Most of us have some kind of savings to fall back on in case of a financial need. But not everyone puts their money into investments, especially due to the risk of losses. If you’re one of those people, the Public Provident Fund, also known by the acronym PPF, is one of the safest ways for you to start investing.
PPF is one of the most popular government-backed, tax-saving investment schemes in India. Under this scheme, an individual invests for a period of 15 years with an aim of long-term wealth accumulation.
Thus, in order to get the best long-term returns from your Public Provident Fund investments, it’s imperative you calculate your interest regularly and invest accordingly.
The PPF amount calculator offered by NDTV Profit is an online tool that calculates the amount of interest an individual can earn on their PPF account investments. This PPF calculator will accurately tell you the total amount that will be invested in your PPF account, the total interest you can earn on your PPF investments, and the total maturity value of your PPF account.
To obtain this, all you have to do is enter the following details into the Public Provident Fund Calculator given above:
1. Sum of intended yearly investment into the PPF account.
2. The time period you wish to invest for(the minimum tenure for PPF investment is 15 years).
3. The current rate of interest offered on a PPF account(usually this rate is already entered in the calculator as announced by the government).
The online PPF calculator offered by NDTV Profit is a handy tool to calculate your PPF maturity amount in an extremely effortless manner. All you have to do is follow the steps mentioned below
Scroll up to reach the NDTV Profit PPF Calculator.
Enter/adjust the amount you intend to invest every year.
Enter/adjust the Time Period i.e. the number of years you want to invest for. Here the minimum tenure for investment is 15 years.
Enter the interest rate offered for your PPF investment. There’s a high chance this will already be given as a default option in almost every PPF calculator.
That’s it, the calculator will now show the total amount to be invested by you over the tenure, the total interest you’ll be earning throughout the tenure and the total value of your PPF account on maturity.
The formula used by the PPF calculator to determine the PPF interest that can be gained on your investment is quite a complex one. Given below is the aforementioned formula:
F = P [({(1+i) ^n}-1)/i]
In this formula, F stands for the Sum available at the maturity of PPF, i represents the rate of interest applicable on your PPF investments, N stands for the total number of years the PPF account will be operational for, and P represents the amount you intend to invest annually to your PPF account.
For example: If an individual invests ₹1,50,000 annually for a period of 20 years, the total amount invested would be ₹30,00,000. Meanwhile, the total interest earned during this period would be ₹36,58,288 at the rate of the current 7.1% interest per annum. Hence, the total value of their PPF account during maturity would be ₹66,58,288.
Calculating your PPF interest on your own can prove to be a big headache. Moreover, interest rates on PPF accounts might get revised, meaning you’ll have to calculate this every time to get the best out of your investments. So, instead of going through the tedious process of doing it manually, it’s always better to get your PPF interest rate calculated with the help of an online PPF calculator.
Moreover, NDTV Profit’s PPF calculator is designed to produce accurate results when it comes to PPF, whether it’s the interest you’ll earn of your final amount on maturity.
