1. What is a PPF Calculator for 15 Years?

Definition: This calculator estimates the maturity amount of a Public Provident Fund (PPF) investment over 15 years with annual contributions.

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 formula:

Where:

• \( M \) — Maturity amount ($)
• \( P \) — Annual deposit ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)

Explanation: The formula accounts for annual compounding over 15 years, with each deposit earning interest for different periods.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings instrument with tax benefits. Accurate calculation helps in financial planning and goal setting.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why 15 years specifically?
A: PPF has a mandatory lock-in period of 15 years, though it can be extended in blocks of 5 years.

Q2: What's the current PPF interest rate?
A: As of 2023, it's 7.1% (0.071 in decimal), but check current rates as they're revised quarterly.

Q3: Can I deposit more than once per year?
A: Yes, but this calculator assumes one annual deposit. For multiple deposits, the calculation would differ.

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

Q5: What's the minimum and maximum annual deposit?
A: Typically $500 minimum and $150,000 maximum, but check your country's regulations.