Post Office PPF Calculator

Nowadays, when it comes to investment, people have so many options. This is because of the dire need to manage wealth and safeguard the future against uncalled emergencies. There is only a few savings account that comes with risk-free returns. Post office PPF account is one such account. PPF account means a public provident fund account.

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You are supposed to invest your capital in this account to save up for the future with good returns.

What is Public Provident Fund?

PPF refers to Public Provident Fund. It was launched by the government in 1968 with an objective to accumulate small savings into an investment and provide profitable returns after a specific tenure. One can invest in a post office PPF account to build a retirement corpus. Since it is backed by the government the risks involved in PPF account investment is nearly 0 and returns are absolutely risk-free. Also, both, the interests earned and the maturity amount are tax-exempt because this account falls under the status of EEE which refers to exempt-exempt-exempt. Under section 80C of the Income-tax act 1961, the amount you will invest in the PPF account will also be exempt from tax.

At present, the interest rate on the post office PPF account is 7.1% for the financial year 2021-22.

How Can a PPF Calculator Help You?

This financial tool helps the investors to solve their queries linked with the Public Provident Fund account. There are some terms that are to be addressed while computing maturity amount after a specific point of time. It helps you to keep track of your capital growth. 

Many people who already have a post office PPF account are aware that interest rates are subject to change gradually. However, with the help of online tools and regular news updates, it is easier to keep track of interest rates. 

The online PPF calculation tool offers several advantages which are as follows:

  • This PPF calculation tool helps you to have a clear idea of how much interest you can earn with how much investment for the next 15 years.
  • Once you calculate the necessary numbers you determine how much to invest avail tax benefit.  
  • With the help of the PPF calculator, you can decide the minimum maturity date to further calculate the overall investment based on your budget and time.
  • It helps you to get an estimation of the overall investment that you may make in one financial year
  • In order to get the accurate result out of the PPF calculator, you must enter the necessary details along with the type of deposit you make i.e. fixed or variable.

You Can Use This Formula To Calculate PPF 

You can use this formula to either determine the deposit or interest earned over the period or overall return.

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

Refer to this table to understand the formula:


Annual Principal Amount


Maturity Amount


Rate of Interest


Total Number of Years

How Can You Use the PPF Calculator?

On online platforms, you will find a user-friendly interface to calculate the PPF. Here is a simple step by step guide which you can follow to calculate your PPF:

  • First, choose the frequency of deposits from available options. You will see Monthly, quarterly, half-yearly, and yearly. Choose the frequency you make deposits in your PPF account with a financial year.
  • The current interest will appear in the box by default.
  • Enter the annual deposit amount which you will deposit in your PPF account over one financial year. The maximum annual deposit is ?1.5 lakh p.a.
  • Enter the number of years you have planned to invest in the PPF account. The maximum tenure for the investment is 15 years. 
  • Click on calculate to check the maturity value from the PPF account. 

Benefits of Investing in Post Office PPF Scheme

  • As per the record, the interest rate on PPF investment ranges between 7%-8%. This is considered as the highest interest rate on any savings account investment and even considered higher than the interests on fixed deposits.
  • Investment in the post office public provident fund account comes with the tax benefits. For any investor, tax exemption is a very important factor. you can invest up to ?1.5 lakh p.a. the PPF account in one year as a principal amount and it will be exempted from tax under section 80C of the Income Tax Act 1961. The PPF account falls under EEE status that means the entire investment made in the PPF account is exempt-exempt-exempt for interest earned, maturity, and principal amount.
  • Since the PPF account is operated and backed by the Government of India, it makes it more reliable and secure for the investors to invest in post office PPF account as compared to other investment options such as savings account, FD, ELSS, etc.
  • Being managed by the Government of India the post office PPF account also comes with the safety of the investment. Unlike other savings bank account and fixed deposits, the PPF scheme is insured by the DICGC - Deposit Insurance and Credit Guarantee Corporation, for up to ?5 lakh.
  • As an investor, you are permitted to take a loan against the PPF account from the 3rd-6th year of opening the account. Also, you are permitted to withdraw a partial amount from the 7th year from the date of account is opened.
  • As a legal guardian, you can open a PPF account for your minor child or unsound child on their behalf. This way you can financially secure their future. 
  • In case you become insolvent, the balance of the PPF account can not be linked with your liabilities. You can only count on the partial withdrawal or maturity benefit from the post office PPF account.

Final Word

The post office PPF account comes with several benefits. Even though it comes with a lock-in period of 15 years, it does permit a partial withdrawal. Alongside, the investor can also enjoy the loan facility. Having a PPF account can reflect as your strong liquidity option in case of an uncalled emergency. Some people believe that there are a few risk factors involved in low PPF investment because it is operated and managed by the government of India; however, because of the same reason, the PPF account is considered a safe and secure investment option. As per the industry experts, the ideal time to open the post office PPF account is on or before the 5th day of the month. This timing can result in better returns. Also, you can open a post office PPF account online by visiting the official website of the Indian Post office or you can get it open traditionally by visiting the nearest Indian post office branch or any authorized commercial bank branch.

Written By: PolicyBazaar - Updated: 02 September 2021

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