EPF Calculator

The Employees' Provident Fund is a mandatory retirement savings scheme for most salaried employees in India. Every month you contribute 12% of your Basic + Dearness Allowance, and your employer matches it. Of the employer's 12%, a slice (8.33%, capped at a wage ceiling) is diverted to the Employees' Pension Scheme; the rest lands in your EPF account alongside your own contribution. The EPFO declares an interest rate each year — currently around 8.25% — which is among the highest sovereign-backed returns available to ordinary savers.

The magic of EPF is quiet, automatic compounding over a working lifetime. Because the money is deducted before it reaches your bank account, you never miss it, and decades of untouched compounding turn modest monthly contributions into a substantial corpus. This calculator assumes a steady Basic + DA and credits interest on the running balance, so you can see roughly how your contributions and the accumulated interest split at retirement. In reality your salary — and therefore your contribution — usually rises over time, so treat the output as a conservative baseline.

EPF also carries one of the most generous tax treatments in the Indian system: it enjoys Exempt-Exempt-Exempt status provided you complete five years of continuous service. Your contributions qualify for Section 80C deduction, the annual interest is tax-free, and the final withdrawal is exempt. Avoid withdrawing when you switch jobs — transfer the balance instead — so the compounding and the tax shelter both stay intact. Used this way, EPF is a powerful, low-effort foundation that pairs well with market-linked options like NPS and equity SIPs.