PPF Maturity Amount:
Total Investment:
Total Interest Earned:
Year | Maturity Value | Total Investment | Total Interest Earned |
---|
An online PPF calculator helps the investor to come to a number of returns that can be acquired and the savings growth or maturity amount per investment through the years according to the contribution amount, nominal rate of interest, and investment duration. This helps investor to have a golden insight on investment in PPF. It can be for anyone who wishes to invest in PPF but is unaware of the amount required to be invested or the returns invited.
Using a PPF calculator offers several benefits:
Using a PPF calculator is pretty easy. Here’s what you need to do:
PPF calculator is an easy tool to track your account balance and its growth. It helps to address questions related to changing interest rates and how the maturity value is affected by the fluctuating interest rate regime around it. Any PPF account opening form would require basic information like the sum of initial deposit, tenure and investment frequency. In contrary to this, the PPF Calculator helps you visualise definite profit and ground the PPF calculations in your system.
A PPF calculator uses a formula similar to that for calculating the future value of an annuity. The formula is:
M = P [ ( (1 + i) ^ n - 1 ) / i ] Where: M = Maturity benefit P = Annual installments i = Interest rate n = Number of years
This formula helps calculate the maturity value of your PPF investment.
For instance, if you deposit Rs 1,00,000 annually for 15 years at the rate of interest of 7.1 per cent, your maturity value will be:
M = Rs 1,00,000 [ ( (1 + 0.071) ^ 15 - 1 ) / 0.071 ] = Rs 27,12,139
Some of the key advantages include:
How is the interest calculated on PPF investment?
The interest on the PPF account is declared by the government. It would be applicable to your PPF account from the beginning of the quarter with reference to the balance in your PPF account as on the preceding five days before the beginning of the quarter. Park your deposits before the end of the five-day period.
What is the minimum lock-in period for PPF?
Contract a minimum of 15 years, renewable at intervals of five years, you can request to withdraw funds only five years from the day you start investing, withdraw completely or partially.
What is the minimum amount required to invest in PPF?
You can start investing in PPF with as little as ₹500.
How much can i get returns in PPF after 15 years?
The maturity amount is also the amount invested plus the interest that has compounded over 15 years: the yield on the investment multiplied by the principal.
Is PPF investment tax-free?
Yes – whether it’s interest earned or the maturity amount, investments of ₹1.5 lakh each year qualify for income tax exemption. Contributions to such accounts are eligible for tax deductions.
How is the PPF maturity period calculated?
The maturity sum is also the investment sum compounded over 15 years of yearly yield: the yield on the investment multiplied by the principal.