ICICI Bank PPF Calculator

What is ICICI PPF Calculator?

ICICI Bank PPF calculator  is an online tool for estimating how much an investor will receive from the money invested in a PPF account at the end of a 15-year lock-in period. ICICI PPF calculator takes into consideration variables such as investment and the current interest rate of the PPF and then calculates the final amount an investor receives at the end of the PPF tenure.

How does ICICI PPF Calculator work?

The ICICI PPF calculator is an online tool that eases the process of estimating the returns on a PPF account. By considering key parameters such as the investment frequency, investment amount, interest rate, and tenure, the calculator will estimate the maturity amount an investor receives at the end of the PPF’s tenure.

The Central government sets the interest rate on a quarterly basis, and the maturity tenure of a PPF is 15 years. These two parameters are usually pre-populated. The returns will be instantly displayed after you have keyed in the investment frequency and the investment amount.

How to use an ICICI PPF Calculator?

You can follow the easy steps mentioned below to use the ICICI PPF calculator and calculate expected returns from post office PPF investments accurately:

• Select the frequency of investment: The frequency of your investment will influence your maturity value. Ideally, select the ‘Monthly’ option if you are salaried for more convenient investment and accurate results.
• Enter the monthly PPF investment: It is the amount you wish to invest in the PPF account. You could input a monthly, quarterly, semi-annual, or annual amount. Also, ensure that your investment amount is not more than Rs 12,500 per month or Rs 1.5 lakh a year.
• Interest rate: The current interest rate for PPF investment will be auto-populated. Thus, you do not need to enter the interest rate. 
• Select the investment duration: It is the time you will continue your PPF investment. The minimum time available is 15 years, and you have the option to extend the term in batches of five years after that. The PPF calculator assumes that you will be investing the same amount till the time of maturity.
• Check the future value:  Once you enter all the above details, our calculator will automatically show the maturity amount.

What Is the ICICI PPF Calculator Formula?

The ICICI PPF calculator formula is as follows:

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

In which,

• M=Maturity value
• P=principal amount invested in the PPF account
• i=interest rate offered on the PPF
• n=total number of years an investor stays invested in PPF

How to calculate expected returns from ICICI PPF? 

The following formula is applied to determine the expected returns  of a PPF investment at maturity:

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

Now, suppose you invest Rs 1,20,000 per year in ICICI PPF for 15 years at the current interest rate of 7.1%. 

The maturity amount would be as follows:

M = 1,20,000[({(1+7.1) ^15}-1)/7.1] 

Thus, the maturity value of your ICICI PPF is Rs 32,54,567.

Example of ICICI PPF Calculation

You can invest a maximum of up to 1.5 lakh per financial year in a post office PPF account. If you invest Rs 12,000 per month at a 7.1% interest rate, the contribution during that period will be Rs 21,60,000.

The scheme provides compound interest, which will be Rs 17,45,481 in 15 years, which is the maximum duration one can invest. After the completion of the PPF scheme, the maturity amount will stand at Rs 39,05,481.

Suppose you extend the scheme for another 5 years, your investment will rise to Rs 28,80,000. The interest received will be Rs 35,11,956, and the maturity value will be Rs 63,91,956.

ICICI PPF Interest Rates FY 2024-25

The interest on PPF is calculated based on the minimum balance in an investor’s account, usually between the fifth and end of the month. The Central government revises the PPF interest rate every quarter. Over the past few years, the return has been experiencing a dip. The current ICICI Bank PPF interest rate is 7.1% per annum for 1 April - 30 June 2024.

Benefits of using an ICICI PPF calculator

A few of the  benefits of using a PPF calculator are as follows:

• The ICICI PPF calculator assists in providing a clear idea of the amount of the maturity amount an investor would be earning with a certain investment amount and investment period.
• It can aid in deciding on a maturity period for an investment at an investor’s convenience. The maturity period of PPF is 15 years, which can be extended in blocks of five years up to a maximum of 50 years.
• The PPF calculator displays an estimate of the total investment in a financial year and can aid an investor in seeking a balance between the investment amount and the desired returns.
• The scope of errors arising due to manual calculations can be avoided, which helps in saving time. 
• The ICICI PPF calculator can also be useful in the tax-planning phase to ensure better investment planning. 

Tax benefits of ICICI Bank PPF Investments

The PPF as an investment plan offers the advantage of exempt-exempt-exempt (EEE) tax status. The amount deposited in the PPF account in each financial year is tax-exempt. At the same time, the interest earned is tax-free, and the maturity amount, including the principal sum and the interest, is also tax-exempt. Moreover, under Section 80C of the Income-Tax Act (ITA), 1961, an investor can avail of tax exemption of up to Rs 1.5 lakh in a single financial year.