1. What is a PPF Calculator For Extended Period?

Definition: This calculator estimates the maturity amount of a Public Provident Fund (PPF) account when extended beyond the initial 15-year period.

Purpose: It helps investors plan their long-term savings by projecting returns on PPF investments during extension periods.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final maturity amount ($)
• \( Initial \) — Initial PPF balance at start of extension ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( extension \) — Extension period in years
• \( New\ Deposits \) — Additional deposits made during extension ($)

Explanation: The initial amount grows at compound interest during the extension period, and new deposits are added to the total.

3. Importance of PPF Extension Calculation

Details: PPF accounts can be extended in blocks of 5 years after the initial 15-year period. Calculating potential returns helps in financial planning.

4. Using the Calculator

Tips: Enter the initial PPF balance, current interest rate (default 7.1%), extension period in years, and any new deposits planned during extension.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the PPF interest rate is 7.1% (0.071 in decimal), but this may change quarterly.

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

Q3: Are there limits on new deposits during extension?
A: Yes, the annual deposit limit of ₹1.5 lakh continues to apply during extension periods.

Q4: Is the interest compounded annually?
A: Yes, PPF interest is compounded annually and credited at the end of each financial year.

Q5: Are PPF returns tax-free during extension?
A: Yes, the EEE (Exempt-Exempt-Exempt) tax status continues during extension periods.