PPF Calculator SBI Variable Amount

PPF Maturity Formula:

\[ Maturity = \sum_{k=1}^{n} P_k \times (1 + i)^{n - k + 1} \]

Investment Period (years):

years

Interest Rate:

decimal

Yearly Deposits:

Year 1:$

Year 2:$

Year 3:$

Year 4:$

Year 5:$

Year 6:$

Year 7:$

Year 8:$

Year 9:$

Year 10:$

Year 11:$

Year 12:$

Year 13:$

Year 14:$

Year 15:$

Maturity Amount ($):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is PPF Calculator SBI Variable Amount?

Definition: This calculator computes the maturity amount for SBI Public Provident Fund (PPF) accounts with variable yearly deposits.

Purpose: It helps investors plan their PPF investments when they can't contribute fixed amounts every year.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ Maturity = \sum_{k=1}^{n} P_k \times (1 + i)^{n - k + 1} \]

Where:

$ Maturity $ — Final maturity amount ($)
$ P_k $ — Deposit in year k ($)
$ i $ — Annual interest rate (decimal, e.g., 0.071 for 7.1%)
$ n $ — Total investment period (years)
$ k $ — Current year (1 to n)

Explanation: Each yearly deposit compounds for the remaining tenure plus one year (PPF interest calculation method).

3. Importance of PPF Calculation

Details: Accurate PPF projections help in financial planning, tax savings estimation, and retirement planning.

4. Using the Calculator

Tips: Enter investment period (15 years default for PPF), current interest rate (7.1% default for SBI PPF), and your planned yearly deposits (can vary each year).

5. Frequently Asked Questions (FAQ)

Q1: Why does PPF use n-k+1 in the exponent?
A: PPF interest is calculated monthly but credited annually, with each deposit earning interest from the next month until maturity.

Q2: What's the minimum/maximum deposit for PPF?
A: Minimum $500/year, maximum $150,000/year (as of 2023). The calculator accepts any amounts within these limits.

Q3: Can I change deposits every year?
A: Yes, this calculator specifically handles variable annual deposits.

Q4: Is the interest rate fixed for entire tenure?
A: No, PPF rates change quarterly. This calculator uses a fixed rate for simplicity.

Q5: How accurate is this calculation?
A: It's accurate for annual projections but doesn't account for monthly compounding or rate changes during the tenure.