PPF Maturity Amount Calculator

PPF Maturity Formula:

\[ M = P \times \left(\frac{(1 + i)^n - 1}{i}\right) \times (1 + i) \]

Maturity Amount ($):

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1. What is a PPF Maturity Amount Calculator?

Definition: This calculator estimates the maturity amount of a Public Provident Fund (PPF) investment based on annual deposits, interest rate, and investment period.

Purpose: It helps investors plan their long-term savings by projecting the future value of their PPF investments.

2. How Does the Calculator Work?

The calculator uses the formula:

\[ M = P \times \left(\frac{(1 + i)^n - 1}{i}\right) \times (1 + i) \]

Where:

$ M $ — Maturity amount ($)
$ P $ — Annual deposit ($)
$ i $ — Annual interest rate (as decimal)
$ n $ — Investment period (years)

Explanation: The formula accounts for compound interest on annual deposits made at the beginning of each year.

3. Importance of PPF Calculation

Details: PPF is a popular long-term investment scheme with tax benefits. Accurate maturity projections help in financial planning.

4. Using the Calculator

Tips: Enter the annual deposit amount, current 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, the PPF interest rate is 7.1% per annum, but this may change quarterly.

Q2: What's the minimum and maximum investment period?
A: PPF has a minimum lock-in period of 15 years, extendable in blocks of 5 years.

Q3: How many deposits can I make per year?
A: Minimum 1 deposit (max $500) and maximum 12 deposits (max $150,000) per financial year.

Q4: Are PPF returns taxable?
A: No, PPF enjoys EEE (Exempt-Exempt-Exempt) status under tax laws.

Q5: Can I withdraw before maturity?
A: Partial withdrawals are allowed from the 7th financial year onward under certain conditions.