Post Office PPF Calculator: All You Need To Know

The government of India offers several long-term investment schemes for the benefit of the citizens. PPF or Public Provident Fund is one such scheme. You can open a PPF account either through a bank or post office. It is a long-term investment-cum-savings scheme that offers a host of benefits.

The Public Provident Fund is an efficient and low-risk investment scheme backed by the government of India. It allows you to contribute a small amount towards your retirement funds through the working years and build a corpus for the future. You can use the amount in your old age and live a financially independent life.The post office PPF comes with a compulsory lock-in period of 15 years. During these years, you cannot close the PPF account. However, from the seventh years onwards, you can partially withdraw from your accumulated corpus only for specific purposes like critical illness treatment, etc.Over the years, investment in post office PPF has become a preferred choice for many investors because of its attractive interest rate, and tax benefits. But, how can you know the maturity value of your investment in post office PPF? This is where the Post office PPF calculator comes in handy.

PPF calculator is an easy-to-use and handy tool that can help you perform PPF investment-related calculations with ease. Using the post office PPF calculator, you can determine the year-wise returns you can expect to gain from your investment in a PPF account based on the contributions you make. Also, you can know the exact maturity value of the investment.By doing your calculations, you can be better informed about your investment and make better decisions.

Using the PPF calculator is easy. You need not have any prior experience or technical expertise for it; the tool is self-explanatory. You must enter the following details:

• PPF tenure – the minimum investment duration in post office PPF is 15 years. And, the maximum term is 50 years.
• Frequency of deposit – when you invest in post office PPF, you have the flexibility to choose the deposit frequency. You can invest in your PPF account either monthly, quarterly, half-yearly or annually.
• Deposit amount – You can start your investment in PPF with as lows as Rs. 100, and deposit a minimum of Rs. 500 in a year. You can choose the deposit amount as per convenience, and it has to be adjusted as per the deposit frequency. For example, if you select the deposit frequency as monthly and you wish to deposit Rs. 1000, you must enter Rs. 12,000 in the calculator.
• Interest rate – The post office interest change is subject to change as per the government directives. You can easily check the interest rate online.

Once you enter the above day in the calculator, click on the ‘calculate’ or ‘compute’ button. You will immediately get PPF-related information, including the interest earned, maturity amount and total PPF investment amount.

The formula for calculating the post office PPF returns is as follows: F = P [({(1+i) ^n}-1)/i] In the above formula,

• F is the PPF maturity value
• P is the number of instalment you pay annually
• I is the interest rate
• N is the total investment duration (15 years)

• It helps you get a fair idea about the interest you can earn from your PPF account investment.
• The post office calculator saves a lot of in doing the calculations manually while calculating the PPF maturity value, the interest earned, the amount invested, etc. Also, it helps avoid the risk of manual errors in calculations.
• It helps you know about your overall investments in a financial year.

Thus, a post office PPF calculator is a useful tool that helps you make an informed decision about investment in a public provident fund.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.