1. What is a PPF Calculator With Existing Balance?

Definition: This calculator estimates the maturity amount of a Public Provident Fund (PPF) account that has an existing balance and receives regular annual contributions.

Purpose: It helps investors project their PPF account growth over time, considering both their current balance and future contributions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Maturity \) — Final amount at maturity ($)
• \( Existing \) — Current balance in PPF account ($)
• \( P \) — Annual deposit amount ($)
• \( i \) — Annual interest rate (in decimal, e.g., 0.071 for 7.1%)
• \( n \) — Number of years until maturity

Explanation: The formula accounts for compound interest on both the existing balance and annual contributions, with interest being compounded annually.

3. Importance of PPF Calculations

Details: Accurate PPF projections help with retirement planning, tax-saving strategies, and long-term financial goal setting.

4. Using the Calculator

Tips: Enter your current PPF balance, planned annual deposit, current interest rate (default 7.1%), and investment period in years.

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 change my annual deposit amount?
A: Yes, you can vary deposits between ₹500 to ₹1.5 lakh annually, but this calculator assumes constant annual deposits.

Q3: How often is interest compounded in PPF?
A: Interest is compounded annually and credited at the end of each financial year.

Q4: What's the maximum investment period for PPF?
A: The PPF account has a 15-year maturity, but can be extended in blocks of 5 years.

Q5: Are PPF withdrawals taxable?
A: No, PPF maturity amounts are completely tax-free under Section 10C of Income Tax Act.