A Public Provident Fund (PPF) is a popular investment scheme offered by the Indian government that aims to promote savings among individuals. The PPF scheme is a safe and secure long-term investment option that offers attractive interest rates and tax benefits. If you are planning to invest in PPF, it is essential to calculate the returns you can expect from your investment. This is where the PPF calculator online comes in handy.
What is a PPF Calculator Online?
A PPF calculator online is a tool that helps you calculate the returns on your PPF investment. It is an easy-to-use and free online tool that allows you to calculate the maturity amount, interest earned, and the total investment made over a specific period. All you need to do is input the investment amount, the duration of the investment, and the current PPF interest rate.
How does the PPF Calculator Online work?
The PPF calculator online works on a simple formula that takes into account the investment amount, duration of investment, and the current PPF interest rate. The formula used by the PPF calculator online is:
M = P[{(1+r/n)^n*t}-1]/(1-(1+r/n)^(-n))
Where:
M = Maturity amount
P = Principal amount (investment amount)
r = Rate of interest
t = Time period (duration of investment)
n = Number of times interest is compounded per year (quarterly, half-yearly or annually)
The PPF calculator online uses this formula to calculate the maturity amount of your PPF investment.
Benefits of using a PPF Calculator Online
The PPF calculator online has several benefits. Some of the significant advantages of using the PPF calculator online are:
- Accurate calculations: The PPF calculator online provides accurate calculations of the maturity amount, interest earned, and the total investment made over the investment period. You can get an idea of the returns you can expect from your investment in a matter of seconds.
- Saves time: Calculating the maturity amount of your PPF investment manually can be time-consuming and complicated. With the PPF calculator online, you can calculate the returns on your investment in a matter of seconds.
- Helps in financial planning: The PPF calculator online helps you in financial planning by providing an estimate of the returns you can expect from your PPF investment. It can help you plan your future expenses and investments accordingly.
- Free and easy to use: The PPF calculator online is a free and easy-to-use tool that requires no special skills or knowledge to operate. All you need to do is input the investment amount, duration of investment, and the current PPF interest rate.
How to use the PPF Calculator Online?
Using the PPF calculator online is easy. Follow these simple steps to calculate the returns on your PPF investment:
Step 1: Open the PPF calculator online on your web browser.
Step 2: Enter the investment amount in the “Investment Amount” field.
Step 3: Enter the duration of the investment in the “Investment Duration” field. The investment duration should be in years.
Step 4: Enter the current PPF interest rate in the “Interest Rate” field.
Step 5: Click on the “Calculate” button to get the maturity amount, interest earned, and the total investment made over the investment period.
Conclusion
The PPF calculator online is a useful tool that can help you calculate the returns on your PPF investment accurately. It is a free and easy-to-use tool that can save you time and effort. By using the PPF calculator online, you can get an estimate of the returns you can expect from your PPF investment and plan your future expenses and investments accordingly.