EPF Calculator: How Just ₹5,000 a Month Can Grow Into ₹3.5 Crore by Retirement?

This remains a much safer option for retirement planning than others for the salaried class in India. Training oneself to put aside ₹5,000 clearly each month, with salary hikes coming in at least once each year and interest being compounded to a final rate of 8.25%, amounts to ₹3.5 crore by age 58.

What is EPF?

EPF is a government-backed retirement savings scheme run by the Employees’ Provident Fund Organization (EPFO). There is a contribution by both employees and employers at the rate of 12% on the basic salary of the employee. Out of the employer’s share, 8.33% is contributed to the Employees’ Pension Scheme (EPS), while the balance 3.67% is contributed to EPF.

How Contributions Work?

Example: For a basic salary of ₹31,900 (total salary ₹64,000):
Employee share (12%): ₹3,828
Employer share (3.67%): ₹1,172
Total EPF contribution: ₹5,000 per month
The above amount will rise with every increase in salary level and earn compound interest at 8.25%.

Long-Term Benefits

If contributions start at the age of 25 and continue till the age of 58, the EPF corpus might be around ₹3.5 crore. Out of this, roughly ₹1.33 crore would be your investment, whereas the balance would be interest accumulated over time. Furthermore, EPS contribution yields pension benefits after retirement, with the minimum assured amount set at ₹1,000 per month.

Why EPF Stands as a Safe Investment

• Backed and guaranteed by the Government.
• Not affected by market fluctuations.
• Interest rate is assured and revised periodically.
• Pension through EPS.
• Tax deductions under Section 80C.

For an employee, EPF offers a well-disciplined avenue to build long-term wealth with the assurance of financial security after retirement. A mere contribution of ₹5,000 per month can turn into a retirement corpus of ₹3.5 crore.