What is PPF (Public Provident Fund) ?
PPF is a long-term savings scheme launched by the Government of India. It’s meant to help individuals save for retirement, earn interest, and get tax benefits, all in a safe and secure way.
✅ Key Benefits of PPF
Safe & Government-backed
- Exempt at investment: You get a tax deduction under Section 80C (up to ₹1.5 lakh).
- Exempt on interest earned.
- Exempt at maturity — the full amount is tax-free.
Tax-Free Savings (EEE Benefit)
- Your money is safe — backed by the Government of India.
- Zero risk of loss (unlike stock market or mutual funds).
Good Returns (Compounded Yearly)
- Around 7% to 8% interest (decided by government every quarter).
- Interest is compounded annually — meaning more growth over time.
Disciplined Long-Term Saving
- 15-year lock-in helps you build a large retirement or emergency fund.
- Encourages regular savings habit.
Partial Withdrawal & Loan Facility
- You can take a loan after 3 years.
- You can withdraw partially after 7 years (if needed).
Formula used for calculating PPF
SnappyCalc uses below formula to calculate the PPF (Public Provident Fund). Formula is given below.
\[ A = P \times \left(1 + \frac{r}{100} \right)^n \]
🔍 Where:
- \[ A = \text{Maturity Amount} \]
- \[ P = \text{Annual Contribution (Principal Amount)} \]
- \[ r = \text{Annual Interest Rate (\%)} \]
- \[ n = \text{Tenure (in years)} \]
This formula assumes that a fixed amount \( P \) is invested once every year for \( n \) years, and interest is compounded annually at a rate \( r\% \).
How to Use Our PPF Calculator Tool
Our PPF Calculator is designed to help you quickly estimate the maturity amount you can expect from your Public Provident Fund investment. To use it, simply enter the amount you plan to invest each year, the current interest rate (as notified by the government), and the duration for which you intend to invest (minimum 15 years).
The calculator will instantly show you the total maturity amount, including the interest earned over the investment period. It helps you plan your long-term financial goals, such as retirement, child’s education, or building a tax-free corpus, with ease and accuracy.
The tool uses the standard compound interest formula with annual compounding to provide reliable and transparent results.
