# PPF Calculator

# PPF Calculator

To calculate the maturity value of your PPF account, you can use the following formula:

**M = P x [(1+r/n)^(n*t) – 1]/(r/n)**

Where:

**M: Maturity value of the PPF account**

**P: Principal amount (the amount invested in the PPF account)**

**r: Annual interest rate (expressed as a decimal)**

**n: Number of times the interest is compounded in a year (usually 12)**

**t: Number of years for which the investment is made**

**Here is an example of how to use this formula:**

Suppose you invest Rs. 1,00,000 in a PPF account for 15 years at an interest rate of 7.1% per annum. Here’s how you can calculate the maturity value of your PPF account:

**r = 7.1% per annum = 0.071/12 per month (monthly interest rate)**

**n = 12 (interest compounded monthly)**

**t = 15 years**

**M = 1,00,000 x [(1+0.071/12)^(12*15) – 1]/(0.071/12)**

**M = Rs. 3,03,362**

Therefore, the maturity value of your PPF account after 15 years of investment would be Rs. 3,03,362.

## PPF

PPF stands for Public Provident Fund, which is a savings scheme offered by the Indian government. It was introduced with the aim of providing a long-term savings option to individuals along with tax benefits. PPF is a safe investment option as it is backed by the government and offers a fixed rate of interest.

PPF accounts can be opened at any authorized bank or post office in India. The minimum investment amount is Rs. 500 and the maximum is Rs. 1.5 lakh in a financial year. The tenure of the account is 15 years, which can be extended in blocks of 5 years. The interest rate is determined by the government and is currently at 7.1% per annum (as of April 2023).

The interest earned on PPF investments is tax-free and the investment amount qualifies for a tax deduction under Section 80C of the Income Tax Act up to Rs. 1.5 lakh in a financial year. The maturity amount is also tax-free.

PPF is a good investment option for those who are looking for a safe and long-term investment with tax benefits. However, it is important to note that PPF is not a liquid investment and premature withdrawal is only allowed after completion of 5 years, subject to certain conditions.