EPF Calculator: Calculate EPF Returns Online

How Does an EPF Calculator Work?

What Is the Formula for EPF Calculation?

To understand the basics of EPF calculation and the contributions made by the employee and the employer, one must refer to the following section. 

Employee’s contribution towards EPF = 12% of (Basic pay + DA)

Employer’s contribution towards EPF = 12% of (Basic pay + DA)

Please note that the 12% of employer’s contribution is divided into two parts, 8.33% towards employee’s pension scheme (EPS) and 3.67% towards Provident fund.

To simplify the above formula, let’s understand the meaning of each term from the given table:

Terms

Meaning

Basic Pay

The standard rate of pay before additional payments

DA

Dearness Allowance is an amount added to the basic salary to calculate the take-home amount.

Next, we focus on how interest is calculated on both the employee and employers’ contributions at the end of a year.

The interest rate for FY 2020-2021 is 8.5% p.a.

Therefore, the applicable interest rate per month is 8.5%/12= 0.7083%.

This calculation is performed on the opening balance of each month. As the first month's opening balance is zero, interest earned amounts to zero as well. Interest for the second month is computed on the closing balance of the first month, which is also the opening balance of the first month. This calculation is done similarly for later months.

Individuals can use an EPF interest calculator to know the interest amount earned every month and year.

However, the total interest of the first year is added to the sum of both employers’ and employees’ contributions, which is the opening balance for the second year.

Similar to the EPF calculator, individuals can calculate the accumulated amount using an EPF calculator Excel sheet. In addition, this Excel-based EPF calculator helps individuals understand the EPF corpus better and enhance investment decisions.

Those willing to know how EPF calculator works, must understand the example and calculation process mentioned below.

Different Scenarios of EPF Calculation

Inputs for calculation of EPF

Inputs

Values (May be Subjected to Change)

Basic salary + DA

₹12,000

Employee’s contribution towards EPF

12% of ₹12,000

Employer’s contribution towards Employee Pension Scheme

33% of ₹12,000

Employer’s contribution towards EPF

3.67% of ₹12,000

Outputs generated from the above values are mentioned below.

Outputs

Values for the Above Inputs

Employee’s contribution towards EPF

₹1440/month

Employer’s contribution towards EPS account

₹1000/month rounded off

Employer’s contribution towards EPF account

₹440/month rounded off

Inputs for calculation of EPF

Inputs

Values (May be Subjected to Change)

Basic salary + DA

₹20,000

Employee’s contribution towards EPF

12% of ₹20,000

Employer’s contribution towards Employee Pension Scheme

8.33% of ₹15,000

Employer’s contribution towards EPF

B - C

Outputs generated from the above values are mentioned below.

Outputs

Values for the Above Inputs

Employee’s contribution towards EPF

₹2400/month

Employer’s contribution towards EPS account

₹1250/month rounded off

Employer’s contribution towards EPF account

₹ (2400-1250) = ₹1150/month rounded off

Steps to Calculate the EPF Amount at Retirement

Uses of EPF Calculator

Advantages of EPF Calculator

Frequently Asked Questions