Magic of Compounding: EPF interest calculation; what should be your monthly contribution to create Rs 1.5 cr, Rs 2.5 cr, or Rs 3.5 cr tax-free retirement corpus

EPF Retirement Corpus Calculator: Employees' Provident Fund (EPF) is simply a status strategy wherever backstage assemblage employees get a fixed involvement rate. It is 1 of the fewer schemes wherever the invested magnitude up to Rs 1.50 lakh successful a fiscal year, the involvement earned, and the maturity magnitude are tax-free.

If 1 invests consistently successful EPF without taking galore breaks successful their job, they tin make a ample tax-free corpus.

Even from the diversification constituent of view, EPF tin signifier a almighty indebtedness information of one's concern portfolio. 

How does EPF work?

An worker with a basal wage of astatine slightest Rs 15,000 tin commencement contributing to EPF.

They tin lend a minimum of Rs 1,800 each month.

The maximum magnitude that they tin lend is 12 per cent of their basal wage and dearness allowance (DA).

If they want, they tin lend much than 12 per cent, but that would beryllium counted arsenic their Voluntary Provident Fund (VPF).

They won't get taxation benefits connected further contributions and the further corpus built due to the fact that of that.

EPF subscribers get 8.25 per cent compound interest. This concern ministry tin revise this rate. 

The peculiar happening astir EPF is that the leader besides contributes an adjacent magnitude to the employer's account.

From the employer's side, a 3.67 per cent publication goes to the employee's EPF account, and the remaining 8.33 per cent goes to their Employees' Pension Scheme (EPS).

The EPS publication helps them get monthly pension astatine the status property of 58, oregon successful definite conditions, anterior to that.

The wide publication with years of compounding tin assistance 1 make a status corpus that tin assistance them attain oregon support fiscal state successful their status days.   

EPF calculation conditions

The concern duration volition beryllium 35 years (from 25 years of property to 60 years) and the monthly publication volition stay the aforesaid from the opening to the end.

EPF Retirement Corpus Calculation: Monthly EPF publication to get Rs 1.5 cr corpus

The monthly publication successful specified a lawsuit volition beryllium Rs 6,340.

The wide EPF publication successful 35 years volition beryllium Rs 26,62,800, and the estimated EPF status corpus volition beryllium Rs 1,50,05,465.25.

EPF Retirement Corpus Calculation: Monthly EPF publication to get Rs 2.5 cr corpus

The monthly publication successful specified a lawsuit volition beryllium Rs 10,570.

The wide EPF publication successful 35 years volition beryllium Rs 44,39,400, and the estimated EPF status corpus volition beryllium Rs 2,50,16,998.06.

EPF Retirement Corpus Calculation: Monthly EPF publication to get Rs 3.5 cr corpus

The monthly publication successful specified a lawsuit volition beryllium Rs 14,790.

The EPF publication successful 35 years volition beryllium Rs 62,11,800, and the estimated EPF status corpus volition beryllium Rs 3,50,04,862.95.