and a maximum of ₹1,50,000 in a single financial year.

What is the lock-in period for a PPF account?

The PPF account has a mandatory lock-in period of 15 years. After maturity, it can be extended in blocks of 5 years with or without further contributions.

Are PPF investments and returns taxable?

No. PPF enjoys an EEE (Exempt-Exempt-Exempt) status. The amount you invest is eligible for tax deduction under Section 80C, the interest earned is tax-free, and the maturity amount is also completely tax-free.

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