PPF Calculator: How Much to Invest in Order to Make More than 1 Crore?

Launched in 1968, PPF’s primary aim was to create small savings, a lucrative investment tool for individuals across the nation.

PPF, or Public Provident Fund, is an efficient financial tool for individuals who are disciplined and can stay invested for a longer tenure. You can generate substantial wealth amounting to Rs.1 Crore through PPF investments if you start early on. In this regard, you can utilize a PPF calculator to assess the amount of savings you could make over a specified tenor.

PPF Calculator

This online tool can help you understand your wealth generation capacity and assist you in meeting your long-term financial obligations. Read on to know the ways through which you can maximize your PPF returns.

How Much to Invest to Generate Rs.1 Crore through PPF?

The interest rate on the Public Provident Fund currently stands at 7.1%. This rate is compounded annually by the Government of India.

Now, assuming that the rate of interest for PPF in India remains constant for the coming 25 years and individuals park their money in this instrument on a disciplined basis, they can earn a substantial amount. Here’s how.

As per the PPF calculator, if you invest Rs.1,50,000 on a yearly basis for the coming 25 years, you will be able to accumulate as much as Rs.1,03,08,015 in your PPF account. 

Now, you may not have such substantial investment strength during the early years. If that is the case, you can start with small investments and gradually increase your investment sum as your income rises. 

What are the Ways to Accumulate Substantial Wealth through PPF?

You can choose between two different ways to accumulate enough wealth over time through this investment route. Find about them below:

1. Continuous investment until you generate desired corpus

The first option is to invest continuously in your PPF account until you accumulate the corpus you need. As mentioned above, you need to deposit around Rs.1.5 Lakh every year until 25 years to accumulate Rs.1 Crore. 

However, if you do not want to wait for 25 years, you will have to increase your investment corpus. You can start by increasing this sum by some percent every year until you reach your goal.

2. Growing fund until you generate desired corpus

Your second option is to keep your investment fixed at a predetermined tenor and leave your money to earn interest and grow the fund until you reach the needed corpus.

For example, consider investing Rs.1.5 Lakh every year for 15 years. Considering the rate of interest remains 7.1% throughout the tenor, your returns till now will result in around Rs.40 Lakhs. You can now stop any further investments and keep the amount in your PPF for some years or more. This will help you earn interest on your accumulated investments. 

To determine which method shall work best for you, you can take the help of a PPF calculator.

How to Use a PPF Calculator?

A PPF calculator is an online tool that allows individuals to calculate the return on PPF investments. It eliminates the need for manual calculations and displays the needed results in seconds. Mentioned below are the steps to utilize this calculator:

Step 1: Visit a preferred platform and navigate to the PPF calculator section

Step 2: Upon opening the calculator, enter the yearly investment amount you have anticipated

Step 3: Enter the tenor through which you want to stay invested

Upon entering all these details, the calculator will display the total returns you will earn with regard to the investment amount and tenor. It also shows the interest amount on your investment. 

What are the Advantages of Using a PPF Calculator?

Since this calculator displays instant results in relation to PPF investments, it exhibits various benefits. Find them below:

  • This device helps you understand the amount of interest you can earn on your investment amount over a certain period of time.
  • You can decide the maturity period of your PPF investment through this calculator. By calculating your expected returns, you will know how much to invest over a specified tenor to earn a substantial corpus.
  • The calculator displays accurate results within seconds, which makes it reliable to use. Furthermore, it is available for free across various websites. It is also extremely convenient to use and requires a few easy steps to complete the calculation.

Using this calculator can also help you in tax planning since PPF investments are eligible for tax deductions of up to Rs.1.5 Lakh each year. However, PPF also comes with a lock-in period of 15 years, which makes it difficult for individuals to make premature withdrawals. In this concern, you can look out for FD investments through platforms like Bajaj MARKETS. This is a diversified marketplace featuring Fixed Deposit investment options from various banks and financial institutions.

Evidently, a PPF calculator is an indispensable tool that can help you carry out long calculations in a matter of seconds. However, apart from a PPF, consider parking your money in different investment vehicles to generate the most returns.

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