Download App
HomeOur StoryMethodologyLearnFAQs

SBI 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 SBI PPF calculator is a free-to-use calculator that allows you to estimate PPF returns. It can help you determine the potential returns of a PPF account by entering details like yearly investment amount and duration of the investment. Once the details are given, the calculator will compute the potential returns.

Public Provident Fund (PPF):

PPF stands for Public Provident Fund and is a government-backed savings scheme. It comes with a 15-year lock-in period and provides better returns than alternatives like a fixed deposit. PPF is also a great way to lower your tax liability during your working life.

How the SBI PPF Calculator Works:

Below is the formula for how the SBI PPF calculator works:

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:

We can understand the formula better with an example. You are planning to invest ₹25,000 every year for 20 years. The interest rate is fixed at 7.1%. Let's put the values in the calculator formula.

Converting the interest rate, i = 7.1/100 = 0.071

M = 25,000 [(1 + 0.071^20) - 1) / 0.071] x (1+ 0.071)
M = 25,000 (41.44591) x (1.07)
M = ₹11,08,678 (approximately)

If you invest ₹25,000 every year for 20 years in PPF, you will be able to earn over ₹11 lakhs.

How to Use the SBI PPF Calculator:

Using the SBI PPF calculator is simple. All you need to do is input some basic details, and the calculator will help you determine the total invested amount, total interest, and the maturity value.

Step 1: Type in the amount that you wish to invest in the PPF scheme.
Step 2: Enter the number of years you wish to stay invested in the scheme.
Step 3: The interest rate remains fixed. Right now, the interest rate is 7.1%.
Step 4: When you enter all the details, the calculator tells you the maturity amount you will earn through the investment in PPF.

Example:

Ms. Beena wishes to invest ₹15,000 every year in PPF and wishes to continue her investments for 20 years. Here's how we can calculate the maturity value of her investment in PPF.

M = 15,000 [(1 + 0.071)^ 20 - 1) / 0.071 x (1 + 0.071)
M = 44,139.9 / 0.071 x (1.071)
M = ₹6,65,829

If Ms. Beena invests ₹15,000 annually and continues to invest for 20 years, her maturity value would be ₹6.6 lakhs.

Benefits of Using SBI PPF Calculator:

There are several advantages of using the SBI PPF calculator. We have mentioned a few of them below.

  • The PPF calculator will help you get error-free results. On the other hand, making manual calculations can be incredibly complex.
  • The calculator will help you plan your retirement better by telling you how much you will be able to earn as a maturity amount after a certain period.
  • The calculator allows you to compare the potential returns of a PPF account with other investment options. This helps you make informed decisions about where to allocate your funds.

SBI PPF Calculator - Frequently Asked Questions (FAQs)

What is the minimum investment limit for PPF?
The minimum contribution amount for PPF is ₹500 and the maximum limit is ₹1.5 lakhs.
Can I withdraw the full PPF amount after 15 years?
Yes. You can withdraw the entire investment amount, as well as, the interest earned, after the expiry of the lock-in period i.e. 15 years.
Can I open more than one PPF account?
Under the PPF rules of 2019, an individual cannot open more than one PPF account. If anyone has two or more accounts on or after 12 December 2019, all the accounts shall be closed without any interest payment. There is also no provision for merging the accounts.
Can I close my PPF account before maturity?
No. The PPF account has a lock-in period of 15 years. However, if you are in need of funds, you can choose to partially withdraw funds after the completion of six years. You can withdraw up to 50% of the total balance at the end of the fourth financial year immediately preceding the year of withdrawal or the total balance at the end of the financial year immediately preceding the year of withdrawal whichever is lower.