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DSP 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 DSP PPF calculator is a user-friendly online tool designed to assist you with PPF-related calculations. By entering your yearly deposit amount, the calculator can estimate the accumulated amount over the next 15 financial years.

The Public Provident Fund (PPF) scheme is a tax-saving and savings plan in India supported by the Central Government. The scheme aims to mobilize small savings by offering good returns and income tax benefits. The current PPF interest rate is 7.1% per annum, compounded annually, and under the old regime contributions of up to ₹1.5 lakh a year count towards section 123 (the old Section 80C). The interest and the maturity amount are not taxed.

How Does The DSP PPF Calculator Work?

The DSP PPF calculator operates using the following formula to estimate the corpus your investment will accumulate after a certain number of years:

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:

For instance, you plan to invest ₹500 every month in PPF, totaling ₹6,000 annually, and continue this investment for 35 years. Here's how you can calculate the maturity amount for your PPF investment:

M = 6,000 x [(1 + 0.071)^35 - 1] / 0.071 x (1 + 0.071) M = ₹9,07,914 (approximately).

By investing ₹6,000 every year in PPF for 35 years, you can accumulate a corpus of over ₹9 lakhs.

How Should You Use The DSP PPF Calculator?

To use the DSP PPF calculator effectively, follow these steps:

Step 1: Enter the amount you intend to invest every year in PPF. You can choose whether you wish to invest monthly, quarterly, semi-annually, or annually.
Step 2: Specify the number of years you plan to stay invested in PPF.
Step 3: The calculator typically uses the fixed interest rate of 7.1%.
Step 4: Once you've provided these details, the calculator will estimate the total investment amount, total interest earned, and the maturity amount.

Example:

Let's take the example of Mr. Qureshi, who plans to invest ₹69,000 annually in PPF for 15 years. With the current PPF interest rate at 7.1%, you can calculate the maturity amount of Mr. Qureshi's PPF investment as follows:

M = 69,000 x [(1 + 0.071)^15 - 1] / 0.071 x (1 + 0.071) M = ₹6,58,193 (approximately).

By investing ₹69,000 every year and continuing the PPF investment for 15 years, Mr. Qureshi can expect a maturity amount of over ₹6.5 lakhs.

Benefits Of Using The DSP PPF Calculator

Using the DSP PPF calculator offers several advantages, including:

  • Helping you determine the optimal investment horizon to achieve your financial goals.
  • Providing error-free results and eliminating the need for manual calculations.
  • Offering insights into the investment amount required to meet your goals.

DSP PPF Calculator - Frequently Asked Questions (FAQs)

Can I transfer my PPF account?
Yes. You can transfer your PPF accounts between authorized banks and post offices. The PPF account will be regarded as a continuous account in this scenario.
How much amount will I receive after 15 years?
Your maturity amount will depend on the amount you have interest and the interest rate offered by PPF.
What happens if PPF is not paid?
In case you have missed your PPF payment in any financial year, your account will be marked as inactive. To activate your account, you will have to pay a penalty of ₹50 and make a deposit for the years you have missed paying the deposit. Once you do this, your account will be reactivated, and start earning interest again.