1. What is a PPF Interest Calculator?

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

Purpose: It helps 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 — Amount earned ($)
• Balance — Current PPF account balance ($)
• i — Annual interest rate (in decimal form, e.g., 7.1% = 0.071)

Explanation: The current balance is multiplied by the interest rate to calculate the annual interest amount.

3. Importance of PPF Interest Calculation

Details: Understanding PPF interest helps in financial planning, comparing investment options, and projecting long-term wealth accumulation.

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

Q2: What's the current PPF interest rate?
A: As of 2023, it's typically 7.1% (0.071 decimal), but check with your bank for current rates.

Q3: Is PPF interest compounded?
A: Yes, PPF interest is compounded annually, though this calculator shows simple annual interest.

Q4: Are there tax benefits on PPF interest?
A: Yes, PPF interest is tax-exempt under Section 80C of the Income Tax Act.

Q5: What's the minimum balance required?
A: Minimum annual deposit is typically $500, but this calculator works with any positive balance.