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# PPF Calculator

₹500
₹1,50,000

yrs
15 yrs
50 yrs

## What is the PPF scheme?

The Public Provident Fund (PPF) scheme is a sovereign backed, tax free, long-term saving-cum-investment scheme that offers a unique combination of safety, stability, returns, tax savings and long-term wealth creation. Maximum investment allowed in PPF is up to ₹1.5 lakh per year with a minimum amount of ₹500 per year. The lock-in period is 15 years, and it can be extended indefinitely in blocks of five years. There is an option of partial withdrawal after 5 years, subject to conditions. You can take a loan on your PPF account between the 3rd and 5th years. The current interest rate on PPF is 7.1%. The interest rate is set by the government every quarter. The Exempt-Exempt-Exempt (EEE) scheme, which allows investors to avail a tax exemption on the deposited amount, the cumulative amount and the interest earned on the PPF account, at the time of withdrawal. PPF accounts cannot be held jointly, though you can make a nomination.It can be a tool to build a corpus for various life goals such as retirement, children’s education, etc.

### How does the PPF calculator work?

An investor can use PPF calculator to find out his/her amount on maturity based on tenure, interest rate, frequency of investment and the investment amount. The online calculator generates the output instantly, free of charge for any number of iterations.

### Formula for calculating the interest on PPF:

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

where,

• ‘F’ stands for the maturity amount of the PPF
• ‘P’ stands for the annual instalments paid
• ‘n’ stands for the number of years or tenure of the PPF
• ‘i’ stands for the rate of interest.

### It should be noted that the interest on PPF is compounded on a yearly basis

The investor has to just enter the investment amount and tenure of the PPF and the calculator would generate the amount on maturity.

### Who is eligible for a PPF account?

Any Indian citizen can open a PPF account.

### How can I make deposits in my PPF account?

You can make deposits every month or in a lump sum through cash, cheque, DD or online transfer.

### Can I make my deposits in PPF online?

Yes, you can invest in a PPF account online.

### Can I open more than one PPF account?

No. There can be only one PPF account per individual. However, you can open a PPF account in your minor child’s name.

### Where can I open a PPF account?

All the nationalised banks offer the facility to open PPF accounts. Besides, a number of private banks are also entitled to offer the PPF account facility.

### How can I open a PPF account?

In order to open a PPF account, an applicant will be required to submit KYC documents in addition to a duly filled and signed application form. For KYC, the applicant will be required to submit a proof of identity, address, and signature. After submitting these documents and the form, the amount towards the opening of the PPF account can be deposited.

### What happens if I miss my contribution for a year?

If you miss making your contribution for a year, the account will become dormant.
You can make it active by paying a minimum contribution of ₹500 and penalty of ₹50 for each year you missed making a contribution.

### How is the PPF maturity period calculated?

The maturity period is 15 years from the end of the financial year when the first investment is done. For instance, if you made the first investment in December 2021, then your first full year of investment would be April 2022 to March 2023 and your account would mature in March 2037.

### What is the interest rate for PPF?

The Ministry of Finance is responsible for setting the interest rate for PPF. This rate is set every year. Currently, the PPF interest rate has been reduced from 7.9% to 7.1%.

### Which amount is taken into consideration for calculating the interest?

The interest on PPF is calculated on the lowest balance in the account between the closing balance on the 5th day of a month and the closing balance on the last day of the month.

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Disclaimer:
This calculator is meant to be used for indicative purposes only. It is designed to assist you in determining the appropriate amount of prospective investments. This calculator alone is not sufficient and shouldn’t be used for the development or implementation of any investment strategy. Upstox does not take the responsibility/liability nor does it undertake the authenticity of the figures calculated therein. Upstox makes no warranty about the accuracy of the calculators/reckoners. The examples do not claim to represent the performance of any security or investments. In view of the individual nature of tax consequences, each investor is advised to consult his/her own professional tax advisor before making any investment decisions on the basis of the results provided through the use of this calculator.