How to calculate PPF interest online in 2022?

Housing Finance

After the recent COVID-19 global pandemic, saving money has become a crucial part of our life. Also, the increasing cost of living is making people look for investment options that help with long-term savings and building wealth. As an investor, you must look for genuine investment schemes that save and grow your money. Fixed deposits, recurring deposits, and mutual funds are a few popular options known. There are also a few schemes that are offered by the government. Public Provident Fund (PPF) is one such offering that gives guaranteed, high returns. Let us understand how PPF returns can be calculated online using a PPF interest calculator.

What is PPF?

PPF is a long-term savings offering in India. It is popular among those who want to save money and tax. It was first introduced to the public sector in 1968 and since then, has been popular as a long-term saving-cum-investment product. PPF is a great tool if you want to create long-term wealth and build a retirement corpus. You can invest a minimum of Rs. 500 and a maximum of Rs. 1,50,000 in a financial year. The returns will be on the amount you invest at the end of the year. Investment in PPF is exempt under section 80C of the Income Tax Act (ITA) and the returns from PPF are also not taxable. A PPF account has a tenure of 15 years. You can extend the duration by blocks for five years.

How does a PPF account function?

You can open a PPF account online and offline. Each individual can have only one PPF account. A PPF account can be opened for minors accompanied by a adult guardian. The procedure of opening a PPF account is similar to how one submits information and proofs for a savings account.

What are the benefits of a PPF account?

A PPF scheme is guaranteed by the Central Government. Therefore, many investors, including those with a low appetite for risk, find it an ideal way to invest and save. Here are some features of a PPF account.

  • The returns are safe and guaranteed.
  • It has a lock-in period of 15 years.
  • It is suitable for people with long-term financial goals.
  • It is ideal for those who want to improve their retirement portfolio.
  • Investmemnt in PPF helps you get tax exemption.
  • The interest or returns earned on the invested sum is not taxable.

How Does PPF Interest Calculator work?

The interest on your PPF investment is determined by the Central Government of India and is reviewed every quarter. You can use an online PPF calculator to find how much returns you will get in your investment. After you have decided on an amount to put in PPF, the PPF interest calculator will calculate the returns on the 15-year tenure and the current interest rate.

How to use a PPF interest calculator online?

Many of us find calculations tedious. There are many PPF interest calculators online, and you can use the one that makes the job easiest for you. suits you best.

The formula for PPF interest calculation is M= P [{(1+t)^n} -1)/ i] x (1+i).

Here, M= maturity value, P= annual payments, i= interest rate, and n= number of years or duration.

Using a PPF interest calculator online is easier. To use an online calculator, you need to enter the following information:

  1. Choose the number of years you want to invest in PPF
  2. Enter how often you want to deposit (monthly, quarterly, half-yearly, and yearly).
  3. Enter the amount you plan to deposit in your PPF account over a financial year.
  4. The interest rate will be provided by default.

After you enter the required information or values in the given fields, the calculator will reflect the total maturity amount based on the data. Keep in mind that if you invest from the 1st of April, the interest rates applicable will be based on the financial year. Interest rates are also subject to inflation.

What are the advantages of using a PPF interest calculator?

Some people might find the formula for calculating the return in a PPF complex. It often happens that complex calculations keep us from keeping a track of our investments. Therefore, using a PPF interest calculator online is useful. An online PPF interest calculator lets the system run the formula once you have entered the details. However, you must remember to put in the correct information for accurate results. The calculator shows you how much tax will be saved in the current year and over the long investment period. It helps you plan your annual savings budget by giving a clearer picture of where you can direct your savings.


Public Provident Fund (PPF) is a popular savings-cum-tax-saving instrument in India. The interest is compounded annually in a PPF account. PPF is a safe investment scheme if you are looking for something with low risk. The longer duration ensures that investors get significant returns. It is easy to open a PPF account online and offline. You can also take a loan against PPF between the third and the fifth years. The 15-year lock-in period ensures that the principal amount is safe. A PPF account calculator can help you calculate PPF interest in minutes. You can find more informative blogs and hassle-free personal loan offerings on Piramal Finance.