PPF needs no introduction. Many people ensure that they utilize the full investment limit of their PPF accounts every year. So naturally, they are concerned about the rate of interest on PPF accounts (currently 7.8%) and also about estimating the final PPF maturity amount.
I have created a small excel based PPF calculator that can be useful if you wish to estimate how much money can be accumulated using PPF.
Using this calculator, you will easily find answers to questions like how much you can invest? How much interest is earned? How will the investment grow over the years? Final PPF maturity amount? And since you can control the investment as well as maturity tenure in the excel sheet, it can be your goto option if you are searching for:
- PPF calculator for 15 years, or
- PPF calculator for 20 years, or
- PPF calculator for 25 years, or even
- PPF calculator for 30 years
All you have to do is to provide few inputs and this PPF excel sheet will tell you everything you need to know about your PPF investments.
Decide your PPF investment frequency (Monthly, Quarterly, Half Yearly, Annual)
Decide till when you wish to keep investing in PPF (15, 20, 25 or 30 years)
Decide when you finally wish to withdraw money from PPF (end of 15th, 20th, 25th or 30th year)
PPF accounts are opened for an initial term of 15 years and once the lock in period of 15 years is over, the subscriber can withdraw the full amount at the time of maturity. PPF account withdrawal rules allow for partial withdrawals even before the 15-year lock-in is over. But we will ignore that scenario as we are concerned about estimating the maturity amount of an undisturbed fully funded PPF account.
Luckily, PPF rules allow that the account can be extended in blocks of 5 years. Subscribers can chose whether they want to extend with contributions or without contributions. So if you decide, you can continue investing even after the 15th year.
So using the two inputs of your investment period and maturity/withdrawal year in the calculator, you can figure out the final maturity amounts for following combinations:
- Invest in PPF for 15 years. Withdraw at end of 15th year
- Invest in PPF for 15 years. Withdraw at end of 20th year
- Invest in PPF for 15 years. Withdraw at end of 25th year
- Invest in PPF for 15 years. Withdraw at end of 30th year
- Invest in PPF for 20 years. Withdraw at end of 20th year
- Invest in PPF for 20 years. Withdraw at end of 25th year
- Invest in PPF for 20 years. Withdraw at end of 30th year
- Invest in PPF for 25 years. Withdraw at end of 25th year
- Invest in PPF for 25 years. Withdraw at end of 30th year
- Invest in PPF for 30 years. Withdraw at end of 30th year
Apart from this, the calculator also gives the option of setting the annual investment limits and interest rates (yellow cells) for each year separately.
Both the PPF account interest rate and annual investment limits can be varied for each financial year.
This is useful as the government is known to increase the maximum annual limit of PPF deposit every few years. Currently, the maximum PPF investment limit per year is Rs 1.5 lakh (mid-2017). You can check for scenarios where the limit is increased by say Rs 50,000 every 3-4 years.
Note – The calculator assumes that you would invest the full amount as prescribed by the limit. But you can play around with the excel sheet and bypass this restriction yourself.
The PPF interest rates too don’t remain same forever. But the rate of interest in PPF account in post offices, banks or anywhere else is same at a given point of time. The calculator shows it at 8% for all years 1 to 30. In reality, this will not happen. Current PPF interest rate is 7.8% (mid-2017). But as per current PPF account rules, the government has the option of changing PPF rates every quarter now.
The PPF interest rates in last 10 years are as follows:
- PPF Interest Rate Mar-2003 to Nov-2011 – 8.0%
- PPF Interest Rate Dec-2011 to Mar-2012 – 8.6%
- PPF Interest Rate 2012-2013 – 8.8%
- PPF Interest Rate 2013-2014 – 8.7%
- PPF Interest Rate 2014-2015 – 8.7%
- PPF Interest Rate 2015-2016 – 8.7%
- PPF Interest Rate 2016-17 (April 2016 – September 2016) – 8.1%
- PPF Interest Rate 2016-17 (October 2016 – March 2017) – 8.0%
- PPF Interest Rate 2017-18 (April 2017 – June 2017) – 7.9%
- PPF Interest Rate 2017-18 (July 2017 onwards) – 7.8%
For more information, you can have a look at the historical PPF Interest Rates to get an idea about rate fluctuations and changes in PPF rules.
Note – The interest on PPF investments is calculated on a monthly basis. So all your monthly PPF contributions count. However, the total yearly interest is added to the PPF account at the end of the financial year. This should be remembered when doing PPF interest rate calculation or looking how to calculate PF amount at end of the year. The calculator provided in this post has embedded PF calculation formula in excel which you can download freely.
Realistic PPF Investment Scenario Testing
You can test out various PPF interest rate and investment limit related scenario using this tool.
Using a combination of increasing annual limits and falling rates (rates are expected to go down gradually as the Indian economy matures), you can try out various scenarios yourself. One such hypothetical scenario can be:
- Year 1-5: PPF annual investment limit Rs 1.5 lakh: PPF rate 8.0%
- Year 5-10: PPF annual investment limit Rs 2.0 lakh: PPF rate 7.5%
- Year 10-15: PPF annual investment limit Rs 2.5 lakh: PPF rate 7.0%
- Year 15-20: PPF annual investment limit Rs 3.0 lakh: PPF rate 6.5%
- Year 20-25: PPF annual investment limit Rs 3.5 lakh: PPF rate 6.0%
- Year 25-30: PPF annual investment limit Rs 4 lakh: PPF rate 5.5%
It will be interesting to see how these changes play out and impact the final maturity amount.
Here is the link to download the PPF calculator excel sheet:
And to get you going, here are some examples of the calculations of maturity amounts. Don’t miss the 3rd example:
Example – 1
Annual Investment (in April) – Rs 1.5 lakh lumpsum
Rate of Interest – 8.0%
Investment Period – 15 years
Maturity Amount (at the end of 15th year) ~ Rs 44 lakh
Maturity Amount (at the end of 25th year) ~ Rs 95 lakh
As you can see, this example illustrates how you can use this tool as a PPF Fixed Annual Investment Calculator.
Example – 2
Monthly Investment – Rs 12,500 per month (Rs 1.5 lakh annually)
Rate of Interest – 8.0%
Investment Period – 20 years
Maturity Amount (at the end of 20th year) ~ Rs 71 lakh
Maturity Amount (at the end of 30th year) ~ Rs 1.54 crore
This is an example of using this excel based calculator for estimating maturity amount when monthly investments/contributions are made in your PPF account.
Example – 3 (Realistic)
Annual Investment – Rs 1.5 lakh (years 1-5); Rs 2.0 lakh (yrs 5-10); Rs 2.5 lakh (yrs 10-15)
Rate of Interest – 8% (yrs 1-5); 7% (yrs 5-10); 6% (yrs 10-15); 5% (yrs 15-25)
Investment Period – 15 years
Maturity Amount (at the end of 25th year) ~ Rs 85 lakh
So you can create your own unique scenario basis your estimates about future investment limits and rate of interest on PPF accounts.
Here is the link again:
I hope you find this Excel PPF interest and maturity calculator useful. You can use it as a PPF maturity calculator for 15 years, 20 years, 25 years or even 30 years.
Using an online or excel based PPF interest calculator to estimate your maturity amount is fine. But if you are investing for long term financial goals, PPF or other debt instruments might not be enough. You need to have more exposure to equity (why?).
So go on… use this PPF calculator excel xlsx sheet and see if you are actually using your provident fund investments (PPF or others) to create wealth or not. PPF is a solid debt-based savings product that can be used to save some serious money. Don’t ignore it and use it judiciously.