Axis Bank PPF calculator

What is Axis Bank PPF Calculator?

The PPF calculator in Axis Bank is an online tool that accurately estimates how much an investor will receive at the end of a 15-year lock-in period of PPF investment. The Axis Bank PPF calculator takes into account parameters such as investment frequency, investment amount and the current interest rate of the PPF and calculates the final amount an investor receives at the end of the PPF tenure.

How does Axis Bank PPF Calculator Work?

The Axis Bank PPF calculator uses the mathematical formula to calculate the returns on a PPF investment. The PPF calculator Axis Bank considers the invested amount, tenure, and prevailing interest rate to display an instant and accurate return projection. 

How to Use an Axis Bank PPF Calculator?

You can follow the easy steps mentioned below to use the Axis Bank PPF calculator and calculate expected returns from post office PPF investments accurately:

• Select the frequency of investment: The frequency of your investment will influence your maturity value. Ideally, select the ‘Monthly’ option if you are salaried for more convenient investment and accurate results.
• Enter the monthly PPF investment: It is the amount you wish to invest in the PPF account. You could input a monthly, quarterly, semi-annual, or annual amount. Also, ensure that your investment amount is not more than Rs 12,500 per month or Rs 1.5 lakh a year.
• Interest rate: The current interest rate for PPF investment will be auto-populated. Thus, you do not need to enter the interest rate. 
• Select the investment duration: It is the time you will continue your PPF investment. The minimum time available is 15 years, and you have the option to extend the term in batches of five years after that. The PPF calculator assumes that you will be investing the same amount till the time of maturity.
• Check the future value:  Once you enter all the above details, our calculator will automatically show the maturity amount.

What is the Axis Bank PPF Calculator Formula?

The Axis Bank PPF calculator formula is as follows: M= P [({(1+i) ^n}-1)/i]

In which,

• M=Maturity value
• P=principal amount invested in the PPF account
• i=interest rate offered on the PPF
• n=total number of years an investor stays invested in PPF

How to Calculate Expected Returns from Axis Bank PPF? 

The following formula is applied to determine the expected returns  of a PPF investment at maturity:

M= P [({(1+i) ^n}-1)/i]

Now, suppose you invest Rs 1,00,000 per year in Axis PPF for 15 years at the current interest rate of 7.1%. 

The maturity amount would be as follows:

M = 1,00,000[({(1+7.1) ^15}-1)/7.1] 

Thus, the maturity value of your Axis PPF is Rs 27,12,139.

Example of Axis Bank PPF Calculation

You can invest a maximum of up to 1.5 lakh per financial year in a post office PPF account. If you invest Rs 10,000 per month at a 7.1% interest rate, the contribution during that period will be Rs 18,00,000.

The scheme provides compound interest, which will be Rs 14,54,567 in 15 years, which is the maximum duration one can invest. After the completion of the PPF scheme, the maturity amount will stand at Rs 32,54,567.

Suppose you extend the scheme for another 5 years, your investment will rise to Rs 24,00,000. The interest received will be Rs 29,26,631, and the maturity value will be Rs 53,26,631.

Axis Bank PPF Interest Rates FY 2024-25

The interest on PPF  is calculated based on the minimum balance in an investor’s account, usually between the fifth and end of the month. The Central government revises the PPF interest rate every quarter. The PPF interest rate has remained constant for the past five years. Currently, the Axis Bank PPF interest rate is 7.1% per annum for the 1 April - 30 June 2024 quarter.

Benefits of Using an Axis Bank PPF Calculator

The Axis Bank PPF calculator is quite beneficial to those considering investing in a PPF scheme. Such benefits are mentioned below:

• The Axis Bank PPF calculator is a user-friendly and accessible interface for calculating the potential returns on PPF investments.
• PPF account in the Axis Bank calculator does not require usage for extensive manual calculations. The tool is designed to help you quickly obtain accurate forecasts of the PPF returns.
• Using the Axis Bank PPF calculator helps you to effectively plan your finances and gain insights into the growth of PPF investments.
• The PPF Axis Bank calculator helps track the total investment made in a PPF account and the returns generated over it. 

Tax Benefits of Axis Bank PPF Investments

The PPF is a government-backed investment option that provides the tax advantage of the exempt-exempt-exempt (EEE) category. The amount deposited in the PPF account in each financial year is tax-exempt. Similarly, the interest earned is tax-exempt as well as the maturity amount, including the principal amount and the interest, is tax-free. Under Section 80C of the Income-Tax Act (ITA), 1961, an investor in PPF can avail of tax exemption of up to Rs 1.5 lakh in a single financial year.