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EPF Calculator

Finance

About This Tool

EPF Calculator – Corpus, EPS Split and the ₹2.5 Lakh Rule

The Employees' Provident Fund (EPF) is the retirement account most salaried employees in India build without thinking about it. Every month 12% of your Basic + DA is deducted from your salary, your employer adds a matching amount, and EPFO credits interest once a year. This EPF calculator projects your PF corpus at retirement the way EPFO actually runs the account. It shows how much of your employer's contribution reaches your passbook, what your payslip's PF wage basis is worth, and when Voluntary PF starts producing taxable interest.

Where the employer's 12% really goes

Your own 12% goes straight into your EPF account. Your employer's 12% is split. A part equal to8.33% × min(wages, ceiling) goes to the Employees' Pension Scheme (EPS), and only the rest lands in EPF. The wage ceiling was raised from ₹15,000 to ₹25,000 a month on 17 September 2026, so the EPS share is now capped at ₹2,083 a month (it used to be ₹1,250). With Basic + DA of ₹50,000, your employer pays ₹6,000, ₹2,083 of it goes to EPS, and your passbook shows ₹3,917. Because the EPS amount is fixed, its share of the employer's contribution shrinks as your salary grows. EPS stops at 58, and from then on the whole employer contribution goes to EPF. Members who are not in EPS get the full employer share in EPF from day one.

EPS is a pension, not a balance
Money diverted to EPS does not earn EPF interest and you cannot withdraw it as a lump sum. It buys a monthly pension from 58. Use the EPS Pension Calculator to estimate that pension.

How EPF interest is calculated

EPF interest does not compound monthly. EPFO adds up the closing balance of each month in the financial year and creditsinterest = Σ month-end balances × rate ÷ 12 once, on 31 March. Your employee share and employer share are credited separately and rounded to whole rupees. If you contribute ₹6,000 a month, the month-end balances of your employee share add up to 6,000 × (1 + 2 + … + 12) = ₹4,68,000, which earns ₹3,218 at 8.25%. The rate is declared every year by EPFO's Central Board of Trustees; it was 8.25% for FY 2023-24, 2024-25 and 2025-26. The tool applies the rate you enter to every future year and shows how much the corpus moves if it ends up 0.75 points higher or lower.

Full wages or capped at the ceiling?

If your Basic + DA is above the ceiling, your employer may contribute on your full wages or only on ₹25,000. Your own share can follow either basis too. This one payslip setting often changes the retirement corpus several-fold. The PF wage basis comparison shows your corpus under each basis with your own inputs, so you can see what a capped contribution costs before you negotiate a salary structure.

VPF and the ₹2.5 lakh taxable-interest rule

Voluntary Provident Fund (VPF) lets you put in more than 12%, up to 100% of Basic + DA in total. It earns the same rate, but your employer doesn't match it. Since FY 2021-22, your own contributions (employee share plus VPF) above₹2,50,000 in a financial year go into a separate taxable account. The interest on that account is taxed at your slab every year, under both tax regimes. The calculator splits each month's contribution at the exact point you cross the threshold, and the split resets every April. The Goal tab finds the smallest whole VPF % that reaches a target corpus and shows how much extra taxable interest it creates.

Old regime only
Your EPF and VPF contributions qualify for the shared ₹1.5 lakh deduction only under the old tax regime. The new regime gives no deduction for them. Employer contributions to EPF, NPS and superannuation above ₹7.5 lakh a year are taxed as a perquisite.

Reading the results

The monthly split shows where each rupee goes in any projected year. The growth chart separates your contributions, VPF, the employer's EPF share and interest. The yearly bars mark the year from which interest exceeds what you and your employer put in. The year-by-year table flags the year EPS stops, the first taxable year and your retirement year, and you can download it as CSV. Your passbook may differ by a few hundred rupees a year, because contributions are credited the month after the salary month. Every calculation runs in your browser.

Frequently Asked Questions

Is the EPF Calculator free?

Yes, EPF Calculator is totally free :)

Can I use the EPF Calculator offline?

Yes, you can install the webapp as PWA.

Is it safe to use EPF Calculator?

Yes, any data related to EPF Calculator only stored in your browser (if storage required). You can simply clear browser cache to clear all the stored data. We do not store any data on server.

How does this EPF calculator work?

It walks your EPF account month by month, April to March, from now to retirement. Each month it adds your 12% (plus any VPF) and your employer's share after the EPS diversion. Interest is the sum of the 12 month-end balances × rate ÷ 12, credited on 31 March. Every amount is rounded to whole rupees, as on your passbook.

My employer contributes 12%, so why does my passbook show less?

Part of the employer's 12% goes to the Employees' Pension Scheme (EPS): 8.33% of your wages up to the ceiling. Since the ceiling rose to ₹25,000 on 17 Sep 2026, that is at most ₹2,083 a month. EPS money builds your monthly pension from 58. It is not part of your EPF balance, so only the rest of the employer's contribution appears on the passbook.

Is EPF interest taxable?

Interest on your own contributions (employee share plus VPF) up to ₹2.5 lakh a financial year is tax-free while you work. Contributions above that go into a separate taxable account, and the interest on that account is taxed at your slab every year, under both regimes. Interest credited after you stop working is also generally treated as taxable.

Is VPF worth it?

VPF earns the same declared EPF rate, which is fixed and was 8.25% for FY 2025-26, but your employer does not match it. It is attractive while your own contributions stay under ₹2.5 lakh a year. Above that, the interest becomes taxable every year, so compare the post-tax return with other options. The Goal tab shows the VPF % a target needs and when you would cross the threshold.

What happens to my EPF if I stop working before 58?

You can withdraw the balance once you have been out of work for the qualifying period, or leave it in EPF. An account with no new contributions keeps earning interest until you turn 58. Turn on the 'leave the balance until 58' option to see both figures side by side.

Is EPF withdrawal tax-free?

A final withdrawal is tax-free after 5 years of continuous service. Service with earlier employers counts if the balance was transferred. A withdrawal before 5 years is taxable, and tax is deducted at source on withdrawals of ₹50,000 or more. This calculator projects the balance only; it does not model withdrawals.