EPF Calculator - Employee Provident Fund Calculator Online | 5paisa (2024)

• EPF Corpus (at retirement)
• ₹1,48,80,000

+91

Login Now

What is EPF?

The Employees' Provident Fund (EPF) is a retirement savings plan where both employees and employers contribute to help employees save for retirement. Managed by the Employee’s Provident Funds Organisation (EPFO), it was set up under the Employees' Provident Funds Act of 1952. Companies with at least 20 employees must offer EPF accounts, although some smaller firms do as well. If you earn less than Rs. 15,000 a month, your EPF account is mandatory, but many companies provide this benefit to all employees.

Every month, both you and your employer contribute 12% of your basic salary and dearness allowance to the EPF. Of this 12%, 8.33% goes to the Employee Pension Scheme and 3.67% goes to the EPF. When you retire, you can withdraw your EPF savings in a lump sum. The government ensures the safety of these funds and sets the interest rate annually, making it a popular choice for retirement savings.

What is an EPF calculator?

An EPF calculator online tool that helps you estimate how much money you'll have in your Employees' Provident Fund (EPF) when you retire. By entering details like your current age, basic salary, monthly EPF contributions, and expected retirement age, the Employee Provident Fund calculator shows you the total amount you'll have saved up in your EPF account. If you know your current EPF balance, you can add that too. This way, you can see how your savings, including both your and your employer's contributions plus the interest earned, will grow over time.

How does an EPF calculator work?

5paisa's EPF Calculator online is simple to use. Just follow these steps:

1. Enter your basic monthly salary.
2. Enter your current age.
3. Enter the age you plan to retire. The maximum retirement age for private sector employees is 65 years.
4. Add your current EPF balance, if you know it, and the percentage contributions from both you and your employer.
5. Enter 12% of your and your employer's EPF contributions.
6. Enter the current EPF interest rate and click Calculate.

EPF calculator will show you the total maturity amount. You can also factor in expected salary increases to see how much your EPF might grow by the time you retire.

How to use 5 Paisa's EPF calculator?

The Employee Provident Fund (EPF) calculator aids in calculating your corpus when you retire. Use the EPF calculator on 5 Paisa to calculate your employer's contribution to your EPF account and the current balance of your EPF account or pension fund account. In addition, factor in a growth rate for your salary that you anticipate until retirement, enabling you to increase your EPF contribution each year. Every year, the EPF interest rate is revised, and you can adjust it to fit your financial goals.

Accessing and using our EPF calculator is very simple. Enter the values, and the output will appear shortly.

Step 1: Submit your age and basic salary information.

Step 2: The employer's contribution (EPS+EPF), total interest earned, and total maturity amount will all be reflected in the results as soon as you input the values.

Formula to calculate EPF amount with example

The EPF calculator is a simulation that shows the total amount in your EPF account at retirement. Enter your basic monthly salary + the dearness allowance, your current age, your contribution to the EPF, and your age of retirement age in the formula box.

Components of the EPF formula:

1. Employee Contribution
This is your contribution to your EPF retirement account. The EPF receives the 12% employee contribution directly.

2. Employer Contribution
The employer's contribution, however, is split between the EPS and the EPF. The EDLIS, EPF admin fees, and EDLIS admin fees are three additional expenses the employer is also responsible for paying. Employer contributions are split into: 3.67% into EPF, 8.33% into EPS, 0.5% into EDLIS, 0.85% for EPF Administrative Charges, and 0.01% for EDLIS Administrative Charges.

3. Growth Rate in EPF
Enter the percentage you anticipate your salary increasing. This will consequently increase your EPF contribution.

4. Rate of Interest
You can enter either the current EPF interest rate or the rate at which you anticipate your EPF will generate returns.

5. Current Pension Fund Balance
Your EPF Passbook, a component of the Employees' Pension Scheme (EPS), contains information about your pension fund balance.

Here's an example:

• Employees basic salary + dearness allowance = Rs 15,000
• Employees contribution towards the EPF = 12% * 15,000 = Rs 1,800
• Employers contribution towards the EPF = 3.67% * 15,000 = Rs 550
• Employers contribution towards EPS = 8.33% * 14,000 = Rs 1,249.

The total contributions made by the employer and employee to the employee's EPF account are Rs. 1,800 + Rs. 550, or Rs. 2,350.

The interest rate for FY 2022-23 is 8.1%. Thus, monthly interest will be - 8.1%/12 = 0.675%

Considering the worker started with Company E in June 2022. For June, there will be a total EPF contribution of Rs 2,350.

July's total EPF contribution was Rs 4,700 (Rs 2,350 plus Rs 2,350). The interest of Rs. 4,700 multiplied by 0.675% or Rs. 31.75 is paid to the employee.

As in July, the rest of the months will add up to the total EPF fund.

Benefits of using the 5 paisa's EPF calculator

• The EPF Calculator online helps you see how much money you'll have in your EPF fund when you retire. This gives you a clear picture of your retirement savings, making it easier to plan other investments.

• If you think your retirement savings won't be enough, you can use the EPF calculator to figure out how much more you need to contribute to build a bigger fund. It's simple to use and shows your estimated retirement savings in seconds.

• Employee provident fund calculator is a helpful tool for retirement planning. If you want to retire early, you can adjust your contributions and see how your savings will grow over different retirement timelines. This way, you can better prepare financially for an early retirement.

Formula to determine EPF amount

To comply with government guidelines, every employee's provident fund (EPF) consists of two types of contributions one from the employee and one from the employer. Each month, employees contribute a percentage of their basic salary to their EPF account. Similarly, employers also make a contribution to the EPF on behalf of their employees. Both contributions are crucial as they help build the employee's savings over time.

1. Employee Contribution:

What It Is: Each month, an employee contributes 12% of their basic salary to the EPF.
Example: If the basic salary is Rs 20,000, the monthly contribution is Rs 2,400 (12% of Rs 20,000).

2. Employer Contribution:

What It Is: The employer contributes a total of 3.67% of the basic salary to the EPF.
Example: For a salary of Rs 20,000, the employer’s contribution is Rs 734 (3.67% of Rs 20,000).

3. Total Monthly Contribution:

Sum of Both Contributions: Rs 2,400 (employee) + Rs 734 (employer) = Rs 3,134.

4. Interest Calculation:

Current Interest Rate: For the 2023-24 fiscal year, the interest rate is 8.25%.
Monthly Interest Rate: 8.25% annual rate divided by 12 months = 0.6875% per month.

Example for Interest Calculation:

Month 1: Contribution Rs 3,134
Month 2: Total Balance Rs 6,268 (Rs 3,134 from each month)
Interest Earned for Month 2: 0.6875% of Rs 6,268 = Rs 43.07.

The interest for the second month on your EPF is calculated based on the total balance at that time, and this amount will grow as additional contributions are made each month throughout the financial year.

How Can an EPF Calculator Help You?

An EPF calculator helps you figure out how much you'll save through your EPF contributions, so you can plan your retirement better. If the amount seems insufficient, you might consider other investment options to build a larger retirement fund. You don’t need to do the math yourself each time, as our online PF calculator handles it for you. You can adjust interest rates, if interest rates or contribution ratios change. For example, if the interest rate on EPF is 8.25% and changes during the year, you can easily calculate your retirement amount when you log in Employee provident fund calculator.

+91