Your VPF Projection
| Year | Opening Balance | Contribution | Interest | Closing Balance |
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Saving for the future is important. One smart way to grow your savings is through the Voluntary Provident Fund (VPF). It’s a simple and safe way for salaried employees to build a retirement fund. A VPF Calculator helps you find out how much money you can save over time, with interest, by making regular contributions.
What is VPF?
VPF stands for Voluntary Provident Fund. It is an extension of the Employee Provident Fund (EPF). In EPF, both the employer and employee contribute 12% of the basic salary. But with VPF, employees can choose to add more from their salary voluntarily. This extra amount also earns the same interest as EPF.
Why Use a VPF Calculator?
A VPF Calculator helps you estimate your future savings. It shows how much wealth you can build by investing a fixed amount every month until retirement. This makes it easy to plan and track your financial goals.
How to Use the VPF Calculator
The calculator needs a few details:
- Your current age
- Retirement age (usually 60)
- Basic monthly salary
- VPF contribution percentage
- Current VPF balance (if any)
- Expected interest rate (government updates this yearly)
Based on these inputs, it calculates your total contributions, interest earned, and total corpus at retirement.
Example:
Let’s say you are 30 years old, earning ₹30,000 basic salary per month, and contribute 10% (₹3,000) to VPF. If the interest rate is 8.15% and you retire at 60, the calculator will show how much your savings grow over 30 years.
Benefits of VPF
- Safe and government-backed scheme
- Higher interest rate compared to fixed deposits
- Tax-free returns under Section 80C
- Ideal for long-term retirement planning
Who Should Use the VPF Calculator?
This tool is useful for:
- Salaried employees looking to save more for retirement
- Those who want tax-saving and low-risk returns
- Anyone planning early retirement with a strong savings base
Conclusion
Saving through VPF is a smart and simple choice for long-term financial stability. With the help of a VPF Calculator, you can clearly see how your monthly contributions turn into a big savings amount over the years. Start using the calculator today and plan your retirement with confidence.