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PPF Calculation: Rs 1 crore in 25 years by saving Rs 12,500 per month!

PPF Calculator\Public Provident Fund Calculation: If you can save Rs 12,500 per month, you can accumulate over Rs 1 crore in 25 years with the help of Public Provident Fund (PPF). What’s more interesting is the fact that you won’t have to pay any tax on the amount withdrawn from the PPF account on maturity. You won’t even have to pay tax on the interest earned and the amount deposited in the PPF account.

Basically, if you are saving for the future and don’t want to put your heard-earned money at risk in the stock market, opening PPF account is a good option you can explore.

PPF account can be opened in Post Office and also in some public and private commercial banks like HDFC Bank, SBI, Axis Bank, ICICI Bank, PNB etc.

PPF calculator: How to get Rs 1 crore?

The PPF calculation at the current rate of 7.1 % compounded annually shows that you can accumulate Rs 39.44 lakh by saving and depositing Rs 12,500 per month for 15 years. Wondering how will this amount become Rs 1 crore?

Well, under the PPF rules, account holders are allowed to extend their account in blocks of five years beyond the compulsory 15 year lock-in period.

So if you don’t withdraw any amount after fifteen years and extend the account for 10 more years while continuing to make the monthly deposit of Rs 12500, you total wealth in 25 years will grow up to to Rs 1 crore. However, this will happen only if the current rate of interest on PPF account doesn’t changes. In the interest rate falls in future, your journey to Rs 1 crore will become longer. However, if the government increases the interest, you may become a crorepati sooner than expected!

You need to remember two things here:

The interest rates on PPF and other small savings schemes are revised by the government on quarterly basis. So the rate may go up or down dyring the entire tenure of the account.

Second, the returns on PPF account are guaranteed as it is backed by the Government of India’s sovereign guarantee. So you can invest in PPF without worrying about the guarantee of the return.

Public Provident Fund: What HDFC Bank PPF Calculator says

It shows that at the current rate of 7.1% interest, you can get Rs 39.4 lakhs after 15 years by depositing Rs 12,500 per month. You can access the official HDFC Bak PPF calculator here

PPF calculation chart at 7.1% interest

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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