How and Why Should You Use a PPF Interest Calculator?


How and Why Should You Use a PPF Interest Calculator?: Public Provident Fund or PPF is a government backed investment option that helps you save up for your retirement and build a corpus over a longer period of time.

How and Why Should You Use a PPF Interest CalculatorPPF is accompanied by financial tools such as the PPF interest calculator that helps you calculate your PPF interest returns with great ease. Through the use of the PPF interest calculator you can make your savings experience hassle-free.

Like the fixed deposit interest calculator, the PPF interest calculator considers factors such as interest rates, tenor, payout frequency and so on. However, these factors are decided by the government in the case of a PPF interest calculator. Due to the government’s involvement in decisions pertaining to PPFs, it is one the most secure forms of investment with minimal risks.

Features and Benefits of PPF Interest Calculator

Manually calculating the interest returns of your PPF account can be quite a task. Therefore, the use of a PPF interest calculator can ease the process and make it convenient for you.

Stated below are the features of a PPF interest calculator:

Approximate Calculations

By using a PPF interest calculator you can get an estimate of your returns at maturity. All you need to do is enter a few details such as the amount invested, the interest rate, tenor and the frequency at which the interest is compounded.

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Efficient and Time-saving

The use of a PPF interest calculator is much more efficient than making complicated calculations on your own. This helps you save time and also get results faster.

Easy Access

The PPF interest calculator is available for free and easy to access online. It does not require the payment of any additional charges.

These features of the PPF interest calculator provide benefits that help you make well-thought choices. The benefits of a PPF interest calculator are as follows:

Comparison and Analysis

Through the use of the PPF interest calculator you can derive values that will help you decide the amount you would like to invest that best suit your financial needs.

Instant Results

Since the PPF interest calculator provides instant results at the click of a button, you need not go through the hassle of waiting for the results for too long.

Free and Unlimited Usage

The PPF interest calculator can be accessed as many times as you require without a limit on usage. You can make use of the calculator multiple times without incurring any additional charges.

How To Calculate the Interest Returns Earned on PPF?

The formula to calculate PPF is given below:

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


  • A is the amount that you will receive at maturity
  • P is the amount that you initially deposit
  • I is the rate of interest
  • N is the tenure for which you invest your money.
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How to Use the PPF Interest Calculator

The PPF interest calculator is easy to use and can get you results quickly. The Calculator makes use of four components to derive final values. Those vital components are deposit amount, frequency of investment, tenor and rate of interest. In order to use a PPF interest calculator you will be required to enter the following details:

Deposit Amount: Deposit amount is the amount you are willing to invest in a PPF account. The minimum amount that you can invest in a PPF is ₹500. You can invest up to ₹1,50,000 in a financial year.

Frequency of Investment: Frequency of an investment is the interval at which you would like to receive your returns. You can choose to receive your interest returns monthly, quarterly, half-yearly or annually.

Tenor: The minimum tenure of a PPF is 15 years. You can also choose to extend the tenure in blocks of 5 years.

Rate of Interest: The current rate of interest of a PPF is 7.1%. It is decided by the government once every quarter.

Once you enter all the aforementioned details, the PPF interest calculator provides you with information regarding the maturity amount that you will stand to gain at the end of your tenure, the interest amount earned and the net return percentage.

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One of the most striking features of a PPF is that it is categorised under EEE of the laws pertaining to income tax which means that the amount you invest, and the interest you earn at maturity are exempt from tax. Through the use of the PPF interest calculator you can get an estimate of your returns and carefully plan your investment.

In addition, you can make all decisions regarding your PPF such as partial withdrawal, loan against PPF and others once you get an idea of how much your expected return is. Hence, the PPF interest calculator helps you make informed decisions on how much to invest and try out various combinations to derive your desired outcome.


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