Ppf Calculator With Existing Balance

PPF Calculation Formula:

\[ FV = existing \times (1+r)^t + annual \times \frac{(1+r)^t -1}{r} \times (1+r) \]

Existing Balance (INR):

INR

Annual Contribution:

INR

Interest Rate:

Time Period:

years

Future Value of Existing Balance:

Future Value of Annual Contributions:

Total Future Value:

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1. What is PPF Calculator With Existing Balance?

This calculator helps estimate the future value of your Public Provident Fund (PPF) account by considering both your existing balance and future annual contributions. It accounts for compound interest to project your PPF growth over time.

2. How Does the Calculator Work?

The calculator uses the PPF compound interest formula:

\[ FV = existing \times (1+r)^t + annual \times \frac{(1+r)^t -1}{r} \times (1+r) \]

Where:

\( existing \) — Current PPF balance (INR)
\( annual \) — Annual contribution amount (INR)
\( r \) — Annual interest rate (decimal)
\( t \) — Time period in years

Explanation: The formula calculates compound interest on existing balance and future value of annuity (annual contributions) separately, then combines them.

3. Importance of PPF Calculation

Details: PPF is a popular long-term savings scheme in India with tax benefits. Accurate projections help in financial planning and retirement preparation.

4. Using the Calculator

Tips: Enter current PPF balance, planned annual contribution, current PPF interest rate, and investment period. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current PPF interest rate?
A: As of 2023, the PPF interest rate is 7.1% per annum, but it's revised quarterly by the government.

Q2: What is the minimum and maximum investment in PPF?
A: Minimum ₹500/year, maximum ₹1.5 lakh/year. You can open only one PPF account in your name.

Q3: What is the PPF tenure?
A: PPF has a maturity period of 15 years, extendable in blocks of 5 years.

Q4: Are PPF returns taxable?
A: No, PPF enjoys EEE (Exempt-Exempt-Exempt) status - contributions, interest, and maturity amount are all tax-free.

Q5: Can I withdraw from PPF before maturity?
A: Partial withdrawals are allowed from the 7th financial year, subject to certain conditions.