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PPF Calculator

Yearly Investment

Enter value between 500 and 150000
₹ 500 ₹ 150000

Time Period

Enter value between 15 and 50
15 Yrs 50 Yrs

Rate of Interest

7.1 %
Total Investment
₹ 16,00,000
Total Interest
₹ 17,761
Maturity Value
₹ 9,57,568

How is PPF Interest Calculated? Here is Everything You Must Know

PPF Calculator - An Online Financial Tool

ppf calculator

PPF Calculator - An Online Financial Tool

As stated earlier, the PPF calculation process slightly differs from other savings or investment options and is complicated as well. In such cases, the PPF calculator acts as one of the best ways to calculate PPF interest easily.

PPF calculator is an online tool that helps you to calculate the year-wise return against your contribution to the PPF account for a fixed tenure with a specific frequency. In short, if you are willing to invest in PPF but not sure about the ideal amount of investment or the return it would generate for investing for a certain period, you can use the PPF calculator to get fast results/calculations.

This versatile tool eliminates the need for different bank-wise calculators, such as HDFC PPF calculator, SBI PPF calculator, etc.

Introduced in 1968 by the Finance Ministry’s National Savings Institute, Public Provident Fund (PPF) is one of the most sought long-term savings cum investment products. One of the reasons that makes PPF a popular choice is the substantial return, i.e., the accumulated interest amount at the end of every year it guarantees.

How PPF Interest is Calculated?

How PPF Interest is Calculated?

Those who are wondering how the PPF interest is calculated must know that the PPF interest is calculated on the minimum PPF account balance of an individual deposited between the 5th and the last day of every month. With this comes several facts to consider. Such as -

  • If you are willing to make a fresh deposit, you need to get it done before the 5th  of each month to get interest on that deposit for that month. In cases otherwise, the interest will be calculated on the previous balance, and the new deposit will not be considered.
  • Therefore, to increase the interest, individuals need to deposit contributions or lump sum amounts prior 5th of each month.
  • PPF subscribers can deposit a minimum amount of ₹500 in the PPF account, and the upper limit goes as far as ₹1.5 lakhs.
  • Note: The deposit in a PPF account in a lump sum can be made in a maximum of 12 installments each year.
  • Therefore, if you have the maximum limit of the PPF account, you should deposit it by 5th April. It will facilitate you to generate interest in the one-time deposit for the whole year. An example will further help you to understand this clearly.

For instance, in the previous financial year, you had a balance of ₹1 lakh in your PPF account. You deposited ₹50000 before 5th April. Therefore, the minimum/lowest monthly balance (from 5th April to 30th April) is ₹150000. Hence, you will get an interest of, let’s say, X (higher) for that month (depending on the PPF interest rate).

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PPF Interest Calculation Formula

PPF Interest Rate and its changing/revising Frequency

How PPF Calculator Works?

As stated earlier, the PPF interest calculator is an online financial tool that offers hassle-free calculation of PPF interest earned on the investment and maturity amount after the lock-in period of 15 years. If you can’t understand how to calculate the PPF interest rate, using this tool is the best option.

To use the PPF interest rate calculator, you need to select the type of deposit (fixed amount or variable) and the deposited amount for each year.

To be precise, you need to put data like PPF interest rate, time, and invested principal amount, and it will show you the results.

However, the results will show a table with some new terms, which you must know to understand the results better.

1. Opening balance

It refers to the PPF account balance at the beginning of the year.

2. The amount deposited

It refers to the PPF account balance after all the deposits have been made throughout the year.

3. Interest earned

It points to the interest calculation, which is done based on the PPF account balance at the end of the financial year. PPF account balance is compounded annually.

4. Closing balance

It refers to the total amount at the end of the year, which is calculated by summing the interest earned from the existing year to the opening account and all the deposits made throughout the year.

5. Loan (Maximum)

PPF subscribers can avail of loans from the 3rd year to the end of the 6th year from the date of account opening. However, after the end of the 6th year, loans on PPF will be unavailable. Individuals can opt for partial withdrawal. The maximum loan offered on PPF is usually 25% of the previous year’s opening balance of the account.

6. Withdrawal (Maximum)

PPF subscribers can make a partial withdrawal once a year after the completion of the 6th year and the beginning of the 7th financial year. The online calculator shows the maximum withdrawal amount on the basis of the presumption that no withdrawal was made or loans were availed in the previous year.

Important Facts about PPF Account

How PPF Interest Rates have changed over the last 3 years?

The table below shows the changes in the PPF rate of interest over the last 3 years:

Period PPF Interest Rate
April-June, 2021 7.10%
January -March 2021 7.10%
October -December 2020 7.10%
July-September 2020 7.10%
April-June 2020 7.10%
January-March 2020 7.90%
October-December 2019 7.90%
April-June 2019 8.00%
January-March 2019 8.00%
October-December 2018 8.00%
July-September 2018 7.60%
April-June 2018 7.60%

FAQs about PPF Calculator