Amount Invested Vs Return
Net Return percentage
Increasing Investment percentage annually helps to achieve targets faster. 10% is suggested.
Public Provident Fund (PPF) is one of themost preferred investment options for risk-averse investors. This government-backed savings scheme was launched mainly to benefitsmall-scale investors. PPF provides guaranteed returns combined with tax benefits since it falls under the Exempt-Exempt-Exempt (EEE)category of income tax laws.
Those investing in PPF often want to know how much growththey can achieve during the investment tenure. However, thecalculations for the same could be difficult. This is when a PPFcalculator can come in handy. Using the PPF calculator, an investorcan easily calculate the annual PPF returns from periodiccontributions made to PPF account over a predetermined period.
The best part of a PPF calculator is that there is noneed for separate bank-wise calculators since interest rates,maturity, withdrawal rules and taxation are decided by thegovernment.
Fisdom’s PPF calculator is a simple compound interestvariant. This easy-to-use PPF calculator requires investors toinput the below listed data set:
You will have to fill in the yearly deposit amounthere. Depending upon the frequency of your deposits, you canfill in the yearly PPF deposit amount. For Ex: If the depositamount is Rs. 500 and the deposit frequency is monthly, totalPPF deposit for the year will be Rs. 6,000.
Choose the duration for which you expect to beinvested in PPF. You can choose any tenure between 1 to 30years.
The current rate of interest as decided by theGovernment is prefilled for you.
After providing the above-mentioned data into the PPFcalculator, it gives instant information regarding PPF maturityamount, PPF interest earned, total PPF investment and the netreturn percentage.
Just like any investment tracker, a PPF calculatoraddresses investor concerns regarding the investment. Thecalculator keeps a track of the growth that can be achieved onthe invested capital. Investors who already have a PPF accountwould know that interest rates may change every month.
It is now easier to keep a track of changing interestrates. With the help of a public provident fund calculator,account holders can easily find out monthly changes in interestrates.
Recommended read – How to open a PPF account?
There are some key rules that must be followed whilecalculating PPF returns:
Since PPF is compounded annually, the longer oneremains invested in it, the higher the benefit to be availed. Tounderstand the benefit of compounding with regards to PPFcalculation, the following table shows an example of theprincipal invested, interest earned and maturity value to bereceived for 15, 20 and 30 year tenures.
|Investment Period||Yearly Investment||Total PPF Investment||Total Interest Earned||Maturity Value|
|15 years||Rs. 60,000||Rs. 9,00,000||Rs. 7,08,120||Rs. 16,08,120|
|20 years||Rs. 60,000||Rs. 12,00,000||Rs. 14,52,088||Rs. 26,52,088|
|30 years||Rs. 60,000||Rs. 18,00,000||Rs. 43,80,364||Rs. 61,80,364|
Assumptions in this PPF calculation are that the annualinvestment amount is Rs. 10,000 and the ongoing PPF interestrate is 7.1% per annum (since current PPF interest rate for Q1of FY 2021-22 is 7.1%).
Here are some of the important aspects related to PPFcalculation that investors must be aware of:
The benefits of using an online PPF calculator arelisted below:
PPF calculators can provide an insight on variousaspects of a PPF investment. This makes it easier for investorsto make calculated decisions for appropriate financial planningin the long term. It is important to enter accurate detailsabout your PPF investment to get back accurate results onexpected returns.
Yes. The investment in PPF up to Rs 1.5 lakh annually, the interestearned and the maturity amount are all tax-free.
he maturity period of PPF investment is 15 years and is calculated fromthe end of the financial year when the first investment is made. Forexample, if an investor makes the first investment in June 2021, thenthe first full year of investment would be April 2022 to March 2023 andthe account would mature in March 2037.
If you miss your PPF contribution for a year, the account will becomedormant. You can activate it by paying a minimum contribution of Rs. 500and a penalty of Rs. 50 for each year that the contribution is missed.
Many banks allow PPF investments to be made online using the bank’swebsite or net banking services.
No. Only one PPF account is allowed per subscriber. However, you can opena PPF account in your minor child’s name.