EPF Calculator

The EPF interest rate is 8.25% for FY 2025-26, ratified by the government and the third consecutive year at this level. Interest is calculated monthly on the running balance but credited once a year. EPF is one of the highest-yielding government-backed debt instruments available to salaried Indians.

An employee contributes 12% of basic salary plus dearness allowance. The employer also contributes 12%, but of that, 8.33% is diverted to the Employees' Pension Scheme (EPS, capped at a ₹15,000 wage) and only 3.67% goes into EPF. This calculator builds your EPF balance from the employee's 12% plus the employer's 3.67%, which is what actually compounds in your EPF account.

EPF also enjoys EEE status if you stay invested for 5+ continuous years: contributions qualify under Section 80C, interest is tax-free (with an exception for employee contributions above ₹2.5 lakh/year), and the maturity amount is tax-free on retirement. Withdrawals before 5 years of service can be taxable.

EPF is an excellent safe foundation, but at ~8.25% against long-run inflation it grows wealth slowly compared to equity. Most planners treat EPF as the debt anchor of a retirement portfolio and add equity SIPs or NPS for higher long-term growth. Use the FIRE and retirement-corpus calculators to check whether your EPF alone meets your target.