A Public Provident Fund Calculator, or PPF Calculator, is an online financial tool that helps you estimate the future value and the interest earned from your investments in a PPF account. Estimating the potential growth of your investments allows you to make efficient financial planning and manage your long-term savings in a Public Provident Fund. A PPF Calculator is a simple and easy-to-use tool that can help you make informed investment decisions.
High ReturnsGet Returns as high as 17%*
Zero Capital Gains taxunlike 10% in Mutual Funds
Save upto Rs 46,800in Tax under section 80 C
PPF Rate of Interest (Yearly)
The PPF calculator is an online tool that can help you calculate the potential maturity amount and interest earned on your Public Provident Fund Account (PPF account).
The Public Provident Fund is a popular long-term investment scheme backed by the Government of India for a lock-in period of 15 years. It offers a fixed interest rate of 7.1% p.a. on your deposited money at present. The PPF scheme also provides tax benefits under Section 80C and Section 10 of the Income Tax Act of 1961.
A PPF calculator takes into account the following factors:
Prevailing interest rate
The calculator provides an estimated projection of the maturity amount and total earned interest from your investment.
A PPF calculator is a valuable tool that can assist you in planning your investments and estimating the potential returns on your PPF account contributions.
It helps you calculate the maturity amount, interest earned, and the duration required to reach your desired goal.
Using a PPF calculator, you can make informed decisions about how much to invest and for how long based on your financial objectives.
This calculator allows you to track your capital growth and stay updated on monthly interest rate fluctuation.
The PPF interest rate calculation formula takes into account the principal amount, the interest rate, and the investment duration of your contributions in the PPF account. The interest on PPF is compounded annually and is credited to the account at the end of each financial year.
The formula used in a PPF account calculator is as follows:
A = P * [(1 + r/n)^(n*t) - 1]
The formula represents the following variables:
A= Maturity amount
P= Principal amount
R= Annual interest rate
N= Number of times that interest is compounded per year
T= Number of years
Let us say you deposit in a PPF account as per the following details:
Contributions in PPF Account: Rs. 1 lakh
Annual interest rate (r): 7.1% (as of the last available data)
Compounded annually (n): 1
Investment period (t): 5 years
Using the formula mentioned earlier: A = P * [(1 + r/n)^(n*t) - 1]
A = 1,00,000 * [(1 + 0.071/1)^(1*5) - 1]
A = Rs. 40911.7972634
So, after 5 years, your PPF account will have approximately Rs. 140,911.79. This is the total maturity amount, which includes the principal (initial deposit) and the interest earned on it.
You can follow the steps mentioned below to use a PPF calculator in India:
Step 1: Open the online Policybazaar PPF Account Interest Rate Calculator.
Step 2: Enter the following details in the calculator:
Monthly/ Lump Sum Investment
Prevailing PPF Interest Rate
Investment Tenure (number of years you intend to keep the money invested in the PPF account)
Step 3: Once you have provided the necessary details, the PPF calculator will display the following details:
Estimated Maturity Amount
Total Invested Amount
Total Interest Earned
A PPF return calculator in India offers you several benefits. Some of them are as follows:
Accuracy: Ensures precise calculations of PPF investments, interest, and maturity amounts.
Time-saving: Quickly determines future values with the reduction of manual calculations.
Financial Planning: Helps in setting realistic savings goals and long-term financial planning.
Tax Efficiency: Using this calculator can help you to avoid paying high taxes on your income.
Flexibility: Allows you to experiment with different deposit amounts and tenures to optimize returns.
Transparency: Provides a clear picture of the potential growth of your PPF account over time.
Informed Decision Making: Enables informed decisions regarding PPF contributions and withdrawals.
A PPF calculator is an invaluable tool for individuals in India looking to make informed decisions about their PPF investments. By utilizing this calculator, you can accurately plan your finances, estimate potential returns, and make sound investment choices aligned with your financial goals.
The exact amount will depend on your initial deposit, the annual contributions, and the prevailing interest rate.
The interest is calculated on the minimum balance in your PPF account between the 5th and the end of each month.
The interest rate is determined by the government and can change annually.
The interest is added to your PPF account balance at the end of the financial year (March 31).
The new balance after adding interest becomes the base for interest calculation in the following year.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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