Photo by D-KavUPDATE (Jan 2012): Now that PPF Interest rate has been revised since 1st Dec’ 2011 (increased from 8.00% to 8.60%), the PPF Interest Calculator also need to factor-in the revised rates. But, what if the PPF interest rate is revised again?
Instead of devising the new PPF Calculator, I’ve incorporated the PPF Interest Rate as another variable in this excel based PPF Interest Calculator; now you will be in a position to change it yourself based upon the applicable rate of interest on PPF Accounts. Besides, you will also be able to figure out the exact amount of additional benefit on account of 0.6 per cent increase in the PPF interest rate by calculating for both 8 per cent as well as 8.6 per cent interest rate.
Simultaneously, the maximum PPF deposit limit has also been raised from Rs 70,000 to Rs one lakh during a financial year. The revised version of the PPF Calculator also takes into account this new feature.
I’ve designed a PPF Interest Calculator in excel sheet (which shows PPF returns and maturity value after different time periods) to help you plan your PPF investments. Similar to the ‘Income Tax Calculator’ designed earlier, which is, as of now, the only online tax Calculator to provide you with the accurate tax liability figure (by including all the possible permutations and combination of different kinds of taxable income, special tax rates applicable on certain income and the various conditions and restrictions imposed on section 80 deductions), this PPF Returns Calculator is also only one of its kind. You would find many online PPF Returns Calculators available on the net but none of them is as good as this one. Try comparing it with other PPF Interest Calculators.
Instead of devising the new PPF Calculator, I’ve incorporated the PPF Interest Rate as another variable in this excel based PPF Interest Calculator; now you will be in a position to change it yourself based upon the applicable rate of interest on PPF Accounts. Besides, you will also be able to figure out the exact amount of additional benefit on account of 0.6 per cent increase in the PPF interest rate by calculating for both 8 per cent as well as 8.6 per cent interest rate.
Simultaneously, the maximum PPF deposit limit has also been raised from Rs 70,000 to Rs one lakh during a financial year. The revised version of the PPF Calculator also takes into account this new feature.
I’ve designed a PPF Interest Calculator in excel sheet (which shows PPF returns and maturity value after different time periods) to help you plan your PPF investments. Similar to the ‘Income Tax Calculator’ designed earlier, which is, as of now, the only online tax Calculator to provide you with the accurate tax liability figure (by including all the possible permutations and combination of different kinds of taxable income, special tax rates applicable on certain income and the various conditions and restrictions imposed on section 80 deductions), this PPF Returns Calculator is also only one of its kind. You would find many online PPF Returns Calculators available on the net but none of them is as good as this one. Try comparing it with other PPF Interest Calculators.
Actually, the PPF (Public Provident Fund) interest calculation is a bit complicated due to various factors such as interest calculated on monthly basis but compounded on annual basis, no interest paid for a particular month if the amount is deposited after 5th of the month, interest always credited to the PPF account at the end of the financial year (i.e., 31st March), varying minimum duration of the PPF (ranging from 15 years 1 day to 16 years) depending upon the first month of the deposit.
Before using the PPF Returns Calculator to know the maturity value and the interest earnings and to plan your future investments in the PPF account, first you need to understand how the PPF account actually works. Please see ‘10 Tips about PPF Investing’.
To simplify the PPF returns Calculation, I had to make certain assumptions which are as follows:
PPF Interest Calculator: Assumptions1. Deposit by 5th of the month: It is assumed that every deposit made by you in your PPF account is on or before 5th of a month.
PPF Interest Calculator: Assumptions1. Deposit by 5th of the month: It is assumed that every deposit made by you in your PPF account is on or before 5th of a month.
2. Recurring Deposits: The second assumption is that you’re making a recurring deposit in your PPF account either annually or monthly. Recurring annual deposit means that the same amount is deposited in the PPF account every year (and in the same month). Similarly, recurring monthly deposit means that every month you’re depositing same amount in your PPF account.
3. Applicable for PPF accounts opened on or after April 2003: PPF Calculator is based on interest rate of 8% [Update: also 8.60%] per annum (p.a.). In other words, use the Calculator to calculate interest earned on your PPF account if the account is opened on or after 1st April 2003. If you started investing in PPF even before the month of April 2003, then this PPF Calculator is not applicable.
Instructions for using the PPF Calculator:
1. The value of N (number of years) can be 16, 21, 26, 31 or 36 only.
It means that investment in PPF account is for a minimum lock-in period of 16 year. If you extend it for another 5 years then either you keep on investing same amount of deposit for the next 5 years (put n=21) or the extension is without any further deposits (then put n=16). However, the Calculator will show you the PPF returns and the maturity value at the end of 21 years in both the cases (i.e., n=16 as well as n=21) in addition to returns and the maturity value at the end of 16 years.
1. The value of N (number of years) can be 16, 21, 26, 31 or 36 only.
It means that investment in PPF account is for a minimum lock-in period of 16 year. If you extend it for another 5 years then either you keep on investing same amount of deposit for the next 5 years (put n=21) or the extension is without any further deposits (then put n=16). However, the Calculator will show you the PPF returns and the maturity value at the end of 21 years in both the cases (i.e., n=16 as well as n=21) in addition to returns and the maturity value at the end of 16 years.
The same process is followed for every 5 year extension of PPF account. 1. PPF vs. NSC: How to Decide?
So understand that n is the number of years for which you make investments in the PPF account. For example, if you make regular investment for 26 years (monthly/annually) put n=26 and you’ll know the interest earnings and the maturity value at the end of 16, 21, 26, 31 and 36 years.
2. In the 'month of deposit' ("M")column put 1 for January, 2 for the month of February and so on. The maximum value can be 12 which represents the month of December. Also understand that in case of ‘Monthly PPF Calculator’, month of deposit means only the initial or first month of deposit.
3. The value of “A”, the amount of recurring deposit can’t exceed Rs 5,833 Rs 8,333 in case of monthly deposit and Rs 70,000 Rs. 1,00,000 in case of annual deposits.
4. There are two separate PPF Interest Calculators combined into one excel sheet. First one is applicable for monthly recurring deposits in PPF account and second one is applicable for annual recurring deposits. Use the one applicable to you. You can also use both the Calculators to compare monthly deposits with annual deposits.
After making so many assumptions, doesn’t the PPF returns calculator lose its relevance? Not at all! As already stated, the basic idea behind the Calculator is to help you get a broader view of PPF returns and to make the PPF investment planning easier for you.
Anyway, the actual PPF interest calculations can be seen from your PPF account statement or the passbook.
So, here’s a PPF Calculator (Revised Version) that actually works!
So, here’s a PPF Calculator (Revised Version) that actually works!
If you come across any bug in the PPF Interest Calculator or need some clarification regarding the PPF Calculator, just write it down in the comment box.
Anyhow, your feedback and suggestions is really important for me to understand what’s working and what’s not.
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