Description

It calculates the compound interest earned on the deposits made in the PPF account. PPF interest is compounded annually, meaning the interest earned each year is added to the principal for the next year's calculation. Contributions to PPF accounts qualify for tax deductions under Section 80C of the Income Tax Act, and the interest earned is tax-free. This is automatically factored into the growth calculations.

The formula for PPF Calculator:

P Principal amount.

r Annual interest rate.

n Number of years.

Advantages

• Instead of manually calculating complex compound interest, a PPF calculator does it in seconds. It saves you the time and effort of doing the math, making it user-friendly and efficient.
• A PPF calculator gives you a precise estimate of how much your investment will grow over time, factoring in compound interest and the duration of your investment. This helps you understand exactly what you will get at maturity.
• By using a PPF calculator, you can forecast your future savings and plan your finances more effectively. It allows you to set realistic goals and determine how much you need to contribute each month to achieve your desired maturity amount.