Kotak PPF Calculator
The Kotak PPF calculator is a tool that helps investors compute PPF returns upon maturity. Investors use the tool to calculate the probable earnings on a PPF account by offering specific details, such as the investment duration and yearly investment fund. The calculator then estimates the precise wealth gained depending on the input given by the investor. It will calculate the interest you earn on PPF investment within seconds.
Public Provident Fund, known as PPF, is a perfect financial tool for investors with low-risk appetite. Since the government backs the scheme, the returns are guaranteed and also, help investors save taxes. Investors can park their money in a PPF account to earn better interest on their savings. Since there are zero risks, PPF makes it a worthy investment option for every investor.
How the Kotak PPF Calculator Works:
The Kotak PPF calculator works on the below formula to calculate the maturity value of your investment in PPF:
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 looking to invest ₹500, which is the minimum amount one needs to invest in PPF every year. You are planning to stay invested for 15 years. The interest rate for PPF is 7.1%. Here's how you can calculate your maturity value using the above formula.
M = 500 x [(1 + 0.071)^15 - 1)] / 0.071 x (1 + 0.071)
M = 898.98 / 0.071 x (1.071)
M = ₹13,548 (approximately)
So, if you invest ₹500 every year for 15 years in PPF, you will earn over ₹13,500.
How to Use the Kotak PPF Calculator:
Below are the steps to use the Kotak PPF calculator. It is a straightforward and simple process.
Step 1: The first step is to enter the amount you wish to invest every year.
Step 2: The next step is to enter the amount of years you wish to continue your PPF. It is important to note that the lock-in period of PPF is 15 years and the current interest rate of the instrument is 7.1%. Once the details are entered, the calculator will compute the values and tell you how much maturity value you will be able to earn at the end of your investment tenure.
Example:
Ms. Emmy plans to invest ₹1000 in PPF every year and continue to stay invested for 30 years. She wishes to know how much maturity she will be able to earn from her investment. When we put the above values into the calculator formula, here's what we get:
M = 1,000 x [(1 + 0.071)^30 - 1) / 0.071 x (1 + 0.071)
M = 6,828.6 / 0.071 x (1.071)
M = ₹1,02,910 (approximately).
So, if Ms. Emmy invests ₹1000 for 30 years, she would have built a corpus of over ₹1 lakh at the end of her investment tenure.
Benefits of Using the Kotak PPF Calculator:
The Kotak PPF calculator comes with a plethora of benefits. We have mentioned a few of the advantages below.
- The PPF calculator is a user-friendly tool that helps you figure out specific values by entering the correct numbers in the required fields. Any type of investor, be it a novice or a seasoned professional, can use the tool easily and find the values of interest earned, total investment amount, and maturity amount.
- The calculator helps you manage your finances better by letting you know how much returns you will be able to earn from your investment.
- The calculator is quick and can give you results within seconds. It saves you a lot of time, and you can get error-free results every time you use the calculator.