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Central Bank PPF Calculator

₹
Yr
Rate of interest p.a
7.1%
Total invested₹ 75,000
Total interest₹ 60,607
Maturity value₹ 1,35,607
Invested amountTotal returns

The Central Bank of India PPF calculator offers a comprehensive assessment of the potential returns you can expect from your PPF account. It calculates interest and maturity amounts based on inputs such as your yearly investment, interest rate, and investment horizon.

The Public Provident Fund (PPF) is a government-backed scheme with various benefits. It features a 7.1% annual interest rate compounded annually. Under the old regime, contributions of up to ₹1,50,000 a year count towards section 123 (the old Section 80C) of the Income-tax Act, 2025. Additionally, loans can be availed against PPF, making it a favored investment choice for many with a low-risk appetite.

How Does The Koshex Central Bank PPF Calculator Work?

The Central Bank calculator operates based on the following formula:

M = P [(1 + i)^n - 1) / i] x (1 + i)

Where:

M is the maturity amount
P is the annual contribution
i is the annual rate of interest
n is the number of years

Example:

Let's say you plan to invest ₹1,50,000, the maximum allowed in PPF, and remain invested for 30 years with an interest rate of 7.1%. Here's how you can calculate your earnings using the formula:

M = 1,50,000 x [(1 + 0.071)^30 - 1) / 0.071 x (1 + 0.071) M = ₹1,55,18,790 (approximately).

With an annual investment of ₹1,50,000 in PPF for 30 years, you can accumulate a substantial ₹1.5 crores.

How Should You Use The Central Bank PPF Calculator?

To use the Central Bank PPF calculator, follow these steps:

Step 1: Enter your annual investment amount.
Step 2: The interest rate is pre-filled at 7.1% and cannot be changed.
Step 3: The investment tenure is pre-filled at 15 years but can be extended in 5-year blocks.
Step 4: After entering the details, the calculator will provide the total investment amount, interest earned, and maturity amount.

Example:

Consider Mr. Harish, who plans to invest ₹1,15,000 annually for 20 years with a current interest rate of 7.1%. Here's how you can calculate Mr. Harish's maturity amount using the calculator formula:

M = 1,15,000 x [(1 + 0.071)^20 - 1) / 0.071 x (1 + 0.071) M = ₹51,04,686 (approximately).

Mr. Harish will accumulate a maturity amount of over ₹51 lakhs by investing ₹1,15,000 annually for 20 years.

Benefits Of Using The Central Bank PPF Calculator

The Central Bank PPF calculator offers several benefits, including:

  • User-friendly interface for ease of use.
  • Accurate results in just a few clicks.
  • Helps investors plan for retirement and achieve their financial goals.

Central Bank PPF Calculator - Frequently Asked Questions (FAQs)

How much interest can I get on my PPF account?
The Central Government announces the interest rate every quarter. The current interest rate on the PPF account stands at 7.1%.
How is the PPF maturity period calculated?
The maturity period for PPF is 15 years from the end of the financial year when the first investment is done. For example, if you made the first investment in June 2020, then your first full year of investment would be April 2021 to March 2024 and your account would mature in March 2036.
Are PPF investments eligible for tax benefits?
Yes, under the old regime. Deposits of up to ₹1,50,000 a year count towards the section 123 limit.
What are the documents required for opening a PPF account?
The documents required for opening a PPF account are completed and signed Form A, duly filled pay-in slip Form B, nomination Form E duly filled and signed, two recent passport-size photographs, identity proof, and address proof.