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UTI 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 UTI PPF calculator is a useful tool for investors to determine the interest earned and maturity value of their investments. By providing the maturity amount, this calculator enables you to make informed comparisons between PPF and other investment options, helping you decide if PPF aligns with your financial plan. It relieves you from the hassle of manually performing complex calculations.

The Public Provident Fund (PPF) is a government-backed scheme in India offering tax benefits and secure returns to investors. The scheme comes with a 15-year lock-in period and provides the flexibility to take loans against the account for various expenses such as weddings or a child's education.

How Does The UTI PPF Calculator Work?

The UTI PPF calculator operates based on the following formula for performing calculations:

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 start investing in PPF, contributing ₹19,000 annually and continuing your investment for 35 years, with the current PPF interest rate at 7.1%. Using the formula:

M = 19,000 x [(1 + 0.071)^35 - 1) / 0.071 x (1 + 0.071) M = ₹28,75,061 (approximately).

By investing ₹19,000 annually for 35 years in PPF, you could potentially accumulate a maturity amount of over ₹28.75 lakhs.

How Should You Use The UTI PPF Calculator?

If you have a PPF account and want to calculate the principal and interest that you'll accrue over a specific period, the UTI PPF calculator makes the process much simpler. Here's how you can use it:

Step 1: Enter the investment amount you intend to contribute to your PPF account. You can choose the frequency of your contribution (monthly, quarterly, semi-annually, or annually).
Step 2: Select the investment tenure. The minimum lock-in period is 15 years, and you can extend it in blocks of 5 years afterward.
Step 3: The calculator typically uses the current fixed interest rate of 7.1%.
Step 4: Once you provide these details, the calculator will estimate the total investment amount, interest earned, and maturity value based on the PPF calculation formula.

Example:

Let's consider the case of Mr. Varun, who is planning to invest in PPF and intends to invest ₹5,600 annually for 25 years. Using the formula:

M = 5,600 x [(1 + 0.071)^25 - 1) / 0.071 x (1 + 0.071) M = ₹3,84,832 (approximately).

By investing ₹4,600 annually for 25 years in PPF, Mr. Varun could potentially accumulate a corpus of nearly ₹4 lakhs.

Benefits Of Using The UTI PPF Calculator

The UTI PPF calculator provides numerous benefits to investors, including:

  • Offering a clear projection of what your investments will yield at maturity, aiding in more effective investment planning.
  • Helping you understand if your current investment amount is sufficient to meet your goals or if you should consider increasing your contribution.
  • Being a free tool that can be used multiple times.

UTI PPF Calculator - Frequently Asked Questions (FAQs)

How PPF interest rate is calculated?
The PPF interest is calculated on the minimum balance between the 5th day and the last day of the month. The interest rate for the PPF calculation will be the one announced for the quarter. You can maximize your returns for the year by depositing the maximum amount between the 1st to 5th of April of every financial year.
Is the PPF amount taxable?
No. The interest and the maturity amount are not taxed. Under the old regime, deposits of up to ₹1.5 lakh a year also count towards section 123 (the old Section 80C).
When does my PPF investment mature?
Your PPF account will mature 15 years from the end of the financial year in which you opened it. The account can be extended for a block of 5 years at a time, after the maturity period.