EPF calculator or Employees Provident Fund calculator is a very useful calculator because by using this calculator you can calculate as to how much interest will be there on your provident fund savings. Moreover it is simple to use calculator and hence you will not find any difficulty to use this online EPF calculator.
Use of EPF calculator
There are many uses of EPF calculator and it is here that you know how much money will you get at the time of retirement. Now calculating Employees Provident Fund amount is simple as you do not enter a lot of details.
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But before you continue to know answer of PF calculator you understand what is EPF and how to calculate EPF interest rate.
What is EPF?
EPF full form is Employees Provident Fund and it is a scheme which Government of India started. Moreover according to this scheme all employees of private or government organisations have to contribute to EPF account.
It is so because in this way you can save some money for your retirement as well. In simple words it will be a social security for you after you retire.
There is one more important thing that you should remember and it is that EPF scheme helps you even before you retire because Government of India along with Employees Provident Fund Organisation stated that from now on every EPF member can withdraw some provident fund amount to either buy a house or plot or for education of their children.
Hence saving some money in provident fund will be useful to all the EPF subscribers in future. If you have some doubts about how much EPF will you collect by the end of your retirement then you continue reading this article.
You also will find one calculator that helps you to calculate EPF amount after you retire. However for this calculator you enter correct values only so that you get right answer.
Know how to use auto loan EMI calculator online.
How to use EPF calculator
- To use EPF calculator you first enter your age
- Then enter basic monthly salary
- Mention your EPF contribution to EPF fund in percentage
- You also specify EPF contribution of employer in percentage
- In next field you select age of retirement and annual increase in salary (average)
- If you have any EPF balance at present then you should specify that as well
- Finally you enter rate of interest for EPF fund in percentage and then click on ‘calculate’ tab
When you click on ‘calculate’ you find answers to your question easily. Therefore it is simple technique that you use to know EPF amount and EPF interest rate.
Formula to calculate EPF balance
There is one formula using which you calculate EPF amount and you remember that EPF contribution from employer and employee is 12 % (this amount is for both employer and employee). Besides it is a rule for all organizations to follow Employees Provident Fund and Miscellaneous Provisions Act rules.
EPF calculator formula
\(Total\quad EPF\quad balance\quad at\quad end\quad of\quad year=\)
\(Balance \quad at\quad end \quad of\quad 12 months \quad(employee \quad contribution+ employer\quad contribution)+\)
\(Sum\quad of\quad interest\quad earned\quad every\quad month\quad of\quad year\)
Thus it is very easy to calculate EPF now while on other hand you can calculate RD also.