1. What is a PPF Lump Sum Calculator?

Definition: This calculator estimates the maturity amount for a lump sum investment in a Public Provident Fund (PPF) account.

Purpose: It helps investors understand how their one-time PPF investment will grow over time with compound interest.

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( Maturity \) — Final amount at maturity ($)
• \( P \) — Initial lump sum investment ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Investment period in years

Explanation: The formula calculates how an initial investment grows with compound interest over the specified period.

3. Importance of PPF Calculations

Details: PPF is a popular long-term savings scheme with tax benefits. Understanding potential returns helps in financial planning.

4. Using the Calculator

Tips: Enter the lump sum amount, current PPF interest rate (default 7.1%), and investment period (default 15 years). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, it's 7.1% (0.071 in decimal), but check with your bank for current rates.

Q2: What's the minimum PPF investment period?
A: The minimum is 15 years, extendable in blocks of 5 years.

Q3: Are PPF returns taxable?
A: No, PPF returns are tax-free under Section 80C of the Income Tax Act.

Q4: Can I add more funds after the initial investment?
A: Yes, but this calculator only computes for the initial lump sum amount.

Q5: How often is interest compounded in PPF?
A: Interest is compounded annually but credited at the end of the financial year.