You can calculate the interest rate offered on the principal amount of the PPF by using the PPF calculator. This calculator can be used to calculate the interest rate offered on the principal amount of the PPF. By using a PPF calculator, you can save a large amount of time and effort compared to manually calculating the interest on the principal amount.

A PPF calculator will be presented in this blog and used to calculate PPF online.

**What is a PPF calculator?**

An online tool called a** PPF calculator** allows users to figure out how much interest is earned on their PPF deposited amount using a simple and error-free calculation. There is no need to use a bank-specific PPF calculator because all PPF scheme rules, guidelines, interest rates, maturity, tenure, withdrawal limits and rules are set by the government. It is easy to calculate PPF interest, and it is simple and error-free.

**PPF calculation formula: what is it?**

Whenever a PPF account holder calculates the interest based on the deposited value, a formula is applied. There is currently a rate of 7.1% compounded annually applicable to the PPF scheme. The interest rate is regulated by the government every quarter. The following information will help you understand what the formula to calculate PPF interest is, as well as the key points to remember.

- Interest rates are calculated based on the balance in a PPF account that has the lowest interest rate available
- In this calculation, the difference between the fifth and last day of the month is taken into account
- PPF account holders can earn interest on their deposits if they deposit before the 5th of each month. Otherwise, the interest will be calculated on their previous balance.
- A few hundred dollars will be lost to
**PPF interest**if the account holder invests before or after the 5th of every month. - PPF schemes should be invested in lump sums before April 5th if you want to do so on a yearly basis

**PPF Calculation Formula**

PPS interest is calculated as follows:

A = P [({(1+i) ^n}-1)/i]

where-

An A- represents a maturity amount

Principal (P-) is the amount of the loan

In economics, I- represents expected interest rates

N- represents the tenure of the investment

**When using a PPF calculator, what should you keep in mind?**

- A compound interest rate is applied once a year
- At the end of every fiscal year, compound interest is calculated.
- Interest rates are set by the government every quarter
- Due to the annual calculation of compound interest, the longer the investment period, the higher the interest earned

**Is it a good idea to use a PPF calculator?**

Using the PPF calculator involves the following points:

- An estimate of the interest rate a PPF account holder can earn is provided
- Making it easy to decide whether to extend PPF tenure for PPF account holders
- In advance, a PPF calculator allows you to calculate investment schedules. You can then plan what amount to invest, how much to borrow, or how much to withdraw every year.
- During a financial year, it estimates the total investment made

**FAQ**

**Would a PPF be a good investment?**

An individual should consider opening a PPF account depending on their needs and how long they can invest (especially 15 years). A PPF provides tax benefits as well as post-retirement support.

**What is the PPF account’s lock-in period?**

It is important to note that PPF accounts will have a lock-in period of 15 years, which means that investors can only invest in them for that long. However, individuals can make partial withdrawals from PPF accounts after 5 years of the account being opened.