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Public Provident Fund (PPF) is a great investment scheme backed by the government that promises you guaranteed returns and tax benefits. It’s a great option for you if you’re looking for long-term financial planning because the interest is compounded annually. But is there a way to determine an estimated maturity amount of your PPF investment? The answer is yes.

Even though the calculation is not a cakewalk, an online PPF calculator is here to save you from all the trouble. A PPF calculator is used to calculate PPF returns and all you have to do is simply feed in a few data.

Let’s dive in and learn more about PPF, its benefits, and how a PPF calculator works.

First Things First: What Is PPF?

The Public Provident Fund, commonly called PPF, was introduced in 1968 by the National Savings Institute of the Ministry of Finance. Its main objective is to mobilize small savings and build a retirement corpus by not only giving you generous returns but also tax-saving benefits. So, PPF falls under the EEE category where the amount you invest, the interest you earn, and the maturity amount that you receive are all tax-free.

PPF is a secure fund because it is regulated by the Government of India. It is a low-risk fund and thus offers guaranteed returns. At present, the rate of interest on PPF is 7.1%, which is compounded annually.

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Why Should You Invest In PPF?

If you’re someone who is looking for a safe and secure investment option that is backed by the government and provides guaranteed risk-free returns, then the PPF scheme can be a good choice for you. Let’s understand why0

  1. The interest on PPF varies between 7% to 8%, which is higher than the interest on the savings account balance.
  2. Under Section 80C, PPFs fall under the EEE category because of which a deduction of ₹1.5 lakh is allowed on the principal amount invested.
  3. The risk factor in PPF is low and your investment is secured as it is backed by the Government of India, unlike most other savings accounts.
  4. Even though the lock-in period is 15 years, from the 3rd to the 6th year of opening the account, you have an option to take a loan against the PPF account.
  5. Also, after the 7th financial year, you can withdraw a partial amount from the PPF.
  6. The guardian of a minor can open a PPF account on their behalf which will help them secure their future.

How Does An Online PPF Calculator Work?

The interest earned on public provident funds is compounded annually. Once you open the PPF calculator, all you have to do is enter the investment amount (yearly) and the duration of the investment. The calculator will determine an estimated maturity amount depending on the current rate of interest.

The formula for the calculation of the maturity value is:

A = P [({(1+i) ^n}-1)/i]


  • A is the amount at maturity
  • P is the principal amount to invest in the PPF account
  • I is the interest rate on the PPF scheme
  • N is the duration for which you are investing in the PPF scheme
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Benefits Of Using PPF Calculator

A PPF calculator can help you plan your long-term investment plan to meet your financial goals.

  • The calculator gives you a clear picture of how much returns can be expected on investing a certain amount.
  • It can be used again and again until you strike an equilibrium between how much you must invest to get the desired returns.
  • The calculator is automated, which minimizes the chances of errors.
  • It can also be used at the tax-planning stage so your investments are better planned.
  • The PPF calculator also provides an option to extend the duration of the investment above the lock-in period.

Final Words

The Public Provident Fund is still one of the most popular avenues of investment among investors as it helps build a retirement corpus along with annual tax-saving.

Therefore, opening a PPF account is a better option than a savings account and FD, for those who are looking for safe investment options and earn guaranteed returns.


  1. How much can I get after a lock-in period of 15 years in PPF?

The maturity amount in the PPF scheme is calculated on the basis of the principal amount you invest, the investment tenure, and the rate of interest.

2. How is the PPF account calculated?

The formula for the calculation of the maturity value is A = P [({(1+i) ^n}-1)/i]

Here, A is the amount at maturity, P is the principal amount to invest in the PPF account, I is the interest rate on the PPF scheme and N is the duration for which you are investing in the PPF scheme. At present, the interest rate is 7.1%, which is compounded annually.

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3. How is PPF withdrawal calculated?

A PPF account holder can make a partial withdrawal from their PPF account every year, starting from the seventh financial year. You can withdraw up to 50% of the total balance at the end of the fourth financial year.

4. Is the PPF interest rate the same for all banks?

Since PPF is a government-run scheme, PPF interest is the same in all banks.


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