1. What is a PPF Monthly Interest Calculator?

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

Purpose: It helps investors understand how much interest their PPF account generates each month.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Interest — Monthly interest earned ($)
• Min Balance — Minimum account balance during the month ($)
• i — Annual interest rate (in decimal form, e.g., 0.071 for 7.1%)

Explanation: The annual interest is calculated by multiplying the minimum balance by the interest rate, then divided by 12 months to get the monthly amount.

3. Importance of PPF Interest Calculation

Details: Understanding monthly interest helps with financial planning and assessing the growth of your PPF investment over time.

4. Using the Calculator

Tips: Enter the minimum account balance in dollars and the current PPF interest rate in decimal form (default 0.071 for 7.1%). All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: How is the minimum balance determined?
A: PPF interest is calculated on the lowest balance between the 5th and last day of each month.

Q2: What's the current PPF interest rate?
A: As of 2023, it's typically 7.1% (0.071 decimal), but this changes quarterly.

Q3: Is the interest compounded monthly?
A: No, PPF interest is compounded annually but credited at year-end.

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

Q5: When is the interest credited to the account?
A: Interest is calculated monthly but credited to the account at the end of each financial year.