PPF stands for Public Provident Fund, which the government of India backs. PPF has been the most common and popular investment for several decades. The main objective of PPF is to provide an option for salaried individuals to save money for post-retirement. It is the most popular saving scheme in the market due to its many advantages and good return. Let us dive deep into the process of calculating PPF and its working.
How Does PPF Work?
The self-salaried individuals can also open public provident fund accounts for long-term savings. You can choose the investing amount by calculating PPF. Moreover, the PPF plan also offers the facility of partial withdrawal and loans.
It is possible to open a PPF account for people of the age group of 18 years and above. The scheme does not provide any upper age limit to open a PPF account. Opening a PPF account is simple, and so is calculating PPF.
You just have to visit the respective post office or bank that has been authorized for the same and get yourself enrolled. The online process is much simpler, and you do not have to go anywhere and open an account with just a few clicks. All you have to do is visit the official website of the respective bank.
Once the account attains maturity, you can withdraw the entire maturity amount. After 15 years, the entire maturity amount with the interest rate will be transferred to your bank account.

What is the Formula of Calculating PPF Interest?
You can use the PPF calculator online, which is also known as the PPF interest rate calculator for calculating PPF. You can simply apply the following formula for calculating PPF:
A = P [{(1 + i ) ^n} – 1) / i ]
Where,
F = Maturity proceeds of the PPF
P = Annual installments
n = Total number of years
i = Rate of interest/100
How to Use PPF Calculator?
To use the PPF calculator for calculating PPF, enter the requisite values in the necessary fields; this will lead the total maturity amount to pop up within a few seconds.
Also, if you deposit an amount, say on the 1st of April, then the rate of interest will be calculated based on the financial year. Inflation can affect this rate of interest.

What Is PPF Interest Rate?
For calculating PPF, it is mandatory to know about the interest rate. The current PPF interest rate has been set at 7.1%, and its calculation is done annually. PPF interest rate is set by the Finance Ministry every year and paid by the end of each fiscal year. You can know the amount of interest rate by calculating PPF online using the PPF interest calculator. Moreover, the interest earned remains tax-free under The Income Tax Act.
How is PPF Interest Rate Decided?
Interest on PPF calculation every month and credited by the end of a year. This interest rate calculation and the amount on which it is paid depends on the total amount that stands in the investor’s account.
Its compounding is typically done on the lowest balance value in an account between the fifth day of the month and the last.
Advantages of Using PPF Calculator
- A PPF calculator makes it simpler to calculate the interest earned on a certain investment
- You can save yourself from hefty tax payments with the assistance of a PPF calculator
- For those who find it difficult to estimate the maturity amount, a PPF calculator for calculating PPF helps solve this problem
- You can also get an idea of the total investment in a specific financial year

Key Takeaways
- PPF is one of the best saving schemes for post-retirement
- Both salaried and self-salaried individuals can open a PPF account and receive several advantages and good returns
- PPF is one of the safest saving schemes. You get the guaranteed return at the time of maturity
- You can choose the investment amount and time period of the scheme by yourself by calculating PPF
Conclusion
Now that you know everything about calculating PPF, you can make a wise decision while making an investment. Public Provident Fund (PPF) is a great financial tool that not only helps you save a corpus for your life after retirement but also works as an excellent tax-saving investment in the long run. It is the safest saving scheme available in the market.
It is always advisable to calculate the interest and total maturity amount by calculating PPF before investing in it. You can simply use the PPF return calculator for that.
FAQs
The specific lock-in period for the PPF account is 15 years. However, you can make partial withdrawals from the 5th year.
It is possible to transfer your PPF account from one branch to another. You can visit your existing branch of the bank or post office and submit an application to change the branch.
The interest rate is reviewed every quarter and regulated by the Indian government. The interest rate is credited at the end of the financial year. The current rate of interest on PPF is 7.1%. You can find the return amount by calculating PPF online using the PPF account calculator.
The time period of the PPF account is 15 years so the investment will mature, and the entire wealth gained can be withdrawn after that. Although, the PPF account can be extended for blocks of 5 years.
No, it is not compulsory to add nominees for a PPF account. But, it is advisable to add nominees to avoid conflicts in the event of death and to have a clear transfer of funds to the desired person.
The minimum limit stands at INR 100 for opening a PF account.
Yes, the PPF amount at the time of maturity is free of tax.
A lock-in time of 15 years is calculated from the end of a financial year, marking the opening of the account.
Also Read: PPF Withdrawal Rules