The Employees' Provident Fund is a forced retirement saving for most salaried people in India. Small monthly amounts, earning 8.25% interest that is usually tax-free, turn into a large sum over a career. The calculator projects your balance year by year until retirement.
How EPF contributions work
Each month, you put in 12% of your basic pay (plus dearness allowance). Your employer also pays 12%, but it is split:
- 8.33% goes to the Employees' Pension Scheme (EPS), worked out on a wage of at most ₹15,000, so at most ₹1,250 a month.
- The rest of the employer's 12% goes into your EPF account.
Monthly EPF deposit = 12% of basic (yours) + 12% of basic − EPS share (employer's)EPS share = 8.33% × min(basic, ₹15,000)Interest = 8.25% a year, worked out monthly on the running balance and credited once a yearSome employers cap PF at a basic of ₹15,000 (₹1,800 a month each). The calculator lets you enter your actual basic; if your PF is capped, enter ₹15,000.
Worked example
Example: Age 25, basic ₹30,000 a month, ₹1 lakh already saved
Basic grows 5% a year; EPF interest stays at 8.25%; retirement at 58.
Year one deposit is about ₹71,400 (₹3,600 from you and ₹2,350 from the employer each month).
Projected balance at 58: about ₹2.31 crore. Deposits add up to about ₹64 lakh; the other ₹1.6 crore or so is interest, which shows how much the later years of compounding are worth.
Leaving even a few years early, or withdrawing the balance at every job switch, cuts the final figure sharply. Transfer your EPF to the new employer instead using your UAN.
EPF interest rate and tax
The rate for FY 2025-26 is 8.25%, the same as the two years before. EPFO proposes the rate each year and the government approves it.
- Your own contribution counts towards Section 80C in the old regime.
- Interest is tax-free, except interest on the part of your own contributions above ₹2.5 lakh a year.
- Employer contributions to EPF, NPS and superannuation together above ₹7.5 lakh a year are taxable.
- Withdrawals are tax-free after 5 years of continuous service (including service with previous employers if you transferred the account).
Withdrawing EPF before retirement
You can take partial withdrawals for specific needs such as buying or building a home, medical treatment, children's education or a wedding, subject to service conditions. If you're unemployed for a month you can withdraw part of the balance, and the rest after two months. Online claims through the EPFO member portal with your UAN usually settle within a few weeks.
Projections assume today's interest rate continues. EPFO can change it every year.
How to use this calculator
- Enter your monthly basic pay, age and retirement age.
- Add your current EPF balance if you have one.
- Adjust salary growth and the interest rate if you like.
FAQs
What is the EPF interest rate?
8.25% for FY 2025-26, the same as the previous two years. The rate is set each year by EPFO and approved by the government.
Why is my employer's share smaller than mine in EPF?
Part of the employer's 12% goes to the Employees' Pension Scheme, not your EPF account.
Results are estimates for resident individuals under 60 and aren't tax, legal or financial advice. For your own return, check with a chartered accountant. Spotted a mistake? Tell us.