How this calculation works
Use the EPFO paragraph 60 credit-timing convention: the opening balance has twelve months of interest, and each new credit begins earning in the following month. The annual interest total is rounded once to a whole rupee, with 50 paise rounded upward. A fixed deposit calculator uses a different assumed compounding model.
Interest = opening × rate + sum(monthly credit × rate × remaining eligible months /12)A worked example
A ₹1,00,000 opening balance and twelve ₹10,000 credits at an assumed 8% give ₹8,000 opening-balance interest plus ₹4,400 credit interest. Estimated annual interest is ₹12,400 and closing balance ₹2,32,400.
Good to know
A gross credit-timing scenario using published paragraph 60, not an approved-rate statement or EPFO reconciliation. No withdrawals, claims, transfers, inoperative periods, EPS split or separate taxable contribution accounts. The entered credit month matters; it may differ from the salary month.
Reference: EPFO: published paragraph 60 interest conventions (opens in a new tab) ↗
Account credit month drives this model
An EPF account credit is different from gross salary, a payroll deduction and an EPS allocation. Enter the actual credited EPF amount for each month from April through March, rather than reconstructing an employer split from a percentage.
Under the published paragraph 60 convention used here, the prior year’s closing balance earns for twelve months. A new credit begins earning in the next month. April credits therefore have eleven modeled eligible months and March credits have none in the current year.
The fixed deposit calculator uses its own compounding assumptions. The EPF credit interest calculator instead tracks eligible credit months before an annual interest credit.
Annual credit is different from monthly compounding
The monthly running-balance convention measures eligible interest during the year, then credits the annual interest total. This calculator does not add a month’s interest to principal and earn interest on it again the next month.
With ₹1,00,000 opening balance, twelve ₹10,000 credits and an assumed 8% rate, the opening balance earns ₹8,000. The credits earn ₹10,000 × 8% × (11+10+…+0)/12 = ₹4,400. The combined annual estimate is ₹12,400.
Reconcile special events separately
The total interest is rounded once to the nearest rupee, with 50 paise rounding upward. Monthly rows show extra decimal places to explain the unrounded accumulation; summing displayed rounded amounts is not the posting rule.
Withdrawals, claims, transfers, inoperative periods and separately taxable contribution accounts can require other treatment. This page excludes them and leaves the rate as an explicit input. The fixed deposit calculator uses different assumptions; matching a headline rate alone does not make its result an EPF statement.
A few questions, answered
Is the default 8% an approved EPF rate?
No. It is an example assumption. Enter the applicable declared rate for a reconciliation, or your own clearly hypothetical rate for a scenario.
Do I enter the salary month or actual credit month?
Use actual account credits in their credited months. Delayed remittances can make a salary-based schedule differ from this credit-timing model.
Does it deduct tax on interest?
No. This is gross interest for the simplified supported account scenario. Separate taxable contribution accounts and tax deductions are excluded.