PPF Calculator
Get accurate maturity and interest calculations with our PPF Calculator.
Calculate the maturity amount and interest earned on your Public Provident Fund (PPF) investment with our PPF Calculator.
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What is a PPF Calculator?
A PPF calculator can assist you in determining the investment value of your Public Provident Fund (PPF) over a specific period of time. PPF is a government-backed savings programme with a number of advantages. This long-term investment option has a lock-in period of 15 years and provides higher returns than other options like fixed deposits. PPF is a fantastic strategy to lower your tax burden while you are employed.
When you use an online PPF calculator, the calculator will simply apply the PPF calculation formula to determine the final value of your investment after a specific amount of time has passed and a specific PPF account interest rate.
Calculations might not come naturally to all of us. If you intend to invest in PPF but are unsure of how much to invest or how much return you might gain on investing a certain amount, Vakilsearch PPF calculator is the best choice. The PPF account calculator uses a The ppf return calculator uses a 15-year tenure and the current interest rate to compute returns after you've decided how much you can decide to spend regularly.the current interest rate to compute returns after you've decided how much you can decide to spend regularly.
How the PPF Interest Calculator Can Help You?
When you are making investment plans, using Vakilsearch online PPF calculator can help in determining the project returns easily.
The total amount of return on the expected investment is readily shown
The public provident fund calculator can be used repeatedly until you find the right amount to invest to achieve the desired returns
Automating this allows for the avoidance of errors and the skipping of manual calculations
The online ppf calculator can be used during the tax planning process to help you to plan your investments
You may be able to estimate how long you have until retirement and how much wealth you can accumulate up until then if you choose to extend the PPF account beyond the lock-in period.
How to Use PPF calculator?
Our PPF Calculator has a simple, user-friendly layout. However, if you've never used an Online PPF calculator before, follow these easy steps to utilise this free calculator:
Step 1: Visit Vakilsearch PPF return calculator
Step 2: Enter the following information
PPF account tenure: How long has your PPF account been open? It can range from at least 15 years, to 50 years, the period may be extended in increments of 5 years
Deposit frequency: You have the option of setting a monthly, quarterly, half-yearly, or annual payment or deposit frequency
Deposited amount: The amount deposited refers to the sum you decide to add to your account at each interval of deposit. For example, if your deposit is ₹500 and you choose to make monthly contributions, the total PPF contribution to your PPF account at the end of any given year will be ₹6000
Rate of interest: The Finance Ministry releases this figure each year as the annual rate of return on PPF contributions. As of the first quarter of FY 2019–20, the PPF interest rate is set at 7.9%.
Step 3: Click on the continue button
Step 4: Recognise the result
The PPF calculator returns the results/outputs listed below
PPF account's opening balance: It is the balance on the first day of the fiscal year
Total deposit: After adding up all of the deposits made in that particular year, the total deposit made at the conclusion of the fiscal year will be displayed
Total Interest: Interest earned is determined based on your account's balance at the end of the fiscal year. The applicable interest rate is taken into consideration when calculating the annual compounded PPF balance
Closing balance: All deposits made during that year, and any interest you received during that time period is your closing balance
PPF loans: After the third year has passed since the date your account was opened, you are eligible to apply for a loan based on the remaining balance in your PPF account. Your maximum loan amount is equivalent to 25 % of your PPF account's opening balance for the prior year. The result displays the highest loan amount you may be qualified for at any given time. Based on the supposition that you did not take out any loans in the preceding year, this computation was made
Partial withdrawals: After six years after the account was opened, you are eligible to make partial withdrawals from your PPF account. The maximum withdrawal amount is equal to 50% of the balance in your PF account from the previous year. The PPF interest rate calculator will show you how much you can withdraw in total at any given time. This computation is predicated on the notion that you didn't make any withdrawals or take out any loans in the previous year.
How Is PPF Interest Calculated?
The formula shown below is used by a PPF amount calculator to perform the required computations.
A= P * (1+R)
The PPF maturity amount is represented by 'A'
You can choose between month, quarterly, half-yearly, or annual frequency
Your major investment in your PPF is denoted by the letter ‘P’
‘r’ stands for the interest rate announced by the government
‘t’ stands for the time period that you have kept money invested in your PPF account.
Benefits of the PPF Calculator From Vakilsearch
Calculating your returns is simple with an online PPF calculator. However, there are some added advantages. The following benefits of utilising the Vakilsearch's online PPF calculator India include
Setting a goal: If you have a goal in mind, you may check with the inputs in our online PPF calculator. The calculator can easily determine how much you'll need to put in each year to reach your objective
Easy calculations: The formula for calculating PPF is somewhat complicated. When performing calculations manually, mistakes may occur. If you want to understand how your annual contributions affect the final value, it could be particularly challenging
Accurate tax results: Using a calculator can help you plan your taxes since you'll be able to determine how much you can deduct annually under Section 80C of the Income Tax Act, 1961 once you know how much you'll need to donate annually.
The Following Considerations Must Be Made Before Utilising the PPF Calculator
A maximum of ₹1.5 lakhs may be deposited into your PPF account in any one fiscal year
You can fund your PPF account with as low as ₹500 per year
Once a year, the interest is compounded ( at the financial year-end )
The PPF account's earnings are completely tax-free
The PPF interest rate may fluctuate every three months, as stated by the Ministry of Finance.
PPF Calculator FAQs
A bank or post office are both places where you can open a PPF account. Under Section 80C of the Income Tax Act, PPF gives a deduction of up to ₹1.5 lakh for the amount invested during the financial year. The PPF is tax-exempt since it fits under the exempt category, hence the interest and maturity amount are tax-free.
The PPF account maturity date is 15 years following the end of the financial year in which the original subscription was made, per the PPF system standards for 2019.
Following its 15-year maturity term, your PPF account will be open for withdrawals. Additionally, partial withdrawals are allowed up until the account's maturity.
If you have made contributions to your PPF account for five years straight, you are eligible to withdraw money from it. To do so, you must receive Form-C (PPF Withdrawal Form) from your chosen bank, fill it out, and submit it to the bank along with a withdrawal request.
Under Section 80C of the Income Tax Act of 1961, withdrawals from PPF, whether partial or in full, are not subject to taxation. The group of investments known as exempt includes Public Provident Funds. In other words, all deposits made through the PPF are tax-free.
