## Financial Tools

## PPF Calculator

Public Provident Fund (PPF) Calculator is an online tool that estimate total interest and maturity amount on your investment for a period. Estimate returns based on current PPF interest rates 2021 and apply online for PPF account easily.

**PPF account important details**

PPF Account | Details |
---|---|

Current PPF interest rate | 7.10% |

Lock in period | 15 years |

Minimum Amount | ₹500/year |

Maximum Amount | ₹1500000/year |

Tax on PPF interest | No Tax |

## How to Use PPF Calculator

PPF calculator is a very simple and easy online tool of PPF related calculation. This calculator gives you the final maturity value of the PPF investment after 15 years. You would also get to know the annual growth of regular PPF investment. The calculator also tell you the eligible loan amount on the basis of your PPF corpus. To use this calculator you have to enter the yearly contribution and number of years . It will take the current interest rate to show maturity amount.

**Easy steps to use PPF Calculator Online:**

- Enter your investment per annul.
- Select number of years to invest.
- Now, check your total maturity amount, investment and interest earned.

## PPF Interest Rate 2021

The current PPF interest rate 2021 has been fixed at 7.1%. The Central Government of India has powers to decide PPF Interest rates for every 3 months. At the time of writing this **the interest rate on PPF account from January 1, 2021 to March 31, 2021 is 7.1%**.

**Following table shows the historical and latest data on PPF interest rates:**

Period | PPF Interest Rates | Change |
---|---|---|

1st January, 2021 – 31st March, 2021 | 7.10% | Nil |

1st October, 2020 – 31st December, 2020 | 7.10% | Nil |

1st July, 2020 – 30th September, 2020 | 7.10% | Nil |

1st April, 2020 – 30th June, 2020 | 7.10% | -0.8% |

1st January, 2020 – 31st March, 2020 | 7.90% | Nil |

1st October, 2019 – 31st December, 2019 | 7.90% | Nil |

1st July, 2019 – 30th September, 2019 | 7.90% | -0.1% |

1st April, 2019 – 30th June, 2019 | 8.00% | Nil |

1st January, 2019 – 31st March, 2019 | 8.00% | Nil |

1st October, 2018 – 31st December, 2018 | 8.00% | 0.4% |

1st July, 2018 – 30th September, 2018 | 7.60% | Nil |

1st April, 2018 – 30th June, 2018 | 7.60% | Nil |

1st January, 2018 – 31st March, 2018 | 7.60% | -0.2% |

01st October 2017 – 26th December 2017 | 7.80% | Nil |

01st July 2017 – 30th September 2017 | 7.80% | -0.1% |

01st April 2017 – 30th June 2017 | 7.90% | -0.1% |

01st January 2017 – 31st March 2017 | 8.00% | Nil |

01st October 2016 – 31st December 2016 | 8.00% | -0.1% |

01st July 2016 – 30th September 2016 | 8.10% | Nil |

01st April 2016 – 30th June 2016 | 8.10% | -0.6% |

01st April 2015 – 31st Mar 2016 | 8.70% | Nil |

01st April 2014 – 31st Mar 2015 | 8.70% | Nil |

01st Apr 2013 – 31st Mar 2014 | 8.70% | -0.1% |

01st Apr 2012 – 31st Mar 2013 | 8.80% | 0.2% |

01st Dec 2011 – 31st Dec 2012 | 8.60% | 0.6% |

01st Mar 2003 – 30th Nov 2011 | 8.00% | -1% |

01st Mar 2002 – 28th Feb 2003 | 9.00% | -0.5% |

01st Mar 2001 – 28th Feb 2002 | 9.50% | -1.5% |

15th Jan 2000 – 28th Feb 2001 | 11.00% | -1% |

01st Apr 1986 – 14th Jan 2000 | 12.00% | – |

The Government decides the interest rate of the PPF. After every 3 months government reviews the interest rate of all the small saving scheme along with the PPF. Because of this quarterly review, the PPF interest rate changes frequently.

The interest on PPF is given at the end of every financial year. That is why you must have seen interest addition in the statement on March 31. Because of this annual compounding the yield of PPF account is same as the declared interest rate.

Let me tell you that fixed deposits give interest rate after every three years thus compounding happen after every three months. This results in greater yield than the notional interest rate.

### How PPF calculator Works

Since compounding happens yearly, we have to use the annual interest rate in calculation. Whereas, in quarterly compounding case, the quarterly interest rate is used in the calculation. To get the maturity value of your regular investment, simple ‘future value’ formula is used. Note, this calculator is made for regular annual investment. The investment should be at the beginning of the financial year.

The calculator only gives you an idea of the regular PPF investment. The actual value may change as it depends upon several factors.

You would know that the interest rate of PPF changes every month. Thus return may vary.

- Your investment amount can fluctuate.
- Your investment date may be different in different years.
- You might not invest in April before 5th of the day.

## Assumptions of PPF Calculator

As I Have said, you can’t predict the maturity amount of PPF investment. Indeed, the future value of PPF depends upon many variables. However you can have an idea of the future value. To give you an idea through this calculator I have takes some assumptions. These are given below.

- You are investing lump sum amount once in a year.
- You are investing same amount in all the years.
- You are investing at the beginning of every financial year i. e. before April 5. You stick to this timeline throughout the whole period.
- The interest rate remain static during the period.

## PPF Calculation Formula

Since I have taken certain assumption, the maturity value calculation of PPF has become very easy. The simple compounding formula is used to get the future value. The formula is given below.

PPF Future Value = C x ( 1+r)^n

C = Cash Flow (regular investment amount)

r = Rate of Interest

n= Number of periods

You can also use PPF excel calculator to calculate maturity amount, and total interest earned.

Using this formula you can get future value of PPF investment in the excel as well. Also there is a future value function in the excel. This function can be also used to get the maturity value of the PPF account.

To use this function you have to enter following syntax.

=FV(<rate>, <number of periods>, <Regular investment>, <Initial Investment>, <1 >)

- The rate should be written with percentage sign.
- Number of periods should be number of years.
- regular investment is annual contribution.
- Initial investment is entered if there is any previous balance. else you can leave it blank.
- Since you invest at the beginning of the year you have to enter ‘1’. For the end of year you must write 0. however, 0 is not applicable with PPF investment.

## PPF Rules

PPF is a government saving scheme. It has certain rules and you should know about them.

- It is long term saving account. Generally, PPF account
**matures in 15 years.** - You can extend PPF account in block of
**5 years**, after the maturity - The interest rate of PPF is reviewed after every
**3 months.** - The investment in PPF account is eligible for
**tax deduction**. The maturity amount is also tax-free. - The investment in a PPF account is limited to the maximum amount of 80C deduction. Nowadays, it is 1.5 lacs.
**Minimum investment- ₹500 in a year**.**PPF account is limited to one**for a person.- You can open PPF account in the name of minor as well.
- You can take
**loan against PPF**account balance till the 6th years of account. - After 7 years, you can
**partially withdraw**from PPF account.

### PPF FAQ

What is current PPF Interest rate 2021?

PPF Interest rate 2021 for the current quarter is 7.1%.

What is the tenure of PPF account?

15 years is the minimum tenure of a PPF account. You have an option to extend it for another 5 years.

Can i take a loan on PPF account?

Yes, You can take a loan on PPF investment between third and fifth year.

Who can open a PPF account?

All Indian citizens are eligible to open a PPF account. However, Non-resident Indians (NRIs) are not eligible to open a PPF account.

Can i open multiple PPF accounts?

No, you can only open one PPF account in any bank or post office. However, you can open another PPF account on behalf of a minor.

How much can i invest in PPF?

The minimum and maximum amount you can invest in PPF is between ₹500 and ₹150000 per year respectively.