1. What is a PPF Interest Rate Calculator?

Definition: This calculator computes the interest earned on a Public Provident Fund (PPF) account in India based on the current balance and interest rate.

Purpose: It helps Indian investors estimate their PPF account growth and plan their long-term savings strategy.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Annual interest earned ($)
• Balance — Current PPF account balance ($)
• i — Current PPF interest rate (7.1% = 0.071)

Explanation: The interest is calculated by multiplying the account balance by the current PPF interest rate.

3. Importance of PPF Interest Calculation

Details: Accurate interest calculation helps in financial planning, understanding compounding benefits, and comparing PPF with other investment options.

4. Using the Calculator

Tips: Enter your current PPF balance and the current interest rate (default 0.071 for 7.1%). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate in India?
A: As of 2023, the PPF interest rate is 7.1% (0.071 decimal) per annum, compounded yearly.

Q2: How often is PPF interest calculated?
A: Interest is calculated monthly but credited annually at the end of the financial year.

Q3: Is PPF interest taxable?
A: No, PPF interest is completely tax-free under Section 10 of the Income Tax Act.

Q4: What's the minimum and maximum PPF investment?
A: Minimum ₹500/year, maximum ₹1.5 lakh/year (as of 2023).

Q5: Can I change the interest rate?
A: The government sets PPF rates quarterly. Use the current rate (default 7.1%) unless you're calculating for a different period.