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Calculation Details:
Annual Contribution: 150,000
Rate of Interest: 7.1%
Time Period: 15 years
Total Investment: 2,250,000
Total Amount: 4,152,021
Total Interest: 1,902,021
Calculation Formula:
Total Amount = Σ (Principal × (1 + (Rate / 12))^(12 × (Time - Year)))
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| SNo | Year | Invested | Interest Earned | Total Amount |
| 1 | 2024 | 150,000 | 11,003 | 161,003 |
| 2 | 2025 | 150,000 | 22,814 | 172,814 |
| 3 | 2026 | 150,000 | 35,491 | 185,491 |
| 4 | 2027 | 150,000 | 49,098 | 199,098 |
| 5 | 2028 | 150,000 | 63,703 | 213,703 |
| 6 | 2029 | 150,000 | 79,380 | 229,380 |
| 7 | 2030 | 150,000 | 96,207 | 246,207 |
| 8 | 2031 | 150,000 | 114,267 | 264,267 |
| 9 | 2032 | 150,000 | 133,653 | 283,653 |
| 10 | 2033 | 150,000 | 154,461 | 304,461 |
| 11 | 2034 | 150,000 | 176,795 | 326,795 |
| 12 | 2035 | 150,000 | 200,768 | 350,768 |
| 13 | 2036 | 150,000 | 226,499 | 376,499 |
| 14 | 2037 | 150,000 | 254,118 | 404,118 |
| 15 | 2038 | 150,000 | 283,762 | 433,762 |
| Total | 2,250,000 | 1,902,021 | 4,152,021 |
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Use this tool to calculate the maturity amount of your Public Provident Fund (PPF). The PPF is a long-term savings scheme introduced by the Government of India that offers attractive interest rates and tax benefits. It is designed to provide a safe investment avenue with guaranteed returns over a 15-year period.
Who Will Benefit:
- **Investors:** To determine the maturity amount of their PPF investments and plan future financial goals.
- **Tax Savers:** To utilize the PPF as a tax-saving instrument under Section 80C of the Income Tax Act.
- **Financial Planners:** For advising clients on retirement planning and long-term savings using PPF.
Where is PPF Applied?
- **Retirement Planning:** To build a corpus for retirement over a long period.
- **Education Funding:** To save for higher education expenses.
- **Goal Achievement:** For accumulating funds for future needs such as buying a house, starting a business, or major life events.
Formula Used:
The formula for calculating the maturity amount of a PPF account is:
M = P * [(1 + r/n)^(nt) - 1] / (r/n) * (1 + r/n)
Where:
- M = maturity amount
- P = annual contribution (total deposit per year)
- r = annual interest rate (decimal)
- n = number of times interest is compounded per year (typically 12 for monthly compounding)
- t = total time in years (15 years or less, depending on the investment duration)
Example:
To calculate the maturity amount of a PPF account with an annual contribution of $1,000, an annual interest rate of 7.1% compounded monthly, and a total investment period of 15 years, enter '1000' for the annual contribution, '7.1' for the annual interest rate, '12' for the number of times interest is compounded per year, and '15' for the number of years. Click 'Calculate Maturity Amount' to get the result. The formula used will be:
M = 1000 * [(1 + 0.071/12)^(12*15) - 1] / (0.071/12) * (1 + 0.071/12)
Note:
Ensure all inputs are entered correctly. The annual interest rate should be entered as a percentage (e.g., enter '7.1' for 7.1%). The time should be entered in years, and the compounding frequency should match the PPF's compounding schedule. Incorrect or invalid inputs will result in an error message.
The result will display the total maturity amount including the principal and interest earned. For example, entering an annual contribution of $1,000, an annual interest rate of 7.1%, compounded monthly, and a time period of 15 years will provide the maturity amount, helping you understand the total return on your PPF investment.
Additional Information:
- **Interest Rates:** PPF interest rates are set by the government and may change quarterly. Always check the latest rates from official sources.
- **Investment Limit:** The maximum annual contribution to a PPF account is ₹1.5 lakh. Contributions above this limit are not eligible for tax benefits.
- **Lock-in Period:** PPF has a lock-in period of 15 years. Partial withdrawals and loans against PPF are allowed under specific conditions after the 5th year.
- **Tax Benefits:** Contributions to PPF are eligible for tax deduction under Section 80C of the Income Tax Act. The interest earned and the maturity amount are also tax-free.