1. What is a PPF Calculator for 25 Years?

Definition: This calculator estimates the maturity amount of a Public Provident Fund (PPF) account after 25 years of annual contributions.

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

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final amount after 25 years ($)
• \( P \) — Annual deposit amount ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)

Explanation: The formula accounts for compound interest on annual deposits over the 25-year PPF tenure.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings instrument in many countries with tax benefits. Accurate projections help in financial planning.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why 25 years specifically?
A: PPF accounts have a maturity period of 15 years, but can be extended in blocks of 5 years, making 25 years a common planning horizon.

Q2: What's the current PPF interest rate?
A: Rates vary by country and change quarterly. Check with your PPF provider for current rates (default is 7.1%).

Q3: Can I calculate for partial years?
A: This calculator assumes full 25-year compounding. For partial periods, different calculations are needed.

Q4: Does this account for tax benefits?
A: No, this calculates only the maturity amount. Consult a tax advisor for tax implications.

Q5: What if I change my annual deposit amount?
A: This assumes constant annual deposits. For variable deposits, each year's contribution would need separate calculation.