Tally Automation
Feb 16, 2024

PPF Calculator: A Simple Tool to Plan Your Long-Term Savings

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Raja Ray

Suvit

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A Public Provident Fund (PPF) is a government-backed savings scheme that offers attractive interest rates, tax benefits, and long-term security. It is one of the most popular investment options for people who want to save for their retirement or other financial goals.

However, investing in a PPF requires careful planning and discipline, as it has a lock-in period of 15 years and a limit of Rs. 1.5 lakh per year. You also need to know how much interest and maturity value you can earn from your PPF investment, and how it can help you achieve your financial objectives.

That’s why using a PPF calculator can be very useful and convenient. A PPF calculator is an online tool that helps you estimate the growth and returns of your PPF investment over time. It also helps you compare different PPF scenarios and choose the best one for you.

What is a PPF Calculator?

A PPF calculator is an online tool that helps you determine the interest and maturity value of your PPF investment. It also helps you compare different PPF scenarios and choose the best one for you.

To use a PPF calculator, you need to enter some basic details such as the initial deposit amount, the annual deposit amount, the interest rate, and the investment duration. The calculator will then show you the interest and maturity value of your PPF investment, along with the effective annual yield (EAY) and the tax savings.

Also Read: How Upskilling Can Save you Time and Money as a CA

You can also use a PPF calculator to see how changing the input values affects the output values. For example, you can see how increasing or decreasing the deposit amount or the interest rate affects the interest and maturity value of your PPF investment. You can also see how extending or shortening the investment duration affects the EAY and the tax savings of your PPF investment.

Using a PPF calculator can help you plan your savings, set your financial goals, and track your progress. It can also help you make informed decisions and optimize your PPF investment.

How to Use a PPF Calculator?

There are many PPF calculators available on the internet, but one of the best ones is the Suvit PPF Calculator. This calculator is easy to use, accurate, and fast. It also has some unique features such as:

  • It allows you to enter any amount for monthly PPF investment between Rs. 42 and Rs. 12500.
  • It has by default an interest rate of 7.1% as the PPF interest rate.
  • It allows you to enter any duration between 15 years and 50 years as the PPF investment duration.
  • It shows you the interest and maturity value of your PPF investment for different compounding frequencies such as monthly, quarterly, half-yearly, and yearly.

To use the SUVIT PPF calculator, follow these simple steps:

  • Step 1: Visit PPF Calculator and enter the monthly PPF amount and the investment duration of your PPF investment. You can also adjust the investment frequency.
  • Step 2: On entering all the details, you will see the results. The calculator will show you the interest and maturity value of your PPF investment. You can also see the graphical representation of your interest and maturity amount.
  • Step 3: You can change the input values and see how the results change accordingly.

That’s it! You have successfully used the PPF calculator to plan your long-term savings.

Tips and Tricks to Make the Most of Your PPF Investment

Using a PPF calculator can help you plan your savings, but there are some other tips and tricks that can help you make the most of your PPF investment.

Here are some of them:

  • Choose a longer duration for higher returns. The longer you invest in a PPF, the more interest you will earn due to compounding. However, you should also consider your liquidity needs and financial goals before choosing the duration.
  • Choose a higher interest rate for higher returns. The higher the interest rate offered by the PPF scheme, the more interest you will earn. However, you should also compare the interest rates of different PPF schemes and choose the one that offers the best value for your money.
  • Choose a higher compounding frequency for higher returns. The more frequently the interest is compounded, the more interest you will earn. However, you should also check the terms and conditions of the PPF scheme and choose the one that suits your preference.
  • Choose a tax-efficient PPF scheme for higher returns. The interest earned and the maturity amount of a PPF investment are tax-free. However, you can also reduce your tax liability by choosing a PPF scheme that offers tax benefits under Section 80C of the Income Tax Act, such as the 15-year PPF scheme. You can also submit Form 15G or 15H to avoid TDS if your income is below the taxable limit.
  • Choose a flexible PPF scheme for higher convenience. Some PPF schemes offer flexibility in terms of deposit amount, withdrawal options, and extension options. These can help you manage your cash flow and liquidity better. However, you should also check the penalties and charges involved in these options and choose the one that minimizes your cost.

Take Advantage of the PPF Calculator

PPF is a great way to save money and earn interest on it. It is a safe, secure, and guaranteed investment option that can help you achieve your long-term financial goals. However, investing in a PPF requires careful planning and discipline, as it has a lock-in period of 15 years and a limit of Rs. 1.5 lakh per year.

That’s why using a PPF calculator can be very useful and convenient. A PPF calculator can help you estimate the growth and returns of your PPF investment over time. It can also help you compare different PPF scenarios and choose the best one for you.

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