What is an EPF calculator?
An EPF calculator is an online tool that helps you estimate your total retirement savings accumulated through the Employee Provident Fund (EPF). It calculates the combined sum of your and your employer's contributions, along with the interest earned over time. To use it, you'll need to provide the following details:
- Monthly PF contribution: The amount you contribute to your EPF each month, quarter, half-year, or year.
- PF interest rate: The current interest rate offered on EPF deposits.
- Duration of contribution: The total number of years you've been contributing to EPF.
- Frequency of EPF contribution: Whether you contribute monthly, quarterly, half-yearly, or yearly.
How does an EPF calculator work?
Example to help you understand how the EPF calculator works:
If an employee has a basic salary of Rs. 15,000 and contributes 12% of their salary towards the EPF, which is Rs. 1,800. The employer contributes 3.67% of the employee’s salary towards the EPF, which is Rs. 550 and 8.33% towards the Employee Pension Scheme (EPS), which is Rs. 1,250. The total contribution by the employer and employee towards the EPF account of the employee is Rs. 2,350.
The interest rate for FY2024-25 is 8.25%. The interest rate applicable for each month will be 0.6875% (8.25%/12).
Assuming the employee joined the company in April 2020, the total EPF contribution for April will be Rs. 2,350. The EPF scheme will not pay any interest for April.
For the month of May, the total EPF contribution is Rs. 4,700 (Rs. 2,350 + Rs. 2,350). The employee receives an interest of Rs. 32.31(Rs. 4700*0.6875%).
The calculation will go on till the employee retires (age of 60). The EPF calculator will show the total accumulated maturity amount and total interest earned by the employee.
How can an EPF calculator help you?
An EPF calculator is a useful tool that helps you figure out the total maturity amount you will receive from your EPF contributions. This information is crucial for planning your retirement. If the calculated amount doesn't seem sufficient for your retirement needs, you might consider investing in other investment options to build your retirement years.
How to use the Bajaj Finance PF Calculator?
Using the Bajaj Finance PF calculator is quite simple, just follow the below mentioned steps:
- Enter your “Monthly Salary (Basic + DA) in rupees”.
- Enter “Your Contribution to EPF (in %)”
- Enter “Your Current Age (in years)”
- Enter “Expected Annual Increase in Salary (in %)”
After entering this information, the EPFpension calculator will show you how much your accumulated maturity amount will be by the time you retire, and the total interest you will earn on your PF investment amount.
Benefits of using the Bajaj Finance PF Calculator
- The Bajaj Finance PF Calculator assists with retirement planning by projecting the accumulated amount in your EPF fund at retirement.
- It can help you decide whether you need to increase your PF contribution if the corpus accumulated at retirement is insufficient to meet your requirements.
- The calculator is user-friendly and provides the EPF corpus estimate upon retirement quickly and easily.
- It is also helpful in projecting the EPF corpus at different retirement periods, which aids in preparing for early retirement.
