About the EPF Calculator
The Employees' Provident Fund (EPF) is the retirement savings scheme for salaried employees, run by the EPFO. Every month a part of your basic salary and dearness allowance goes into the fund, and your employer adds a share. This EPF calculator estimates the corpus you could have at retirement, based on your salary, age, contribution rates, expected salary growth and the EPF interest rate.
Employees use it to see how much their PF is likely to contribute to retirement and whether they need to save more elsewhere. It is also useful when deciding on a voluntary provident fund contribution, since you can raise your own percentage and see the effect. Employers and HR teams use similar projections when explaining the long-term value of PF to staff.
The result depends mainly on your basic salary, the years left to retirement, salary increases and the interest rate, which the EPFO declares every year. Only part of the employer's contribution goes to EPF; the rest goes to the Employees' Pension Scheme, which is not included here. If your basic pay is above the statutory wage ceiling, your employer's EPF share may differ, so edit the percentage to match your payslip.
How to use it
- 1Enter your monthly basic salary plus dearness allowance and your current EPF balance.
- 2Enter your current age and the age at which you plan to retire.
- 3Check the contribution percentages against your payslip and adjust them if needed.
- 4Enter the salary increase you expect each year and the EPF interest rate.
- 5Read the corpus at retirement and how much of it comes from interest.
How this is calculated
Monthly contribution = (basic + DA) × (employee % + employer EPF %) Interest for a month = balance at the start of that month × (annual rate ÷ 12 ÷ 100) The twelve monthly interest amounts are added to the balance once, at the end of the year, which is how EPF interest is credited. Salary rises by the chosen percentage once a year until retirement.
Frequently asked questions
How is EPF interest calculated?
Interest is worked out every month on the running balance at one-twelfth of the annual rate, but it is credited to the account only once, at the end of the financial year. The calculator follows the same method: monthly contributions, monthly interest calculation and a single yearly credit, after which the interest itself starts earning interest.
What is the current EPF interest rate?
The rate is recommended by the EPFO's Central Board of Trustees for each financial year and notified after government approval, so it changes from year to year. The calculator is pre-filled with a recently declared rate. Check the EPFO website for the latest figure and edit the field if it has changed.
Why is the employer's share shown as 3.67%?
The employer also contributes 12% of basic salary plus dearness allowance, but it is split: 8.33% of wages, up to the statutory wage ceiling, goes to the Employees' Pension Scheme and the balance goes to EPF. For salaries at or below the ceiling that balance is 3.67%. For higher salaries the EPF share is usually larger.
Can I contribute more than 12% to EPF?
Yes. Through the Voluntary Provident Fund you can contribute more than the statutory rate from your salary, and it earns the same interest as EPF. The employer is not required to match the extra amount. Enter a higher percentage in the contribution field to see its effect. Interest on very large employee contributions may be taxable.
Is the EPF amount taxable on withdrawal?
Withdrawals after five years of continuous service have generally been tax-free, while earlier withdrawals can be taxed and attract TDS. Interest on employee contributions above a specified yearly threshold is taxable. Tax rules are amended from time to time, so check the current provisions or consult a tax adviser before withdrawing.