Retirement
Interest earned
The part of the maturity value that compounding adds on top of your own contributions.
The Formula
Interest = Maturity - C x n
The part of the maturity value that compounding adds on top of your own contributions.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| M | Maturity | currency | Maturity value of the account. |
| C | Yearly contribution | currency | Amount added each year. |
| n | Years | years | Number of contribution years. |
What Each Symbol Means
Mcurrency
Maturity
Maturity value of the account.
Ccurrency
Yearly contribution
Amount added each year.
nyears
Years
Number of contribution years.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate ppf maturity page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate PPF Maturity, filed under Finance. Every number the guide produces comes from substituting into this one line.