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Public Provident Fund is one of the most popular fixed-income investment method owing to its tax benefits and long-term assured returns. Post Offices offer hassle-free ways of investing in Public Provident Fund. One can also calculate how much their PPF contribution would have grown to use the Post Office PPF calculator.

What is PPF and How it Works?

The Public Provident Fund PPF scheme is an efficient investment scheme that allows investors to create a retirement corpus by investing in the account either. PPF has a mandatory lock-in period of 15 years during which the investors cannot close their accounts. However, partial withdrawals are allowed from the 7th year subject to certain conditions. PPF has become one of the highly preferred investment nowadays owing to the attractive interest rate that it offers, along with the tax benefits under section 80C of the Income Tax Act. Furthermore, investors are provided with the facilities of loans, an extension of account in blocks of 5 years, etc. With the help of Post Office PPF account calculator, one can easily calculate the year-wise PPF returns with ease.

What is PPF Calculator for Post Office 2020?

It’s a handy tool that can help you in performing the intricate PPF related calculations in a fraction of seconds. With the help of this PPF calculator, you can easily calculate the year-wise PPF returns you can earn by contributing to your PPF account over a fixed time period and with a specific frequency.

PPF Calculation Formula

PPF returns are calculated with the help of following formula:

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

This formula represents the following variables –

  • F – Maturity of PPF
  • P – Annual instalments
  • i – Rate of interest
  • n – Total number of years

How to Calculate the Maturity Value of your Post Office PPF Account?

The PPF account calculator for Post Office provides an estimate of interest earned, maturity value for a given amount invested and investment period. This estimation of the returns earned at the end of the investment period helps you know whether the investment option chosen matched with your financial goal or not.

Steps to use the Calculator are as follows:

  • Enter the yearly investment amount or move the slider to adjust the amount
  • Enter the time period of the PPF investment.
  • Once you enter the above details, the Post Office PPF calculator will provide you with the total investment amount, total interest and the maturity value at the end of the investment period.

Benefits of Using Postal PPF Calculator

  • It helps investors to gain an idea about how much interest can be earned with their investment
  • The Post Office PPF calculator saves a lot of time as investors don’t have to go through complicated calculations, thus mitigating the scope of any miscalculations.
  • It helps to estimate the total investment in a financial year

Post Office PPF Scheme Calculator – FAQs

Ques. How is the PPF interest rate calculated?

Ans. The PPF interest rate is reviewed every quarter. The interest is compounded annually for this scheme and is calculated every month but credited to the investors’ account at the end of the year on the 31st of March.

Ques. How is interest on PPF calculated?

Ans. The PPF interest is calculated on a monthly basis based on the pre-determined rate of interest decided by the government. However, the interest is credited to the account at the end of the financial year.

Ques. How much is the return on PPF after 15 years?

Ans. An investor receives the matured amount in the PPF account after 15 years which is the principal amount invested and the interest earned on it.

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