Canara Bank PPF Calculator
The Canara Bank PPF (Public Provident Fund) helps you figure out how much returns you would be able to make at the end of your investment tenure after investing a certain amount of money in a PPF account. The calculator saves you a lot of time by performing complicated calculations quickly and helping you plan your finances better.
The PPF is a government-backed savings plan that allows individuals to save a part of their earnings each year to build a retirement corpus. Investors who contribute to the PPF scheme will receive interest on the principal amount, as well as, tax-saving benefits.
How Does The Canara Bank PPF Calculator Work?
The PPF calculator uses the below formula to calculate your maturity amount
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 ₹25,000 every year in PPF and wish to continue investing for 25 years. Using the calculator formula, we get:
Converting the interest rate, i = 7.1/100 = 0.071
M = P [(1 + i)^n - 1) / i] x (1 + i)
M = 25,000 [(1 + 0.071)^25 - 1) / 0.071] x (1 + 0.071)
M = ₹17,18,002
If you invest ₹25,000 every year in the PPF scheme for a tenure of 25 years, you would earn a maturity amount of over ₹17 lakhs.
How Should You Use The Canara Bank PPF Calculator?
Using the PPF calculator is simple. Follow the below steps to use the calculator:
Step 1: Enter the amount you wish to invest in the PPF scheme every year.
Step 2: Specify the number of years you would like to stay invested in the PPF scheme.
It is important to note that PPF comes with a mandatory lock-in period of 15 years and the current interest rate offered by the scheme is 7.1%.
Once you have entered the details, the calculator will show you the invested amount, interest earned, and maturity amount.
Example:
Ms Sana is looking to invest ₹80,000 every year in a PPF scheme. She is planning to stay invested for 20 years. Here's how much her investments will make at the end of her investment tenure.
Converting the interest rate, i = 7.1/100 = 0.071
M = P [(1 + i)^n - 1) / i] x (1 + i)
M = 80,000 x [(1 + 0.071)^20 - 1) / 0.071] x (1 + 0.071)
M = ₹35,51,087
If Ms Sana invests ₹80,000 every year in PPF for 20 years, she would earn a corpus of over ₹35.5 lakhs at the end of her investment tenure.
Benefits Of Using The Canara Bank PPF Calculator
Below are some of the benefits of using a PPF calculator.
- The Canara Bank PPF calculator shows how much amount you would be able to accumulate at the end of your investment tenure. This can help you get an idea of whether the maturity amount will be sufficient enough to meet your long-term financial goals.
- The calculator eliminates the need to perform complicated calculations and spend long periods figuring out if investing in a PPF account is the right option for you.
- The calculator avoids the chances of errors in calculations entirely.
- You can use the calculator as many times as you wish to and calculate how much more or less amount you need to invest in your PPF account.