PPF Calculator : Things to Know About Public Provident Fund (PPF)

Jun 8th 2024
Fixed Income
PPF Calculator 2024

PPF, also known as the Public Provident Fund, is one of India's most well-liked investment alternatives. The popularity of PPF may be attributed to several factors, including guaranteed returns, tax advantages on the amount invested, and tax-free returns.

However, several features of this tax-saving investment are not fully known, even though millions of Indians use PPF investments to reach long-term financial objectives.

PPF Calculator: To maximize your PPF investment, consider using a PPF calculator to estimate potential returns based on different contribution scenarios.

What is a Public Provident Fund (PPF)?

Public Provident Fund (PPF) is an important long-term savings option in India, backed by the government. It is a popular choice for both self-employed and salaried individuals, aiming to promote small savings. PPF accounts can be easily opened at designated banks and post offices nationwide. 

How are PPF and EPF Different from Each Other?

EPF (Employees' Provident Fund) and PPF (Public Provident Fund) are both government-backed savings schemes in India that promote long-term savings and offer tax benefits. However, they differ in several key aspects:






The scheme is available to all Indian citizens, including resident Indian citizens. It allows individuals to make voluntary contributions towards it

Employees who earn a salary of more than 15,000 rupees per month are required to contribute to the Employee Provident Fund, with some exceptions. Both the employer and employee contribute 12% of the employee’s basic salary, up to a maximum of 15,000 rupees towards the EPF. This scheme ensures that both the employer and the employee are actively involved in contributing towards the retirement savings of the employee


The minimum annual contribution for individuals is 500 rupees while the maximum contribution is 1.5 lakh rupees. Individuals are allowed to make a maximum of 12 contributions in a single year

The fixed contributions deducted from salary include 12% from the employee and 12% from the employer, with the employee contribution capped at 15,000 rupees. These contributions are made towards benefits such as provident fund and other social security schemes. They are mandatory and are deducted at the source before the salary is credited to the employee’s account

Maturity & Withdrawals

You can make partial withdrawals from the account after 5 years, but there are some restrictions. The maturity period is 15 years, so you have to keep the account active during this time

There is no specific deadline for maturity. It is possible to make partial withdrawals in specific circumstances such as unemployment or medical emergencies. The full amount can be accessed upon retirement or when permanently leaving the job

Interest Rates

The government reviews the fixed interest rate every quarter

The interest rate declared by the government plays a critical role in determining the cost of borrowing money and the return on investments for individuals and businesses. This rate affects various financial instruments such as savings accounts, bonds and loans, influencing the overall economic activity and investment decisions. Individuals and businesses need to stay informed about the changes in this interest rate to make well-informed financial decisions

Tax Benefits

Contributions made to retirement accounts and the interest earned on them are typically not subject to income tax. This tax advantage provides an incentive for individuals to save for their retirement and allows their investments to grow without being taxed annually

Investments made under Section 80C of the Income Tax Act are eligible for tax deductions, providing a benefit to taxpayers. However, it is important to note that any interest income accrued on withdrawals made before completing 5 years of service is subject to taxation


Due to restrictions on withdrawals before maturity, there is a reduction in the availability of liquid assets. This limitation can impact the ability to access funds and may result in a decrease in financial flexibility. It is important to consider these restrictions when planning for short-term cash needs and overall liquidity management

It's a long-term investment that usually offers higher interest rates but limits on PPF withdrawals. While there are some restrictions on withdrawals from a PPF, liquid investments typically allow for easier access to funds

Understanding PPF Investment With a Calculator

PPF calculators play a crucial role in helping individuals understand the potential growth of their PPF accounts. With attractive rates, tax benefits and government backing, the PPF is a popular investment option in India. By using PPF calculators, you can effectively plan your finances based on the projected growth of your account over time. 

What is a PPF Calculator and How Does it Work?

A PPF calculator is an online tool that calculates the maturity amount of your PPF investment. It takes into account various factors such as - 

  • Investment amount: It refers to the annual contribution made to a PPF account. This amount can vary depending on the individual’s financial capacity and investment goals. It is important to consider the maximum allowable contribution limit set by the government when making annual PPF investments
  • Investment tenure: It refers to the duration for which an individual plans to keep their money invested in the account. It is important to carefully consider the investment tenure as PPF has a lock-in period of 15 years and premature withdrawals or closure of the account can have certain implications. 
  • Interest rate: The PPF interest rate is determined by the government every quarter. As of May 17, 2024, the current interest rate stands at 7.1%

Benefits of Using a PPF Calculator

  • Plan your investments: Estimate the necessary amount to invest regularly to reach your desired maturity corpus using a well-structured investment plan
  • Compare scenarios: Compare different investment amounts and tenures to understand their impact on your returns
  • Tax planning: For effective tax planning, it is important to have an understanding of the total tax-exempt interest earned. This information can help individuals make informed decisions about their financial strategies and maximize their tax savings
  • Make informed decisions: Consider making use of PPF calculators to make well-informed decisions about whether or not PPF is suitable for your financial objectives

Using a PPF Calculator

To use our PPF calculator, simply follow these steps - 

  1. Visit the website offering a PPF calculator.
  2. Enter the investment amount you plan to contribute annually.
  3. Choose the desired investment tenure (minimum 15 years).
  4. The calculator will display the estimated maturity amount based on the current interest rate.
  5. Some calculators allow you to adjust the interest rate for scenario planning.

Important Considerations

  • PPF calculators give rough estimates and the actual maturity amount may slightly differ due to fluctuations in interest rates
  • The minimum and maximum investment limit for a PPF account in a financial year is 500 rupees and 1.5 lakh rupees respectively
  • Contributions can be made in smaller payments over the year, with the limitation of making a payment once per month


For long-term financial planning and wealth creation, a Public Provident Fund (PPF) account offers attractive interest rates, tax benefits and government backing. It is crucial to understand how factors like contribution amount, investment tenure and interest rates influence your returns. PPF calculators provide estimated maturity amounts and allow you to compare investment scenarios empowering you to make informed decisions. Start using our PPF calculator today to achieve your long-term financial goals with this secure and tax-saving investment option. 

Frequently Asked Questions (FAQs)

Q: What is a PPF calculator and how does it work?

A: The PPF calculator is a valuable resource for gaining insight into the potential growth of your PPF investment over time. By considering factors such as investment amount, tenure and prevailing interest rates, the toll provides an estimate of the maturity amount. It harnesses a formula that incorporates compound interest to project the potential growth of the investment

Q: Can I use a PPF calculator to plan for multiple PPF accounts?

A: No, most PPF calculators are set up to provide an estimate for a single account, but you can input different amounts to represent contributions to separate PPF accounts, such as for yourself, a spouse or a minor

Q: How secure is it to use online PPF calculators?

A: Generally, using PPF calculators from reputable financial institutions or established financial websites is considered secure. However, to ensure maximum security:

  • It is important to ensure that the website you use for calculators has HTTPS encryption, indicated by a lock symbol in the address bar. This encryption helps protect your data and information while using the calculator. Be cautious of using calculators on websites that do not have this secure encryption to safeguard your online activity
  • It is important to be cautious and not input any personal or sensitive information such as your PPF account number or login credentials into the calculator. This will help protect your data and reduce the risk of unauthorized access to your financial accounts. Keep in mind the potential security risks and always prioritize the safety of your confidential information
  • Avoid using calculators on websites that have lots of ads or seem suspicious to ensure your safety and protect your personal information

Q: Are there different types of PPF calculators available?

A: While the core functionality remains the same, PPF calculators might differ based on the financial institution or website offering them. Some calculators might offer additional features, such as:

  • Interest rate history: It shows the impact of past fluctuations on PPF returns, helping to understand the trend
  • Partial withdrawal options: Partial withdrawal options are often considered by calculators to predict the revised maturity amount after the lock-in period
  • Tax implications: Certain calculators can give a general understanding of the tax advantages related to PPF investments

Q: What are the limitations of using a PPF calculator?

A: Limitation of using PPF Calculator;

  • Estimated Values: The calculator offers estimates using the provided information and the current interest rate, but actual returns might differ slightly as a result of future interest rate fluctuations 
  • Market Fluctuations: PPF is indeed known for its stability but it is important to recognize that market fluctuations can indirectly influence interest rates. This aspect is not factored into the calculator’s projections, so it is essential to keep an eye on external factors that could impact the investment’s performance 
  • Inflation Consideration: The calculator doesn't account for inflation, so it is important to consider how inflation can affect the purchasing power in the long run when looking at the attractive returns offered by PPF

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