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Provident Fund Calculator

A provident fund calculator is an online tool which is devised for the purpose of calculating an investor’s provident fund. If you do not know how to calculate your PPF but want to get details regarding your complete contribution and maturity amount, this tool can prove to be useful. The online tool is simple, convenient and completely free. You simply need to enter your monthly contribution amount and the PPF calculator will automatically calculate the amount payable after the next 15 financial years. Additionally, you can find details regarding the amount of interest, invested amount and the maturity amount. Before we get into the functioning of a PPF calculator, let us know more about what a Public Provident Fund is.

What is a Public Provident Fund?

It started as a savings-cum investment scheme by the Central Government in 1968 under the National Saving Institute of the Ministry of Finance. The investment avenue is an excellent option for those looking to save for retirement, given that the returns are tax free. The minimum amount of investment required is ₹500/- and the maximum amount is ₹1,50,000/- Any individual can open a PPF account with any nationalized bank. Many private sector banks give an option of opening a PPF account directly with their salary accounts.

Types of PPF Calculators

Fixed Monthly Investment Calculator

This calculator helps an individual to determine the amount required to pay every month for PPF contribution. You are simply required to enter basic details such as month of investment, PF account number, fiscal year, fixed monthly deposits etc., and it will automatically calculate the maturity amount on your behalf.

Fixed Yearly Investment Calculator

This calculator helps an investor to determine the PPF contribution amount on an annual basis as the rate of interest changes every financial year. You simply need to enter the fiscal year and annual deposit amount in the calculator.

Variable Yearly Investment Calculator

You simply need to enter the fiscal year and annual sum deposited for every year and the tool will automatically calculate the amount on your behalf.

Loan Calculator

A tool to help you determine the amount of loan which can be availed on the basis of the deposited amount.

Withdrawal Calculator

You are entitled to make withdrawals post the 6th year. This calculator will help you compute the amount of withdrawal.

Maturity Calculator

This calculator will help you in computing the maturity amount during the time of withdrawal.

Benefits of a PPF Calculator

  • Helps in calculating interest on both, fixed and variable investment.
  • Assists in financial budgeting with respect to income tax.
  • Calculates loan and withdrawal amount.
  • Determines the total amount of tax saved in 15 years.
  • Determines income tax liability before investing.
  • Helps in understanding how PPF works.

How is PPF Interest Calculated?

The PPF interest is calculated on an annual basis with the compound interest formula: F = P [({(1+i) ^n}-1)/I], where: F = Maturity Amount P = Annual Installments N = No of years I = Rate of Interest/100 E.g. If your monthly investment for 15 years (@8% rate of interest) is ₹10,000, the maturity amount at the end of 15 years will be ₹35,18,914.

How to Open a PPF Account?

You can open a PPF account at any post office or nationalized/private sector bank with the following documents:

  1. Application Form
  2. 2 passport size photographs
  3. KYC - ID Proof
  4. KYC - Address Proof Many private banks also have an option to open a PPF account online by directly linking it to their salary accounts.

FAQs on Provident Fund Calculator

Can I deposit more than 2 lakhs in PPF?

No. The annual limit is ₹1,50,000 only.

Can I open two PPF accounts?

No, you can have only a single PPF account for yourself.

Can I withdraw money from PPF account?

Yes, partial withdrawals are allowed post 6th year of investment.

How can I check my PPF balance?

Simply login to the official website of your bank where you have opened a PPF with your net banking user ID and Password. Once you have logged in, you can check all the details of your PPF balance.

How can I withdraw money from my PPF account?

You can simply transfer the money to your PPF-linked savings account.

Is PPF good?

Yes, it is an excellent investment option for retirement planning as the amount is invested for a long term and the maturity amount is completely tax-free.

Is PPF interest rate fixed?

No, it is decided and revised by the government on a quarterly basis.

Is PPF interest rate same for all banks?

Yes, the PPF interest is same across all banks

Is PPF return tax free?

Yes, the PPF returns are completely tax free.

Is PPF safe?

Yes, it carries less risk in comparison to other investments and it is also backed by the government.

Is PPF Taxable?

No, the PPF amount is not taxable.

What is interest rate of PPF in SBI?

The current rate of interest is 8.0%.

Which is the best bank to open PPF account?

An individual can open a PPF account at any bank.

Who all are eligible to apply for PPF scheme?

All Indian citizens aged between 18-60 years of age are eligible to open a PPF account.

Can we change PPF amount?

Yes, you can change your PPF contribution anytime you like. Ensure that the annual amount doesn’t exceed ₹1,50,000/- and the minimum amount is ₹500

Does PPF interest rate vary?

Yes, it is revised on a quarterly basis by the Indian government.

Is PPF the best investment?

Each investment instrument is unique in its own sense; hence an investor must evaluate his or her needs and then choose an investment instrument that meets them.

What is the minimum lock in period for PPF account?

The minimum lock-in period under a PPF account is 15 years with an option of partial withdrawal post 6th year.

What is the PPF interest rate for 2018-19?

The PPF interest rate for 2018-19 is 8.0% with effect from 01.10.2018.

When should we invest in PPF?

Anytime is a suitable time for a PPF investment.

How much money can be deposited in PPF account in a year?

The annual limit which can be deposited in PPF account is ₹1,50,000/-

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