Download App
HomeOur StoryMethodologyLearnFAQs

Mirae 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 Mirae PPF calculator is a useful tool for investors looking to estimate potential returns on their PPF investments over a specified period. Using the provided formula, it calculates the total value of your investment after a set number of years, based on a given PPF account interest rate. This calculator can greatly assist investors in efficient investment planning.

The Public Provident Fund (PPF) scheme is one of the most popular government-backed tax-saving investment options in India, frequently used to build retirement savings. PPF offers consistent returns with low risk. Currently, the PPF interest rate stands at 7.1%, and the scheme has a lock-in period of 15 years.

How Does The Mirae PPF Calculator Work?

The Mirae PPF calculator operates using 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:

Suppose you plan to invest ₹4,200 every year in PPF and continue for 45 years. Using the formula:

M = 4,200 x [(1 + 0.071)^45 - 1) / 0.071 x (1 + 0.071) M = ₹13,24,380 (approximately).

Investing ₹4,200 annually for nearly four and a half decades in PPF could result in a maturity value of over ₹13 lakhs.

How Should You Use The Mirae PPF Calculator?

Using the Mirae PPF calculator is straightforward and requires just two inputs:

Step 1: Enter the annual investment amount, specifying the frequency: monthly, quarterly, semi-annually, or annually.
Step 2: Enter the number of years for your PPF investment, with a minimum lock-in period of 15 years.
Step 3: The calculator typically uses the current fixed interest rate of 7.1%.
Step 4: After providing these details, the calculator will estimate the total investment amount, interest earned, and maturity value using the PPF calculation formula.

Example:

Consider the example of Mr. Shekar, who plans to invest ₹1,08,000 annually in PPF and withdraw only after the end of the 15-year lock-in period. Using the calculator formula with the current PPF interest rate:

M = 1,08,000 x [(1 + 0.071)^15 - 1] / 0.071 x (1.071) M = ₹29,29,105 (approximately).

By investing ₹1,08,000 annually for 15 years in PPF, Mr. Shekar could potentially achieve a maturity amount of over ₹29 lakhs at the end of the investment tenure.

Benefits Of Using The Mirae PPF Calculator

Utilizing the Mirae PPF calculator offers numerous advantages, including:

  • Helping you fine-tune your investment to achieve specific financial goals.
  • Eliminating complexity and potential errors in manually calculating maturity amounts.
  • Guiding you on the investment duration required to reach a particular corpus.

Mirae PPF Calculator - Frequently Asked Questions (FAQs)

How much interest do we get from PPF?
The interest rate of the PPF scheme is not fixed and it keeps changing every year. Whenever the Government of India revises interest rates, the new rates are applied to both existing and new PPF account holders. The current interest rate offered by PPF to investors is 7.1%.
What are the alternatives to PPF?
The alternatives to the PPF scheme are ELSS (Equity Linked Savings Scheme), ULIP (Unit Linked Insurance Plan), NPS (National Pension Scheme), NSC (National Savings Certificate), tax-saving fixed deposit, Senior Citizen's Saving Scheme (SCSS) and others
Is PPF investment tax-free?
Yes. The interest and the maturity amount from a PPF account are not taxed. On top of that, contributions of up to ₹1.5 lakh a year count towards section 123 (the old Section 80C), under the old regime only.