1. What is a PPF Calculator?

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

Purpose: It helps investors plan their long-term savings and understand the power of compounding in PPF accounts.

2. How Does the Calculator Work?

The calculator uses the PPF maturity formula:

Where:

• \( Maturity \) — Final amount at maturity (₹)
• \( P \) — Annual deposit amount (₹)
• \( i \) — Annual interest rate (in decimal)
• \( n \) — Investment period in years

Explanation: The formula accounts for annual compounding of interest on PPF deposits.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings scheme in India with tax benefits under Section 80C. Accurate calculations help in financial planning.

4. Using the Calculator

Tips:

• Minimum annual deposit: ₹500
• Maximum annual deposit: ₹1.5 lakh
• Minimum tenure: 15 years
• Current interest rate (July 2023): 7.1%

5. Frequently Asked Questions (FAQ)

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

Q2: Can I extend my PPF account beyond 15 years?
A: Yes, in blocks of 5 years after the initial 15-year period.

Q3: Are PPF returns taxable?
A: No, PPF enjoys EEE (Exempt-Exempt-Exempt) status under Indian tax laws.

Q4: Can I make monthly deposits instead of annual?
A: Yes, but the calculator assumes annual compounding. For monthly deposits, adjust accordingly.

Q5: What happens if I deposit more than ₹1.5 lakh in a year?
A: Amounts above ₹1.5 lakh won't earn interest and won't qualify for tax benefits.