BOB PPF Calculator
The BOB PPF calculator helps investors estimate the returns they would earn from their PPF investments. By entering data inputs like the yearly investment amount and investment horizon, you can figure out the potential returns of PPF. The calculator also helps you determine the interest earned from PPF investments.
Public Provident Fund (PPF):
PPF is a well-known government savings scheme, and the minimum amount starts from ₹500, making it affordable for everyone. The scheme also offers tax benefits. The Government of India revised the PPF interest rate, and the current rate offered to PPF investors is 7.1%. The lock-in period of PPF is 15 years, making it a perfect long-term investment option for investors who want to grow their wealth and also save taxes.
How the BOB PPF Calculator Works:
The BOB PPF Calculator works based on the below simple formula:
Where:
M is the maturity amount
P is the annual contribution
i is the annual rate of interest
n is the number of years
Example:
You are planning to invest ₹90,000 every year and want to stay invested for 15 years in PPF. The interest rate for PPF is 7.1%. By putting the values in the formula, here's how much corpus you will be able to build in 15 years.
M = 90,000 [(1 + 0.071^15) - 1) / 0.071 x (1 + 0.071)
M = 1,61,816.4 / 0.071 x (1.07)
M = ₹24,38,641 (approximately)
If you invest ₹90,000 every year for 15 years, your PPF will give you a maturity value of over ₹24 lakhs.
How to Use the BOB PPF Calculator:
The BOB PPF calculator requires the below inputs to perform the calculations.
Step 1: The amount you wish to invest in the PPF account in a year.
Step 2: The number of years you wish to stay invested in your PPF. The current PPF interest rate is 7.1% per annum.
Example:
Ms. Dimple plans to invest ₹1,20,000 every year in PPF and wants to continue her investment for 25 years. The current PPF interest rate is 7.1% per annum. Now, let's calculate the maturity value of Dimple's PPF investment.
M = 1,20,000 [(1 + 0.071^25) - 1)] / 0.071 x (1 + 0.071)
M = 5,46,680.4 / 0.071 x (1.071)
M = ₹82,46,404 (approximately)
So, if Ms. Dimple invests ₹1,20,000 for 25 years, she would have built a corpus of nearly ₹82.5 lakhs at the end of her investment tenure.
Benefits of Using the BOB PPF Calculator:
There are a plethora of benefits to using the BOB PPF calculator. Here are a few of them.
- The PPF calculator allows you to accurately plan your finances by calculating the potential returns and maturity amount of your PPF investment.
- The calculator can save a lot of time and effort by quickly calculating your PPF returns online. You don't have to do any manual calculations or memorize any complex formula.
- The calculator helps you compare different investment scenarios by adjusting the investment amount and duration. This can allow you to find the right investment amount that is needed to achieve your financial goals.
- The calculator is easily accessible and can be used by anyone for free of cost.