Saving money is the first step toward fund management. There are numerous savings options available; nevertheless, look for those that ensure greater returns with lesser risks. PPF accounts are among the most common investment options chosen by general salaried and self-employed individuals. PPF accounts, or Public Provident Fund accounts, are used to invest your hard-earned money. PPF is an ideal option for you if you are a new recruit or a responsible person looking to save money for the coming years. However, calculating the rate of interest and yields on your PPF account can take time and effort. So, you can use the **public provident fund calculator** to simplify these complicated calculations.

## What is PPF?

The Public Provident Fund (PPF) was established in India in 1968 with the goal of mobilizing surplus funds in the form of invested capital that has a yearly return on it. It is still a popular investment option for several investors because the yields are tax-free. It is also known as a savings-cum-tax savings investment scheme because it allows an individual to build a retirement fund while saving on income tax every year. So, anyone seeking a secure investment opportunity that will save them taxes while also earning them fixed returns must open a PPF account. Before we talk about the **PPF calculator****,** let’s see how you can open a PPF account first.

**Opening a PPF Account**

It is simple to set up a PPF account. All that is required is the submission of an application form, as well as KYC, proof of address, proof of identity, and signature proof. PPF accounts can be set up at any Post Office or other nationalized bank in India. Some private banks are also permitted to assist in the opening of PPF accounts.

The investment made in a PPF account is locked in it for fifteen years. However, after six years are complete, you can withdraw money at the beginning of the seventh year. You can only withdraw money once every year from your PPF account. To understand the numbers related to the returns of investment, you need to use an accurate** PPF interest calculator.**

**Minimum Tenure of a PPF Account**

PPFs have a minimum tenure of 15 years, and the tenure can be extended in 5-year increments without any limits. Moreover, the minimum and the maximum money invested in a PPF account per year is Rs. 500 and Rs. 1,50,000, respectively. You can either invest in one single payment or up to 12 monthly instalments every year. PPF deposits must be deposited at least once yearly for the next 15 years.

## What is a PPF Calculator

Processing complex calculations may be challenging for every one of us. If you want to invest in PPF but are still determining what amount you should put in or how much you’ll get back on a specific amount, an** online PPF calculator** can help you.

Once you’ve determined how much you can spend on investments on a routine basis, the calculator uses a 15-year duration and the current rate of interest offered by the government to evaluate your overall returns.

## How Can a PPF Calculator Help You?

Let’s see how a PPF calculator can help you plan your investment and accurately estimate your return on your investments.

- The calculator answers all of your queries regarding how the account works.
- You will have a precise estimation of how much yield you can expect for a specific amount of investment.
- You can use the calculator repeatedly until you achieve the ideal balance between the amount you need to invest and the amount you want to earn.
- The
**PPF interest calculator**is automated, so manual calculations can be avoided, as can errors. - You can utilize the calculator during the tax planning phase to better plan your investments.
- Because the PPF account can be extended beyond the lock-in period, you can get an understanding of how long you have for retirement and the amount of wealth you can accumulate until that day.

## How Does the PPF Interest Calculation Work?

Every **PPF account interest rate **calculator uses a specific formula to calculate the maturity amount of the PPF. Here’s the formula:

*F = P [({(i + 1) ^ n} – 1) / i]*

Here, in this formula:

F = The total amount of money after the maturity of the PPF.

i = The annual rate of interest.

n = Number of years it will take for the PPF fund to mature.

P = The yearly instalments.

So, for instance, if you pay Rs. 1.5 lakhs towards the yearly instalments for 15 years straight, and the average annual rate of interest is 7.10%. The total amount of money you will get after your PPF account matures will be Rs. 40,68,209.

## How Can You Use a PPF Calculator?

To get the most out of this incredible computing tool, you must first learn how it works. Its user-friendliness and accuracy make it a device worth using. The user’s only responsibility is to enter values into areas of focus, and you’re done. The **PPF interest rate calculator **requires this information: tenure, the overall sum invested, interest earned, and the amount of money invested either monthly or annually.

- Fill in the required fields, and the total maturity amount will be displayed within seconds.
- If a person deposits money on April 1st, interest will be estimated according to the financial year. This rate of interest may be influenced by inflation.

## Conclusion

PPF is a simple investment opportunity that assists both salaried and self-employed individuals in saving for their retirement. It is government-backed, carries relatively insignificant risks, and provides a tax-efficient method for making investments over time, especially for retirement. However, because you will be making multiple investments to a PPF account in the form of instalments, calculating the maturity value can be an extremely bothersome process, even if you understand the formula. As a result, you should use an online **public provident fund calculator**, which can make calculating the maturity value of the PPF investments much more straightforward.