What is PPF and How To Calculate It

PPF Calculator – How to Calculate PPF

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Everything in this world requires time. You need time to cook a good dish. You will need time to prepare a great tasting wine. You also need time to watch your efforts take shape into something substantial.

At least for a couple of years there is literally no rewards,  how much ever efforts that you put in, it does not really make any difference, it just helps us if we stay patient and keep on doing what we do best.

Some of the greatest people in life never really got to the point of achieving something substantial, till they reached a point in their life when they almost gave up and stopped doing what they did. On the other hand, people such as Warren Buffet, Donald Trump and Jordan Belfort started very early in their lives in order to achieve in their lives all that they intended to do.

Warren Buffet started investing and selling encyclopedia at an early age and eventually started investing in shares I order to make the most of his money over a long period of time.

The beauty of investments does not lie in how much you invest; it is how long you stay invested and how frequently you invest. It remains in how persistent you are over a long period of time in your investments and where you end up investing in this world that is filled with opportunities.

Let's consider a couple of options such as mutual funds, shares, LIC, Life insurances, Post schemes and the slowest of all fixed deposits. Mutual funds and shares are very high-risk investments; both need to be taken care of, and their growth needs to be monitored from time to time in order to be sure that they are growing in the right direction and won’t tank anytime soon.

Shares are very risky as you need to be actively involved in the trading aspect of it. LIC, on the other hand, is the kind of investment that has very little appreciation for the short period of time, but if you stay invested for a very long time, you might just end with something good when you get really old.

Again the time taken is very long, and you need to be consistent on your investment. Then there are posts and fixed deposits. As I said before, both of them are the slowest and have the least appreciable value in the longest period of time. It is barely possible for you to do anything about it, as by the time your investments grow to a substantial value, you will be too old to actually use it. Or you might just end up withdrawing the money half way through.

The question here remains is what are the investment options that can help you not only grow your money but will give you returns after a period of 3 to 4 years. The answer could be probable by PPF. PPF or Public Provident Fund is an excellent mode of investment for a long tenure. Let's discuss in detail everything you wish to know about PPFand PPF Calculator Online.

PPF, What does it mean?

PPF manages to sound like a very complicated term but is not, it’s rather simply known as Public Provident Fund. It remains to be a tax-savings cum saving scheme introduced by the National Saving Institute of the Ministry of Finance that is under the Central Government. There is very little that is known about this institute but it does operate rather efficiently, as introducing these schemes has helped the general public a lot.

How does it work?

The goal of PPF is to basically to provide savings in small amounts for people, to help them cultivate the habit of investment. It is the most basic type of investment, and the amount can be a minimum of Rs.500/- to a maximum of Rs.1,50,000/-.

There is no limit on how many times one can invest, but as mentioned above, the investment amount can vary substantially and as per your choice. You can provide standing instructions to your desired bank to have a certain amount deducted every month in order to make it effortless and easy.

What is the rate of interest on the PPF?

The rate of interest is a maximum of 8.1% per annum. The advantages begin with the fact that the amount is completely tax-free and that the money is compounded annually. So every year you shall gain an appreciation on your deposited amount by means of compound interest, which is simply brilliant.

Is there a lock in period?

Yes!, all these advantages come at a cost. The cost being a lock in period of a minimum of 15 years. Your funds are not accessible for a minimum of 15 years, its only after 15 years you can withdraw or mobilize your investments and isn’t that a good thing.

How do Open a PPF Account?

Well, it is as simple as opening any other account, you can approach any of the nationalized bank namely SBI, Bank of Baroda, etc. and ask them to open a PPF account in your name. They will ask you to open an account at their bank first, a post which you can proceed to open a PPF account with them.

You can look up these keywords on the internet SBI PPF, SBI PPF interest rate or PPF rules and you shall receive a list of search results that will provide you with what you are looking for. There are also other Privatized banks that are sanctioned to open a PPF account, such as HDFC, ICICI Bank, Axis, etc. The terms and conditions of PPF remain the same with them the only trade off will be the higher minimum amount of balance that one will have to maintain in the account that has to opened in these banks.

Let’s summarize all the facts mentioned above in order to give you a one-stop detailed list of all the discussed pointers.




Rate of interest


Scheme Duration

15 years minimum

Minimum deposit


Maximum Deposit


Number of deposits annually

A minimum of 1, maximum of 12

Number of accounts per person


Lock in Period before withdrawal or displacement

15 years minimum

Extension of beyond the duration of the scheme

Five years post the scheme duration of 15 years

Contribution for tax savings under section 80C

Up to Rs.1,50,000/-

Interest gained on the final amount

Completely tax-free


Are there any alternatives to PPF?

Yes indeed there are, ELSS basically tax saving mutual funds are alternatives to PPF and are completely exempted from any kind of taxes. But the flip side to it being they are still very risky and depend on the current market conditions to get you the best rate of interest.

How to calculate PPF?

The easiest way to calculate PPF is by simply discussing this matter with your banker when you are at the bank opening or contemplating on opening a PPF account. You can even consult us to get a better idea regarding the PPF.

If you still find visiting a bank a task and you are simply doing some window shopping, you can utilize a PPF calculator. There are many PPF calculators available online and at your disposal completely free of charge. You can search for PPF Calculators for from ICICI or SBI by looking up PPF Calculator ICICI, PPF Calculator for 25 years or PPF Calculator Excel sheet.

Going ahead you can also end up searching ELSS Calculator, Sukanya Samriddhi Calculator or PPF rules so that you get a better idea as to how and when one can manage their investments and make some provisions for depositing money in their PPF account.

Depending on your choice of duration you can easily calculate your PPF for a tenure of 15 to 20 years.

We suggest you to discuss your PPF related investment decisions with someone who is well versed in these matters. To add it to all we also suggest you to examine the returns and rate of return correctly and keep a tab of all the investments you end up making over a period of time so that you are sure regarding the returns that you may receive.

There is also the part that explains the terms and conditions of withdrawal in detail; it is very important for one to have a look and remember the lock-in period and the period from when you can partially withdraw some amount of the money. It is in the terms and conditions and differs from bank to bank; one can partially withdraw a small sum of money after a lock-in period of 6-7 years.

Most importantly when you are opening the account, it is the account holders responsibility to ensure the details given are legitimate and not fraudulent in any way. As any misconducts will hold the account holder responsible and in contempt. The same might also reflect in the account holder's credit history which will hamper future financial-related decisions.

You are welcome to contact our representatives at any given point of the entire process so as to be able to give you a clear idea and better understanding of the scheme. You can connect with our customer service representative as well.

PPF is an excellent type of investment, and every individual must consider this and take it up.

How to Calculate PPF?

If you are investing your money in PPF (Public Provident Fund), then you must know how to calculate your PPF interest. All thanks to the finance scholars for introducing a calculator that solves all your PPF-related queries. Well known as PPF Calculator among the investors and financial experts, it is an online tool, using which you can estimate your PPF-related calculations, such as interest earned over the period of 15 years, how your investment grows or the maturity amount etc.

If you are new to investing in PPF and find visiting your bank a painful task, then online PPF Calculator is your saviour here! Policybazaar has introduced PPF Calculator to benefit the visitors in a single click. You can now submit your PPF-related details, such as deposit amount, tenure (in years or months), etc. and it will calculate your maturity amount at the end of 15 years. Try it yourself and stay updated.