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PPF Calculator For India In 2022

What is PPF?

PPF stands for the Public Provident Fund. It was first introduced in 1968 to turn tiny deposits into investments with respectable returns and tax savings. In addition, it aids in creating a retirement fund. PPF now has a yearly compound interest rate of 7.1 percent. PPF is supported by the Indian government, has minimal risk, and promises risk-free profits. Additionally, because it has EEE (Exempt-Exempt-Exempt) status, the money invested, the interest earned, and the money received at maturity are all tax-free.

Opening a PPF account

Creating a PPF account is simple. All that’s required is submitting an application form and documentation of your KYC, address, identification, and signature. After that, you can open a PPF account at a post office or any other nationalized bank. A few private banks are also permitted to assist with opening a PPF account. PPF account investments are locked in for 15 years. However, after completing six years, there is a possibility to withdraw your money. After that, the sum is available for withdrawal once a year.

Minimum tenure

PPF has a 15-year minimum tenure that can be increased indefinitely in 5-year increments. Additionally, the minimum and maximum investments in PPF accounts are INR 500 and INR 1,50,000 per financial year. Investments can be made in a single payment or up to 12 installments. PPF accounts require deposits to be made at least annually for 15 years.

How much to invest in PPF?

You should determine how much you need to put into your PPF account and how much you can save on taxes. The minimum and the maximum limits on investment are INR500 and INR1,50,000 rupees, respectively, per year. You can invest an amount of INR1,50,000 in PPF under 80C to cut down your tax exposure. However, investing the maximum limit amount is not recommended, owing to the 15-year lock-in period. You need to keep some money handy to ensure sufficient liquidity.

Why invest in PPF?

For investors who seek long-term investments, are risk-averse, and want returns, PPF is the best choice. Investors seeking bigger returns and are prepared to take risks may want to consider other possibilities. However, PPF gives you tax benefits. As mentioned earlier, PPF has the EEE (Exempt-Exempt-Exempt) status. The initial investment amount, the interest earned on the investment, and the final accumulated amount don’t carry a tax liability.

Simple deposits can be made annually in multiple installments. In addition, PPF also allows for flexible deposits.

PPF Calculation Formula

  1. Between the fifth day and the end of the month, the PPF account’s lowest balance is used to calculate interest.
  2. Investors who make deposits before the fifth of each month will get interest on the deposit for that month. Otherwise, interest is calculated using the PPF account’s prior balance.
  3. Investing before or after the fifth will have a negligible impact on the PPF interest of a few hundred rupees if an investor makes monthly PPF contributions.
  4. Invest before April 5 if you make a lump sum annual investment in a PPF plan.

The formula for Public Provident Fund calculation is as follows:

The formula below can be used to get the predicted interest and the maturity value:

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

The ‘A’ is the maturity amount.

The ‘P’ is the annual installment made in the PPF account.

The ‘i’ represents the PPF scheme’s anticipated rate of interest.

The ‘n’ is the term for which the PPF investment amount is made.

We can infer from the formula above that a longer investment time will result in a bigger return.

Advantages of using a PPF Calculator

A PPF calculator is a straightforward and user-friendly online application. A PPF calculator estimates the interest earned and the maturity value for a particular invested amount and an investment time.

By entering the investment amount and period, an investor can calculate his desired metric using the PPF calculator. In addition, the total corpus developed after the investment period will be shown by the PPF maturity calculator.

Knowing the anticipated maturity amount in advance is crucial. This helps potential investors select the PPF solution that best suits their financial objectives.

The following is a list of benefits of using an online PPF account calculator:

  1. An investor can estimate how much interest will be generated given a amount of principal amount.
  2. It helps the investor decide on the investment horizon or how long the investment should be held before it gives the desired return.
  3. An online PPF maturity calculator offers the investment schedule in advance, which helps calculate the annual investment amount, loan that can be taken out, and the amount that can be withdrawn.

Should you invest in a PPF scheme?

Given its advantages, a PPF scheme is a superior option for an investor looking for a safe and secure investment option backed by the government.

An investor can choose PPF if their investing goals include:

  • Retirement security.
  • Long-term planning.
  • End-to-end tax benefits.
  • A risk-free choice.
  • Avoiding the impact of market swings.

Although PPF has a lock-in term of 15 years, it offers partial withdrawal options and lending capabilities. This guarantees an investor’s liquidity in an urgent crisis. In addition, PPF investments have a minimal risk element because the government of India supports them.

It is easy to create a PPF account online and offline at post offices or branches of nationalized and private banks.

PPF is not the only or best investment alternative. Nevertheless, if a potential investor is young and primarily interested in tax savings, there are alternative investment opportunities, such as ELSS and NPS.

What are the alternatives to PPF?

Before choosing an investment, an investor must consider PPF’s alternatives. This choice must be based on what is best for his or her financial objectives. The investment may either be for the long term, such as 15 years, or short term, such as 5 years. If you want a shorter-term and more flexible option, you can invest in P2P lending products. It is one of those investment opportunities in the country that have rapidly gained momentum. P2P lending platforms, such as LenDenClub, allow you to become a money lender and offer you higher returns than PPF. LenDenClub lets you choose your investment tenure, ranging from one to five years, according to your investment goals.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499


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