The PPF calculator is a free online tool that you can use to calculate the long-term returns you can get from your public provident fund investments. Public Provident Fund (PPF) is one of the most popular government-backed tax saving investment schemes in India.
You can check PPF return by using Fincal PPF calculator Online or Fincal Mobile App. A Fincal PPF calculator can be used to determine the earned interest periodically and the return amount at the time of maturity. It is a simple-to-use tool available in market.
What is PPF?
PPF (Public Provident Fund) is a long-term savings and investment scheme offered by the Government of India to encourage individuals to save for their future. It provides attractive returns along with tax benefits, making it a popular choice for secure financial planning.
PPF having benefit of guaranteed returns which is backed by the government, making it a safe investment. It has good tax efficiency and offers a triple tax benefit (contribution, interest, and maturity). It provide wealth accumulation which is ideal for long-term goals like retirement or education.
If you are planning to save for the future, then PPF is best investment option for you. Calculating the interest rates and returns on your PPF account turns a bit difficult. To make these difficult calculations easy, Fincal PPF calculator Online or FIncal Mobile App can be used.
Key Features of PPF:
- Tenure: The PPF account has a fixed tenure of 15 years, which can be extended in blocks of 5 years.
- Interest Rate: The interest rate is set by the government and reviewed quarterly. It is typically higher than regular savings accounts.
- Investment Limit: Minimum allowed is ₹500 per year. Maximum allowed is ₹1.5 lakh per year. Contributions can be made in a lump sum or installments.
- Tax Benefits: Contributions are eligible for tax deduction under Section 80C of the Income Tax Act. Interest earned and maturity amount are tax-free.
- Premature Withdrawal: While the funds are locked in, early withdrawal is possible but may attract a penalty, reducing the effective returns.
- Partial Withdrawal: Allowed after the 7th financial year.
- Loan Facility: Loans can be availed against the balance in the PPF account from the 3rd to the 6th year.
PPF is a secure and tax-efficient way to build a financial corpus over time.
What is a PPF Calculator?
A PPF (Public Provident Fund) Calculator is a financial tool that helps you estimate the maturity amount of your investment in a Public Provident Fund (PPF), including the total interest earned over the investment tenure.
Key Features of a Public Provident Fund Calculator:
- Principal Amount (Investment): The amount you contribute annually to your PPF account.
- Tenure: The standard tenure for PPF is 15 years, but it can be extended in blocks of 5 years.
- Interest Rate: The government sets the PPF interest rate quarterly (e.g., 7.1% as of recent updates).
- Compounding Frequency: Interest is compounded annually.
- Maturity Amount: The sum of your contributions and the interest earned over the tenure.
Formula Used to PPF Maturity Calculator
PPF calculations works:
A = P × [(1 + r)^n − 1] / r
Where:
- A: Maturity amount.
- P: Annual contribution
- r: Annual interest rate (in decimal form).
- n: Total number of years invested
If you deposit ₹50,000 annually in a PPF account for 15 years at an interest rate of 7.1%, you will receive approximately ₹13,56,070 at maturity
Below Fincal PPF Calculator Online tool provide you graphical representation of your PPF investments. Also Fincal Mobile app available on Android play store which provide PPF calculator service on the go.
Benefits of a PPF Interest Calculator
- Saves Time: Automatically computes the maturity amount, avoiding manual effort.
- Accurate Estimates: Ensures precise calculation, considering compounding effects.
- Financial Planning: Helps you plan your savings and understand the long-term growth of your investment.
Frequently Asked Questions (FAQs):
What is a Public Provident Fund (PPF)?
PPF is a long-term savings scheme offered by the Government of India that provides tax benefits and compounded returns.
What is the tenure for a PPF account?
The standard tenure for a PPF account is 15 years, but it can be extended in blocks of 5 years.
How is interest calculated on PPF?
Interest is compounded annually and credited to the account at the end of each financial year.
What is the maximum annual contribution to a PPF account?
The maximum annual contribution to a PPF account is ₹1.5 lakh as per current regulations.
Can I withdraw money from my PPF account before maturity?
Partial withdrawals are allowed after the completion of 7 years, subject to certain conditions.
Are PPF returns taxable?
No, PPF returns are tax-free under Section 10(11) of the Income Tax Act.
Which is best mobile app or website available to calculate PPF returns?
Android Fincal Mobile App or Fincal PPF Calculator Online tool accurately calculate PPF return for you.
Any financial calculator available online?
To know more about Financial Calculator