1. What is a Post Office PPF Interest Calculator?

Definition: This calculator estimates the interest earned on a Post Office Public Provident Fund (PPF) account based on the account balance and current interest rate.

Purpose: It helps investors plan their PPF investments by projecting the interest they can expect to earn.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Amount earned ($)
• Balance — PPF account balance ($)
• i — Interest rate (in decimal, e.g., 7.1% = 0.071)

Explanation: The account balance is multiplied by the interest rate (converted to decimal) to calculate the annual interest.

3. Importance of PPF Interest Calculation

Details: Understanding potential interest helps with financial planning, comparing investment options, and maximizing tax-free returns under Section 80C.

4. Using the Calculator

Tips: Enter your current PPF balance and the interest rate (default 7.1%). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the Post Office PPF interest rate is 7.1% compounded annually.

Q2: How often is PPF interest calculated?
A: Interest is calculated monthly but credited annually at the end of each financial year.

Q3: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q4: What's the minimum and maximum investment?
A: Minimum ₹500/year, maximum ₹1.5 lakh/year for tax benefits.

Q5: Can I change the interest rate?
A: Yes, though the calculator defaults to 7.1%, you can adjust it if rates change.