# Does EPF give interest on compound interest plus principle amount?

**Wondering how EPF compound interest calculated? Interested in resolving this query? Find responses from our ISC experts regarding the exact method of calculating this compound interest on a monthly and annual basis.**Usually compound interest calculated includes previous principle amount. Right now EPF pays interest monthly, as such in EPF passbook show interest credited at end of month.

But question is does EPF give interest on compound interest plus principle amount? Means do they include the previous year principle amount plus interest while calculating next year interest? or they simply use the principle amount without interest when calculating next year interest?

Also is it also followed for calculating monthly interest that not to use previous month interest component for next month compound interest?

But question is does EPF give interest on compound interest plus principle amount? Means do they include the previous year principle amount plus interest while calculating next year interest? or they simply use the principle amount without interest when calculating next year interest?

Also is it also followed for calculating monthly interest that not to use previous month interest component for next month compound interest?