PPF Calculator – Why & How to Use it?

Mar 22nd 2024

PPF Calculator – Why & How to Use it? An effective tool for estimating the potential growth of Public Provident Fund (PPF) assets over time is the PPF calculator. It enables users to compute the contributions needed to reach particular financial objectives as well as the maturity amount, interest received, and contributions. Investors may make educated decisions and get the most out of their PPF funds by learning how to utilize a PPF calculator.

In this post, we'll define a PPF calculator and walk you through its processes for efficient use.

What is PPF Calculator?

An online financial tool known as a PPF calculator is made to assist people in estimating the possible growth and returns on their investments in a Public Provident Fund (PPF) account. It provides an estimate of the maturity amount and the interest received over time by taking into consideration a number of variables, including the contribution amount, interest rate, and investment length. People may use a PPF calculator to determine the future worth of their PPF investments, help them make wise financial decisions, and help them efficiently plan their savings.

How the PPF calculation is done?

A precise formula is used every time a PPF account holder determines the interest on their deposited money. Currently, the PPF plan gives a compounded annual interest rate of 7.1%. The Indian government controls the interest rate on a quarterly basis.

PPF Calculation Formula:

The following is the PPF interest calculation formula:

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

What each variable stands for is as follows:

Maturity amount, in A P: The initial investment's principal amount I: Expected interest rate of return N: Investment tenure or term

You may determine the predicted maturity amount of your PPF account based on the principle amount, anticipated interest rate, and investment length by entering the required variables into this calculation.

Here are several crucial considerations for PPF interest calculation:

  • The lowest balance that can be found in the PPF account is used to determine the PPF interest rate.
  • Every month, between the fifth and the final day, interest is calculated.
  • The money will receive interest for that month if the deposit is made before the fifth day of the month. If not, the interest will be determined using the PPF account's prior balance.
  • The PPF interest is not significantly affected by deposits made before or after the fifth of the month; the difference is normally a few hundred rupees.
  • It is suggested to make your annual lump-sum PPF investment before April 5th if you wish to do so.

How To Do PPF Calculation Online?

Use our PPF calculator to calculate PPF online by following these steps:

  • Visit the PPF calculator at Investkraft.
  • You may enter the necessary data for calculations in a variety of input forms on the calculator page.
  • Put the principle amount you intend to invest in your PPF account first. The initial deposit you want to make is this sum.
  • The chosen investment duration in years should then be entered. This is the length of time that you plan to keep your money in the PPF account invested.
  • Enter the anticipated interest rate that will be used for the PPF plan now. You may use the government's stated current interest rate or enter your own projected rate.
  • After providing all the relevant information, including the time period, select "Calculate" or a comparable option from the calculator page.
  • The data you supplied will be processed by our PPF calculator, which will then produce the determined results. The maturity amount, total interest earned, and a breakdown of contributions and interest by year may all be included in these findings.

Things to consider while using a PPF Calculator

If you are looking to use a PPF calculator online, here are a few things to consider.

  • Compounding Frequency: The PPF calculator assumes that interest is compounded once a year. This indicates that at the conclusion of each fiscal year, the interest is computed and added to the principal sum.
  • Interest Rate: Set by the Government: The interest rate that applies to PPF accounts is set by the government and is subject to quarterly revision. For the calculator to produce correct results, it's crucial to consider the current interest rate.
  • Annual calculation: The longer the investment term, the bigger the interest generated on the principle sum since compound interest is computed yearly. To receive an exact estimate of the maturity amount and interest generated, it is crucial to enter the appropriate investment duration.


1. What details do PPF calculators display?

Typically, a PPF calculator will include data on the initial balance, deposit amount, interest generated, closing balance, maximum loan amount, and maximum withdrawal amount.

2. Is it good to use a PPF calculator online?

Yes, it is a good idea to use a PPF calculator as it offers insights into prospective interest earnings, makes extending the PPF tenure decisions easier, aids in investment planning, and provides projections of the total investment made over the course of a financial year.

3. What are the main benefits of using a PPF calculator?

The use of a PPF calculator comes with several benefits, including providing estimations of the total investment made over the course of a financial year and offering insights into possible interest profits. It also simplifies decision-making for extending the PPF term.

The Conclusion

Using a PPF calculator comes with a lot of benefits like the ones given below:

  • Owners of PPF accounts can learn more about the possible interest returns on their main sum.
  • It makes deciding whether to prolong the PPF tenure easier.
  • By doing complex calculations on investment schedules, a PPF calculator makes it easier to prepare for yearly investments, loans, or withdrawals.
  • It offers an estimate of the total investment made over the course of a fiscal year.

Subscribe to our newsletter

Related Post

Reach out to our Experts if you have any Doubts

Like the best things in life, Consultations @InvestKraft are free

Drop a Mail or give us a Missed Call & Begin your Investment Journey here


Subscribe to our newsletter