Handy tool to calculate Public Provident Fund
PPF stands for Public Provident Fund. It is a popular long-term investment scheme in India that is backed by the government. PPF offers a safe and tax-efficient way for individuals to save money and build a corpus for their future financial needs, especially for retirement. It is a voluntary investment scheme that encourages individuals to save for the long term while enjoying tax benefits.
The PPF calculator simplifies the process of calculating the principal and interest accrued in your PPF account over a specific number of years. It eliminates the need for complex calculations or relying on an accountant.
The calculator takes into account the fluctuating interest rates, which are revised every three months, and considers the information you provide to perform the computation.
The timing of your investments is also important. If you make deposits before the 5th of each month, the interest for the entire financial year is calculated on the invested amount. However, if deposits are made after the 5th, the interest will be less, and the calculator adjusts the calculations accordingly.
With the PPF calculator, you can easily determine how much principal and interest have accumulated in your PPF account, making it a convenient tool for PPF account holders.
You can use the PPF maturity calculator to calculate your PPF within a second. The formula for calculator is given below:-
m = p [({(1+i) ^n}-1)/i]
Where,
m = Maturity Amount
P = Annual Instalments
i = Rate Of Interest
n = Total Number Of Years
Let me tell you in a simple way, so that you can understand the PPF calculations very easy.
1. If you invest 500 on 1st year at the rate of interest that is 7.1% added and therefor the maturity value for 1st year will be = 535.5
2. Now, If you invest 500 on the 2nd year then the maturity value will be (1st year maturity value + 2nd Year investment + rate of interest) = 1109.02
3. And Finally, If you invest 500 on the 3rd year then the maturity value will be (1st year of maturity value + 2nd year of maturity value + 3rd year of investment + rate of interest) = 1723.26