EPF Calculator

What is EPF (Employee Provident Fund)?

EPF is a retirement savings scheme managed by the Employees’ Provident Fund Organisation (EPFO). Every month, you contribute 12% of your basic salary plus dearness allowance, and your employer also contributes an equal 12%. Out of the employer’s share, 8.33% goes to the Employee Pension Scheme (EPS) and 3.67% goes to your EPF account.

The EPF balance earns interest declared by the Government every year. The current EPF interest rate is 8.25% per year.

How does the EPF calculator work?

The calculator adds your contribution and the employer’s EPF share every month till you turn 58. Interest is calculated monthly on the contributions and credited to the account every year, which is how EPFO does it. Your salary increases every year by the percentage you enter.

• Monthly salary: your basic salary plus DA
• Your contribution: 12% by default (up to 20% through VPF)
• Employer contribution to EPF: 3.67% of salary, plus the pension (EPS) share above the ₹15,000 wage ceiling, which also goes to EPF
• Annual salary increase: expected yearly increment
• Rate of interest: 8.25% (current EPF rate)
• Retirement age: 58 years

Example: With a monthly salary of ₹50,000 at age 30, 12% contribution and 5% yearly increment, you will have about ₹2.59 crore in your EPF account at 58.

EPF tax benefits

• Your contribution qualifies for deduction under Section 80C (old regime).
• Interest is tax free if your contribution is up to ₹2.5 lakh per year.
• Withdrawal after 5 years of continuous service is fully tax free.

When can EPF be withdrawn?

• Full withdrawal at retirement (58 years) or after 2 months of unemployment.
• Partial withdrawal for house purchase, marriage, education or medical treatment after a minimum service period.
• When you change jobs, transfer the EPF account instead of withdrawing to keep the tax benefit and compounding.