# What you should keep in your mind while using the PPF calculator

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The amount deposited in the PPF account earns a reasonable interest rate with the principal amount at maturity. This calculator is used to calculate the interest rate that is provided on the principal amount. A PPF calculator saves your time and effort and calculates the interest accurately.

In this article, we will share all details about the PPF calculator used to calculate interest rates.

## What is a PPF calculator?

A PPF calculator is an online calculating tool that assists the PPF account holders in calculating the interest earned on the deposited amount. The process of calculating the PPF interest is simple and error-free.

Due to all PPF guidelines, interest rates, scheme rules, tenure, maturity, withdrawal rules, limits, etc., there is no need to use the different PPF calculators of different banks.

## Things you should keep in your mind while using the PPF calculator:

• The government decides the rate of interest every quarter
• The compound interest is calculated once in a year
• As we tell you, the compound interest is calculated annually, the investment period is extended, and the interest rates on the amount are higher.

## PPF calculation formula

• The PPF interest rate is calculated upon the lowest available balance in the PPF account.
• It is calculated between the interval of the fifth and last day of the month.
• If the amount is a deposited in the PPF account before the 5th of the month, then this deposit will earn the interest for the month.
• If the amount is invested in PPF account before and after of 5th of the month, then the account will be less affected by the PPF interest rate.
• If the PPF account holder wants to invest in the PPF scheme, then it is best for them to invest before the 5th of the month.

## Is it reasonable to use the PPF calculator?

Here we would like to tell you the facts that determine whether it is good to use the PPF calculator or not. Read the following points if you also want to know the use of the PPF calculator.

• The PPF account holder can gain an idea of how much interest they are earning on the principal amount.
• The use of the PPF calculator makes it simple and easy for the PPF account holder to determine whether they need to extend the PPF tenure or not.
• A PPF calculator calculates the schedule of the investment in advance. In this way, it makes it easy to plan to invest the annual amount on which the loan is taken and the amount withdrawn.
• It gives the estimated amount of total investment that is made during the financial year.

## Conclusion

This article delivers information on the PPF calculator. These online tools are used free of cost to calculate the interest rate that is applicable to the PPF account. Also, we highlight the facts that are in favor of using the PPF calculator.

Please re-check and compare with previous point