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Public Provident Fund Account Calculator

Reviewed by Calculator Editorial Team

Public Provident Fund (PPF) is a long-term, low-risk investment scheme offered by the Government of India. It provides guaranteed returns and tax benefits, making it a popular choice for retirement planning. This calculator helps you estimate your PPF account balance over time.

What is Public Provident Fund (PPF)?

The Public Provident Fund (PPF) is a savings-cum-investment scheme launched by the Government of India in 1968. It is managed by the Pension Fund Regulatory and Development Authority (PFRDA).

Key features of PPF include:

  • Guaranteed return of 7.1% per annum (revised periodically)
  • Tax benefits under Section 80C of the Income Tax Act
  • Lock-in period of 15 years
  • Partial withdrawals allowed after 7 years
  • Maturity amount is tax-free

Note: The interest rate is subject to change by the Government of India. The current rate is 7.1% per annum (as of June 2023).

How PPF Works

Account Opening

You can open a PPF account with any post office or authorized commercial bank. The minimum deposit is ₹500 and the maximum is ₹1,50,000 per financial year.

Investment Period

The minimum investment period is 15 years. You can make annual contributions to your PPF account. The maximum limit for annual contribution is ₹1,50,000.

Interest Calculation

The interest is calculated annually on the average balance in the account. The formula for calculating the annual interest is:

Annual Interest = (Average Balance × Annual Interest Rate) / 100

Maturity Amount

At the end of the 15-year period, the account matures and you receive the principal amount plus the accumulated interest. The maturity amount is tax-free.

Partial Withdrawals

You can withdraw up to 50% of the balance after completing 7 years. The withdrawal amount is taxable as per income tax rules.

Example Calculation

Let's say you invest ₹50,000 per year for 10 years in a PPF account with an annual interest rate of 7.1%.

Year Annual Contribution Balance at Start of Year Interest Earned Balance at End of Year
1 ₹50,000 ₹0 ₹0 ₹50,000
2 ₹50,000 ₹50,000 ₹3,550 ₹103,550
3 ₹50,000 ₹103,550 ₹7,300 ₹153,850
4 ₹50,000 ₹153,850 ₹11,180 ₹215,030
5 ₹50,000 ₹215,030 ₹15,210 ₹275,240
6 ₹50,000 ₹275,240 ₹19,330 ₹334,570
7 ₹50,000 ₹334,570 ₹23,540 ₹394,110
8 ₹50,000 ₹394,110 ₹27,830 ₹451,940
9 ₹50,000 ₹451,940 ₹32,210 ₹512,150
10 ₹50,000 ₹512,150 ₹36,680 ₹568,830

After 10 years, your PPF account balance would be approximately ₹568,830, including the principal and interest earned.

Frequently Asked Questions

What is the minimum investment required for PPF?
The minimum investment required to open a PPF account is ₹500 per financial year.
What is the maximum investment limit for PPF?
The maximum investment limit for PPF is ₹1,50,000 per financial year.
Can I withdraw money from my PPF account before maturity?
Yes, you can withdraw up to 50% of the balance after completing 7 years. However, the withdrawal amount is taxable.
Is the maturity amount of PPF tax-free?
Yes, the maturity amount of PPF is tax-free as per the Income Tax Act.
What is the current interest rate for PPF?
The current interest rate for PPF is 7.1% per annum (as of June 2023).