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EPF Crorepati Calculator: Good News! Basic salary rs 15000, retirement age 58, will get rs 2.32 crore, know how

EPF Crorepati Calculator: Provident Fund money is very important for the employed. But, many people take it out when they leave or change jobs. Long term investment can create a huge fund.

EPF Crorepati Calculator: Provident Fund Account is a good retirement saving option for people working in the private sector. EPFO manages the accounts of crores of account holders. In these accounts, the basic salary and dearness allowance of both the employee and the employer are deposited in 24 per cent (12+12) share. Every year the government fixes interest on the amount deposited in this EPF account. At present, the interest is 8.5 per cent. This creates a larger corpus for retirement. Also, the magic of compounding interest is such that you can become a millionaire with 25 years of investment.

Interest is not available on the entire money

How is the EPF Crorepati Calculator done? Generally, account holders assume that the entire money deposited in the Provident Fund earns interest. But, it doesn’t happen. No interest is calculated on the amount that goes to the pension fund in the PF account. In the salary slip of every month, you can see how much is your basic salary and DA. 12 percent of the Basic Salary + DA of every employee goes to the EPF account. The company also contributes 12 percent of the basic salary + DA. Interest is earned on the money collected by combining both the funds. Interest is reviewed every year, but its advantage is that due to compounding interest, there is a double benefit in interest as well.

Retirement fund will be Rs 1.48 crore on 10 thousand basic

Age of EPF member –    25 years
Retirement age –          58 years
Basic salary –               Rs 10,000
Interest Rate –             8.65%
Salary increase –          10% (annually)
Total fund –                  Rs 1.48 crore

Retirement Fund at 15,000 Basic Salary

Age of EPF member –     25 years
Retirement age –            58 years
Basic Salary –                Rs 15000
Interest Rate –               8.65%
Salary increase –           10% (annual)
Total fund –                   Rs 2.32 crore

This is how interest is calculated on EPF

Interest is calculated (EPF Crorepati Calculator) on the basis of the money deposited in the PF account every month i.e. Monthly Running Balance. But, it is deposited at the end of the year. According to the rules of EPFO, if any amount is withdrawn in a year from the balance amount on the last date of the current financial year, then it is deducted 12 months interest. EPFO always takes the opening and closing balance of the account. To calculate this, the monthly running balance is added and multiplied by the rate of interest / 1200.

Loss of interest by withdrawing money

If any amount is withdrawn during the current financial year, then the EPF interest calculation is taken from the beginning of the year to the month immediately preceding the withdrawal. The year’s closing balance (PF Balance) will be its opening balance + contribution-withdrawal (if any) + interest.

Think of it as

  • Basic Salary + Dearness Allowance (DA) = ₹30,000
  • Employee Contribution EPF = 12% of ₹30,000 = ₹3,600
  • Employer Contribution EPS (subject to limit of 1,250) = ₹1,250
  • Employer Contribution EPF = (₹3,600-₹1,250) = ₹2,350
  • Total Monthly EPF Contribution = ₹3,600 + ₹2350 = ₹5,950

Contribution in PF till 1st April 2020

  • Total EPF contribution in April = ₹ 5,950
  • Interest on EPF in April = Nil (No interest in first month)
  • EPF account balance at the end of April = ₹ 5,950
  • EPF contribution in May = ₹ 5,950
  • EPF account balance at the end of May = ₹11,900
  • Monthly interest calculation (EPF Interest calculation) = 8.50%/12 = 0.007083%
  • Calculation of interest on May EPF = ₹ 11,900 * 0.007083% = ₹ 84.29

EPF interest formula

The interest rate for any financial year is notified by the government. At the end of the current financial year, the calculation of interest (EPF interest) is done. By adding the balance amount on the last date of every month of the year, dividing that amount by dividing the fixed interest rate by 1200, the interest amount is extracted.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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