PPF calculator: Want to become crorepati? You only need to invest Rs 10,750 per month

PPF calculator: The coronavirus outbreak has made the markets volatile and investing in equity could be a risky option right now even though over the long run, it will give the best returns. However, these are tough times and instead, you should look to put money in schemes that give guaranteed returns. One such scheme is Public Provident Fund or PPF, Yes, it can make you a crorepati, if money is parked for long term. 

Interest rate on PPF is decided by the government every quarter and usually, it remains higher compared to other fixed investment instruments. Currently, the interest rate remains 7.1 per cent. If there is no change in this, all you need to invest is Rs 10,750 per month to become crorepati in just 25 years. 

A simple calculation on PPF calculator shows that you need to invest Rs 1,29,000 per year – Rs 10,750 per month – for 25 years. This will take your total investment to Rs 32,25,000 and the interest accumulated will be Rs 68,03,262, taking the total amount to Rs 1,00,28,262.

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Here is the Detailed break-up:

Tenure – 25 years 

Investment Per Year - Rs 1,29,000

Total Investment - Rs. 3,225,000

Total Interest - Rs 6,803,262

Maturity Amount - Rs 10,028,262

The catch here is that the PPF account matures in 15 years. However, you have the option to extend maturity by a block of five years with or without contribution. To accumulate Rs 1 crore through PPF, you have to extend the maturity of your PPF account by a block of five years twice.

PPF is considered one of the safest investment options and falls under 'Exempt Exempt Exempt (EEE)' investment category where the amount you invest every year (subject to the maximum limit of Rs 1.5 lakh), annual interest earned on this account and the maturity amount are exempt from income tax.