EPF Calculator
Calculate your Employee Provident Fund maturity amount at retirement
EPF Details
Employee contributes 12% of basic salary
Current EPF rate: 8.25% (FY 2024-25)
Results
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Est. Results
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How EPF (Employee Provident Fund) is Calculated?
EPF is a retirement savings scheme where both employee and employer contribute 12% of basic salary. The employee's 12% and employer's 3.67% go to EPF, while employer's remaining 8.33% goes to EPS. EPF uses compound interest with annual compounding.
EPF Formula/Equation
EPF Contribution = Basic Salary × 15.67%
Maturity Amount = P × (1 + r)^t
Where:
- P = Total EPF contribution (Employee 12% + Employer 3.67% = 15.67% of basic)
- r = Annual interest rate (currently 8.25% per annum)
- t = Number of years of service
Example:
Let's calculate EPF maturity for an employee with basic salary of ₹50,000 at 8.25% interest for 30 years of service.
Given: Basic Salary = ₹50,000, Interest Rate = 8.25%, Years = 30
Step 1: Calculate Monthly EPF Contribution
Employee Contribution = ₹50,000 × 12% = ₹6,000
Employer EPF Contribution = ₹50,000 × 3.67% = ₹1,835
Total Monthly EPF = ₹6,000 + ₹1,835 = ₹7,835
Step 2: Calculate Annual Contribution
Annual Contribution = ₹7,835 × 12 = ₹94,020
Step 3: Calculate Total Contribution Over 30 Years
Total Contribution = ₹94,020 × 30 = ₹28,20,600
Step 4: Calculate Maturity Amount (with compounding)
Using compound interest: A = P × [((1 + r)^n - 1) / r]
A = ₹94,020 × [((1.0825)^30 - 1) / 0.0825]
A = ₹94,020 × [(10.45 - 1) / 0.0825]
A = ₹94,020 × 114.55
A ≈ ₹1,07,75,000
Step 5: Calculate Interest Earned
Interest = ₹1,07,75,000 - ₹28,20,600 = ₹79,54,400
Result: Your EPF corpus grows to ₹1,07,75,000 after 30 years, with ₹28,20,600 in contributions earning ₹79,54,400 in tax-free interest.
Use Cases for EPF Calculator
Retirement Planning
Estimate your EPF corpus at retirement for financial planning
Job Change Analysis
Compare EPF benefits when considering job offers
Wealth Building
Track EPF growth over your career tenure
Withdrawal Planning
Plan EPF withdrawals for major expenses or emergencies
Benefits of EPF
Tax-free interest and withdrawal (after 5 years)
Employer matching contribution (free money)
Guaranteed returns with government backing
Compound interest for long-term wealth building
Loan facility available against EPF balance
Partial withdrawal allowed for specific purposes
EPF Calculator FAQs
❓How is EPF contribution calculated?
Both employee and employer contribute 12% of basic salary to EPF. However, out of employer's 12%, only 3.67% goes to EPF (the remaining 8.33% goes to EPS). So total EPF contribution is 12% (employee) + 3.67% (employer) = 15.67% of basic salary.
❓What is the current EPF interest rate?
The EPF interest rate is declared annually by the EPFO. For 2023-24, it is 8.25% per annum. The rate is subject to change each financial year. Always check the latest rate from EPFO website.
❓Is EPF withdrawal taxable?
EPF withdrawal is tax-free if you have completed 5 years of continuous service. If withdrawn before 5 years, the employer's contribution and interest on it are taxable. Employee's contribution is always tax-free.
❓Can I withdraw EPF before retirement?
Yes, partial EPF withdrawal is allowed for specific purposes like medical emergencies, home purchase, marriage, education, or after 2 months of unemployment. Full withdrawal is allowed after retirement (age 58) or if unemployed for more than 2 months.
❓Is this EPF calculator accurate?
This calculator provides estimates based on standard EPF contribution rules and compound interest calculations. Actual EPF balance may vary based on salary revisions, interest rate changes, and employer-specific policies. Check your EPF passbook for exact balance.