PPF CALCULATOR

Loan (Max.)*: Loan Amount refers to the loan on PPF that can be availed at the beginning of the year.
Withdrawal (Max.)**: Withdrawal Amount refers to the PPF balance that can be withdrawn at the start of the year.

What is the PPF Calculator?

The PPF Return calculator is an easy to use a handy tool that can help perform even the most complicated PPF related calculations with ease. Using the online PPF calculator you can easily calculate the year-wise PPF returns you can earn by contributing to your PPF account over a pre-determined time period and with a specific frequency. The Online PPF calculator is a versatile tool and separate bank-wise calculators such as SBI PPF Calculator, PNB PPF Calculator, India Post PPF Calculator or HDFC PPF Calculator are unnecessary. This is because PPF feature like the interest rate, maturity, taxation and withdrawal rules are determined by the government hence remain the same irrespective of where the PPF account is opened.

How to use Public Provident Fund Calculator?

To use the PPF calculator correctly, you need to provide the following data:

• Tenure of the PPF account – Minimum 15 years to max 50 years with an option of extension in blocks of 5 years.
• Deposit/Payment Frequency – This can be chosen as monthly, quarterly, half-yearly and annually. In case of quarterly deposits made every quarter, half-yearly deposits mean twice each year and so on.
• Deposit Amount – This is the amount that is to be deposited in the account as per the deposit frequency. Thus if the deposit amount is Rs. 1000 and Deposit Frequency is monthly, total PPF deposit for the year will be Rs. 12,000 and automatically calculated by the PPF calculator.
• Interest Rate – This is the PPF rate of return that you are expecting on your investment. In case you are wondering how to calculate PPF interest rate, don’t worry, just check the latest PPF interest rates online!

Once you have provided the above data into the PPF calculator, just click on “Calculate” to get instant information about PPF maturity amount, PPF Interest earned, total PPF investment and much more.

How to Interpret the Results of the Online PPF Calculator

The results provided by the online PPF calculator includes a table displaying key data that current and prospective PPF subscribers need to be aware of:

Opening Balance: This is the PPF account balance at the start of the year.

Amount Deposited: This is the PPF account balance at the end of the year after additional deposits have been made during the year.

Interest Earned: This is calculated based on the account balance at the end of the year. The balance in a PPF account is compounded on an annual basis.

Closing Balance: This is arrived at by adding the interest earned from the current year to the opening balance and the additional deposits for the year.

Loan (Max.): Loan on PPF is available from completion of the 3^rd year onwards till the end of the 6^th year calculated from the date of account opening. The maximum loan available equals 25% of the opening balance of the PPF account for the previous year. After completion of the 6^th year from the date of PPF account opening, no loan can be opted for but partial withdrawals can be made. The maximum loan amounts in the table are based on the assumption that no loan has been taken during the previous year.

Withdrawal (Max.): Partial withdrawal from PPF account is allowed after completion of the 6^th year i.e. the beginning of the 7^th year onwards. The maximum withdrawal amount is the lesser among 50% of the account balance at the end of the previous year calculated from year in which withdrawal is made or 50% of the account balance at the end of the 4^th year preceding the year in which withdrawal was opted for. The Withdrawal (Max.) amounts provided by the online PPF calculator are based on the assumption that no withdrawals/loans have been taken by the account holder in the previous year.

What is Public Provident Fund?

PPF or Public Provident Fund is a Government of India-backed long term small savings scheme that provides tax benefits to investors under Section 80C of the Income Tax Act 1961. The PPF account provides fixed returns to investors at rates that are decided by the Ministry of Finance and features a maturity of 15 years. India’s current PPF plan was introduced in 1968 with the goal of mobilizing small savings from every part of India to help secure the financial future of millions of Indians from every walk of life.

Tax Benefit of PPF Investments

Investments in the Public Provident Fund are subject to tax deduction benefits up to the cumulative limit of Rs. 1.5 lakhs u/s 80C of the Income Tax Act, 1961. Moreover, PPF investments are classified as an EEE (exempt, exempt, exempt) which means that the principal investment, the maturity amount and the interest earned are completely exempt from taxation.

Loan against PPF Rules

The option of loan against PPF is available from the 3^rd year calculated from the account opening date till the end of the 6^th year of the PPF account. The amount that can be availed as a loan is linked to the total value of PPF deposits plus any accrued interest.

The amount that is availed as a loan against PPF as calculated by the PPF return calculator is equal to 25% of the PPF balance in the account for the year preceding the year of PPF loan application. For example, if you apply for a PPF account in March 2019, the qualifying amount will be calculated based on the closing balance in March 2018.

Public Provident Fund(PPF) Withdrawal Rules

The PPF account matures after completion of 15 years calculated from the day the account was opened. After maturity, the entire PPF account balance can be withdrawn. However, after the end of the 6^th year, PPF subscribers are allowed to make partial withdrawals from their account. The qualifying amount for partial PPF withdrawal is automatically calculated by the PPF calculator and is the lesser of the following amounts:

Option1. 50% of the PPF account balance in the year preceding the year of a loan application or

Option2. 50% of the PPF account balance in the 4^th financial year preceding the year of the loan application.       

Know more about PPF withdrawal rules

What are Applicable PPF Interest Rates?

As of Q2 FY 2019-20, the PPF interest rate is 7.9% p.a. and the PPF account balance is compounded annually. The interest rate applicable to the Public Provident Fund is decided by the Ministry of Finance and is liable to change every quarter. You can use the PPF calculator to get PPF returns based on different interest rates. The following are the recent quarter-wise historic PPF interest rates for FY 2017-18 and FY 2018-19:

Know more details about India’s Provident Fund Scheme