1. What is a PPF Calculator?

Definition: This calculator estimates the maturity value of a Public Provident Fund (PPF) account based on annual deposits, interest rate, and investment duration.

Purpose: It helps investors plan their long-term savings by projecting the growth of their PPF investments.

2. How Does the PPF Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final maturity amount ($)
• \( P \) — Annual deposit amount ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment duration in years (typically 15 years for PPF)

Explanation: The formula accounts for compound interest on annual deposits made at the beginning of each year.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings scheme with tax benefits. Accurate calculations help in financial planning and goal setting.

4. Using the Calculator

Tips: Enter the annual deposit amount, current PPF interest rate (default 7.1%), and investment duration (default 15 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: Why does PPF use this specific formula?
A: This formula accounts for annual compounding and assumes deposits are made at the beginning of each financial year.

Q2: What's the current PPF interest rate?
A: As of 2023, it's 7.1% (0.071 in decimal), but this changes quarterly based on government announcements.

Q3: Can I extend my PPF beyond 15 years?
A: Yes, in blocks of 5 years after the initial 15-year period. The calculator can accommodate any duration.

Q4: Are PPF returns tax-free?
A: Yes, PPF enjoys EEE (Exempt-Exempt-Exempt) status under most tax regimes.

Q5: What's the minimum and maximum investment?
A: Typically $500 minimum and $150,000 maximum per year, but check current regulations.