EPF Calculator: Know what Rs 1,800, Rs 3,600 and Rs 5,400 monthly investment in EPF can give you on retirement
EPF Retirement Corpus Calculation: Employees' Provident Fund (EPF) is a retirement scheme where one can contribute monthly and build a corpus. One receives 8.25 per cent compound interest on their investments. If they start investing early, they can build a large corpus in the long run.
EPF Retirement Corpus Calculator: What are retirement planning investment options for private sector employees. There options such as Employees' Provident Fund (EPF) and National Pension System (NPS), where they contribute monthly. If they start contributing early in their career, even small monthly contributions can helps them build a sizeable corpus. Many private sector employees choose EPF as a retirement scheme since it gives them a fixed return. Its a non-market-linked investment scheme that provides compound interest of 8.25 per cent.
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What is EPF?
The other advantage is the employer also contribute equal amount to the employee's contribution. So, in the long, even if invest a small amount, they can build a large corpus. The employer also contributes to the employee's pension scheme (EPS), which helps individuals get a monthly income post retirement. The minimum investment in EPF is Rs 1,800, which is for a personal earning a basic salary of Rs 15,000, and maximum contribution is 12 per cent of the employee's basic pay and dearness allowance (DA). If one wants to contribute more than 12 per cent threshold, they can do it under Voluntary Prvident Fund (VPF).
What is EPF?
The distinguished feature of EPF is that the investment up to Rs 1.50 lakh in a financial year provides tax benefits under Section 80C of the Income Tax Act. At the same time, interest earned, and the maturity amount are tax-free. In this write-up, we will tell you how much will be your estimated maturity amount if you invest Rs 1,800, Rs 3,600, and Rs 5,400 monthly.
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EPF investment conditions
For our calculation, we will take the example of a person who is starting EPF contribution at the age of 25 and will continue it till the age of 60. Though EPF interest rate is subject to change, we are calculating on the basis of the current rate of 8.25 per cent.
EPF Interest Calculator: What will be total investment on Rs 1,800 monthly contribution?
At 1,800 per month investment, the investment in 35 years will be Rs 7,56,000.
EPF Interest Calculator: What will be estimated corpus on Rs 1,800 monthly contribution?
The estimated corpus with Rs 1,800 monthly contribution will be Rs 42,60,226.73.
EPF Interest Calculator: What will be total investment on Rs 3,600 monthly contribution?
At 3,600 per month investment, the investment in 35 years will be Rs 15,12,000.
EPF Interest Calculator: What will be estimated corpus on Rs 3,600 monthly contribution?
The estimated corpus with Rs 3,600 monthly contribution will be Rs 85,20,453.46.
EPF Interest Calculator: What will be total investment on Rs 5,400 monthly contribution?
At 5,400 per month investment, the investment in 35 years will be Rs 22,68,000.
EPF Interest Calculator: What will be estimated corpus on Rs 5,400 monthly contribution?
The estimated corpus with Rs 5,400 monthly contribution will be Rs 1,27,80,680.18.
Disclaimer
(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an advisor for investment planning.)