Key takeaways:

A Provident Fund (PF) is a scheme of a savings fund where employees and employers save money every month.

Provident Fund (PF) is a government introduced retirement savings scheme for employees.

The EPF calculator helps you to estimate the total amount of PF that will be in your credit at the time of retirement.

Bonus tip:

The government of India is considering increasing the salary limit of ₹15000 to ₹25000 . This move can bring a large number of employees under the social security net of Provident Fund.

Provident Fund (PF) is a government backed scheme under which contribution is made by both the employee and the employer every month. It is a longer term savings scheme which is meant for the working class in India. PF acts like a safety net for your future when the regular income stops. Therefore, it is important to know the total amount that you will get in future and for that you can use the EPF calculator.

Think of the EPF calculator as a future financial time machine. Using this time machine, you can estimate the total PF amount that will be in your credit at the time of retirement.

For example, I work in an IT company and my monthly salary is ₹20,000. I used the EPF calculator to estimate the total PF amount that I will have in the next 25 years.

EPF Parameters	Details
Monthly salary	₹20,000
Total monthly EPF contribution	₹3134
Interest rate	8.15%
Time period of contribution	25 years

The total PF amount that I will get after 25 years is ₹30,49,861 that will help me to plan my retirement more effectively.

What is an Employee Provident Fund?

A Provident Fund (PF) is a scheme of a savings fund where employees and employers save money every month. It helps workers save for retirement. You can use the EPF calculator to plan your retirement.

Both employer and employee contribute 12% but only 3.67% of it goes into the employee’s EPF account and rest to the EPS. For example, if you earn ₹25,000 per month, ₹3000 (12%) will be deducted from your salary. The employer will also contribute ₹3,000 but only ₹1,750.50 will go to your PF account.

What is Employee Provident Fund (EPF) Calculator

The EPF calculator is an online tool that helps you to calculate the total amount of PF that you have to your credit at the time of retirement or in future when you plan to withdraw the PF amount.

To know the total PF amount, you need to enter a few basic details like:

The rate of interest
Your current age
You retirement age/ time period for which you want to calculate the PF amount
Your basic salary
Employee and employer contribution
Expected annual increase in the salary

By entering the above details, you can easily calculate the PF amount instantly and accurately. The EPF calculator works like an EPF investment calculator as it helps you to know the amount which you invested for your retirement.

For example, Priya earns ₹40,000 per month and she wants to calculate her PF amount for planning her retirement.

EPF Parameters	Details
Monthly salary	₹40,000
Total monthly EPF contribution	₹6,268
Interest rate	8.15%
Time period of contribution	20 years

The total PF amount that she will get after 20 years is ₹37,87,302. The total interest earned on her PF is ₹22,82,982.

What is Voluntary Provident Fund (VPF) Calculator

A VPF calculator is an online financial tool. It helps you to calculate your retirement amount which includes both the amount saved by you and the interest earned on the saved amount.

You need to enter a few basic details to know the results like VPF investments made, VPF interest rate, duration and the frequency for which the investment is made. Once these details are entered, you will get the maturity amount of your Voluntary Provident Fund account.

The VPF payments made by the employee are free from the income tax rules under section 10(12) of the Income Tax Act, subject to the threshold limit of ₹2,50,000 in contribution. The current fixed interest rate on VPF is 8.1% by the Employees Provident Fund Organisation (EPFO).

Benefits of using the EPF calculator

Below table lists some of the benefits of using the EPF calculator:

Benefits	Details
Transparency	You can easily see how each and every contribution adds to your PF amount
Time saving tool	It saves your time by avoiding complex manual calculations.
User friendly tool	By entering basic details like monthly salary, employee contribution, employer contribution, duration, you can get the results.
Financial motivation	Seeing your PF amount for retirement will encourage you to work more and save more.
Future planning	The total amount will help you to make a better decision for your retirement and planning future requirements.

The EPF calculator is beneficial to use and you can find multiple calculators online.

Conclusion:

An EPF Calculator is a quick and easy way without any hassle to see how your retirement savings can grow by your monthly contribution. With a clear overview of your future PF amount , you can plan a better retirement, decide if a Voluntary Provident Fund contribution is good as per your income and future choices or simply find peace of mind about your retirement savings.

FAQs:

Is the EPF calculator free to use?

Yes, the EPF calculator is free to use. It is made to help the employees to know their total PF amount for retirement planning.

How accurate is the EPF calculator?

The EPF calculator is accurate as it avoids any manual errors. You are required to provide the correct details in the calculator.

Do online EPF calculators take retirement age into account?

Yes, most of the online EPF calculators take your retirement age into account for accuracy.

How does provident fund contribution reduce the income tax?

Under section 80c of Income Tax Act, the amount you contribute every month for the PF is eligible for deduction. Additionally, the interest earned on the PF amount is tax free.

How to raise a grievance if interest is not calculated for my PF account?

Go to the EPFO grievance portal and choose the type of grievance along with the required documents.