🇮🇳 India

EPF vs PPF Calculator India — FY 2025-26

Compare EPF (8.25%) and PPF (7.1%) side by side: 25-year corpus growth, employer FREE match (3.67%), Section 9D taxable interest threshold, and the optimal EPF+PPF combo strategy. All amounts in Indian rupees. Updated for FY 2025-26.

EPF 8.25% | PPF 7.1% | FY 2025-26
\u20B9/month
EPF is calculated on basic salary + DA. Employee contributes 12%, employer contributes 12% (3.67% EPF + 8.33% EPS).
\u20B9/year
Max \u20B91,50,000/year. Default is the maximum. Monthly equivalent = annual \u00F7 12.
years
Years of EPF contribution. PPF needs 15yr minimum; extensions in 5-year blocks.
%
Expected annual increment in basic salary (affects EPF contributions each year).
% p.a.
Current EPF rate: 8.25% (FY 2025-26, declared by EPFO). Change for sensitivity analysis.
% p.a.
Current PPF rate: 7.1% (Q1 FY 2025-26, Ministry of Finance). Reviewed quarterly.

How to Use This Calculator

Side by Side tab

Enter your basic salary + DA per month and PPF annual contribution (default: max ₹1,50,000). Set your tenure (how many years you will contribute to both). The calculator projects EPF corpus (employee 12% + employer 3.67%) at the EPF rate of 8.25%, alongside PPF corpus at 7.1%, with a year-by-year comparison table. Use “More options” to adjust salary increment, EPF rate, and PPF rate for sensitivity analysis.

Employer Match Impact tab

See exactly how much FREE money your employer’s 3.67% EPF contribution adds over your career. The calculator shows EPF corpus without employer match (employee 12% only) vs with employer match, quantifying the employer’s compounded contribution. Understand how EPS (8.33% to pension) and EPF (3.67% to corpus) split the employer’s 12%.

EPF + PPF Combo tab

Stack both instruments together. Enter basic salary (for EPF) and PPF contribution. The calculator shows the combined corpus: EPF (employee + employer) + PPF, total self-invested amount, total employer free contribution, and total wealth gain. Understand how the two complement each other — EPF is mandatory with employer match, PPF is voluntary with full EEE and no Section 9D risk.

Share your result

Every input is encoded in the URL. Click Share to send your exact EPF vs PPF scenario to a financial advisor, HR colleague, or save for later reference.

The Formulas

EPF uses monthly contributions that compound monthly; PPF uses annual contributions that compound annually. Both are government-backed with EEE tax status.

EPF (Employees’ Provident Fund) — FY 2025-26:
Employee contribution = 12% of (Basic + DA) per month
Employer EPF contribution = 3.67% of (Basic + DA) per month [goes to corpus]
Employer EPS contribution = 8.33% of min(Basic + DA, ₹15,000) per month [goes to pension]

Total monthly EPF deposit = Employee (12%) + Employer EPF (3.67%)
EPF interest rate = 8.25% p.a. (FY 2025-26, EPFO CBT declared)

EPF corpus = ∑ [Monthly deposit × (1 + 8.25%/12)(remaining months)]
Interest calculated on monthly running balance; credited annually at year-end

PPF (Public Provident Fund) — FY 2025-26:
Annual contribution: min ₹500, max ₹1,50,000
PPF interest rate = 7.1% p.a. (Q1 FY 2025-26, Ministry of Finance)
Interest compounded annually; credited on 31st March each year
Deposits before 5th of month earn interest for that month

PPF corpus = Annual contribution × [(1 + 7.1%)n − 1] / 7.1% × (1 + 7.1%)
(end-of-year deposits, n = tenure in years)

Key rate comparison:
EPF: 8.25% + employer 3.67% free = effective much higher on total invested
PPF: 7.1%, no employer match, no Section 9D risk, full voluntary control

The employer’s 3.67% contribution to EPF is the critical differentiator. It grows at the same 8.25% rate as your own contribution, but costs you nothing — it is your employer’s statutory obligation under the EPF & Miscellaneous Provisions Act 1952.

Example

Rahul — IT employee, ₹50,000 basic+DA, 25 years, FY 2025-26

Rahul joins a company at age 30 with ₹50,000/month basic+DA. He gets 5% annual increments and plans to stay for 25 years. He also contributes the maximum ₹1,50,000/year to PPF.

Step 1: Monthly contributions (Year 1 at ₹50,000 basic)

Employee EPF (12% of ₹50,000)₹6,000/month
Employer EPF (12% − EPS cap: ₹6,000 − ₹1,250)₹4,750/month (FREE)
Employer EPS (8.33% of ₹15,000 cap)₹1,250/month (pension, not EPF corpus)
PPF monthly equivalent (₹1.5L/12)₹12,500/month

Note: For basic salary above ₹15,000, employer’s EPS contribution is capped at ₹1,250/month. The remaining employer contribution (12% − EPS capped portion) goes to EPF — this is why employer EPF is ₹4,750 rather than the commonly cited 3.67% flat rate.

Step 2: EPF corpus after 25 years at 8.25%

EPF rate8.25% p.a. (FY 2025-26)
Annual salary increment5% (EPF contributions grow each year)
EPF corpus (employee + employer)₹1.73 Cr
Of which employer contribution grew to₹80.3 L (FREE money)
EPF tax statusEEE (tax-free after 5yr continuous service)

Step 3: PPF corpus after 25 years at 7.1%

PPF annual contribution (max)₹1,50,000/year
PPF rate7.1% p.a. (Q1 FY 2025-26)
PPF corpus after 25 years₹1.03 Cr
PPF total invested₹37.5 L (25 × ₹1.5L)
PPF wealth gain₹65.6 L (at 7.1% compounded annually)
PPF tax statusEEE — fully tax-free (no ₹2.5L threshold)

Step 4: Combo total

EPF corpus (full, with employer)₹1.73 Cr
PPF corpus₹1.03 Cr
Total combo corpus₹2.76 Cr
EPF wins vs PPF by₹69.9 L (8.25% rate + employer match + salary growth)
Section 9D risk?No (₹6,000/mo × 12 = ₹72K/yr, well below ₹2.5L threshold)

Key insight: EPF wins vs PPF primarily because of the employer’s free contribution (which exceeds 3.67% when your basic is above ₹15,000) and the higher interest rate (8.25% vs 7.1%). EPF contributions also grow each year with your salary. PPF is the perfect complement: voluntary, no employer needed, full EEE, loan from year 3, early access from year 7. Together: ₹2.76 Cr over 25 years with zero tax.

EPF vs PPF — Feature Comparison

Returns & Rate
Feature EPF PPF
Interest rate (FY 2025-26) 8.25% p.a. 7.1% p.a.
Rate set by EPFO Central Board of Trustees (annually) Ministry of Finance (quarterly)
Rate guarantee Government-backed, declared annually Sovereign-backed, reviewed quarterly
Employer contribution 3.67% of basic (FREE) None — voluntary self-investment
Rate advantage +1.15% over PPF
Contributions & Eligibility
Feature EPF PPF
Who can invest Salaried employees (establishments 20+ employees) Everyone (salaried, self-employed, housewife, NRI)
Mandatory? Yes (for covered establishments) Voluntary
Min contribution 12% of basic+DA (no upper cap) ₹500/year
Max contribution No upper limit (12% of actual basic) ₹1,50,000/year
VPF Voluntary PF: contribute above 12% at EPF rate N/A (PPF itself is voluntary)
Tax Treatment (EEE vs Section 9D)
Tax Aspect EPF PPF
Investment deduction Section 80C up to ₹1.5L (old regime) Section 80C up to ₹1.5L (old regime)
Interest tax Tax-free below ₹2.5L/yr employee contribution; taxable above (Section 9D, from FY 2021-22) Fully tax-free — no threshold
Maturity tax Tax-free after 5yr continuous service (EEE) 100% tax-free (EEE always)
Tax status EEE (with ₹2.5L Section 9D caveat) EEE (unconditional)
New tax regime No 80C; employer contribution (80CCD(2) equivalent) still deductible No 80C deduction in new regime
Liquidity & Lock-in
Feature EPF PPF
Lock-in Until retirement (58) or job change/unemployment 15 years (extendable in 5-year blocks)
Partial withdrawal After 5yr service, for housing/medical/education/marriage From 7th year: up to 50% of balance at end of 4th year or prior year (lower)
Loan facility Not available (withdrawal allowed instead) Year 3 to Year 6: up to 25% of balance at end of 2nd preceding year
Full withdrawal At retirement/58, or 2 months after leaving employment At maturity (15yr) or extension periods

FAQ

For salaried employees, EPF generally builds a larger corpus due to: (1) higher rate 8.25% vs PPF’s 7.1%; (2) employer’s FREE 3.67% EPF contribution growing at the same rate; (3) EPF contributions scale with salary increments. However, both have different roles: EPF is mandatory and employer-supported; PPF is voluntary and gives you flexible, sovereign-backed savings with full EEE (no Section 9D threshold), loan facility, and partial withdrawal from year 7. Best strategy: max both. EPF is already happening by default; add PPF up to ₹1.5L/year on top for a complete, diversified EEE stack.
Your employer contributes 12% of your basic+DA, split as: 3.67% to your EPF account (this builds your corpus and earns 8.25%) and 8.33% to EPS (Employee Pension Scheme — this provides a monthly pension after age 58, capped at ₹15,000 salary). The EPS contribution is capped at ₹1,250/month (8.33% of ₹15,000 wage ceiling). If your basic exceeds ₹15,000, the EPS stays at ₹1,250, and any employer contribution above 3.67% also flows to your EPF. So the 3.67% EPF employer share is completely free money that compounds at 8.25% alongside your own contribution — PPF has no equivalent.
From FY 2021-22, interest on employee EPF contributions exceeding ₹2,50,000 per year is taxable under Section 9D of the Income Tax Act (Finance Act 2021). This means if your employee EPF contribution (12% of basic) is more than ₹2.5L/year, the interest earned on the excess is taxed at your slab rate. This affects employees with basic salary above roughly ₹1,74,000/month. For most employees, this is not a concern. Employer EPF contributions are NOT subject to this threshold. PPF has no Section 9D equivalent — all PPF interest is tax-free regardless of amount, making PPF cleaner for very high earners.
EPF allows partial withdrawal after 5 years of continuous service for specific purposes: housing (purchase/construction/renovation), medical treatment (self or family), education (post-matriculation for children), and marriage (self, siblings, children). Full EPF withdrawal is allowed when you are unemployed for 2+ months, at retirement (age 58), or on reaching 57 years (advance withdrawal). After job change, your EPF can be transferred to the new employer’s EPFO account via UAN. PPF is more flexible for partial withdrawals: you can withdraw from the 7th year onwards without specifying a reason, up to 50% of the balance.
The PPF interest rate for Q1 FY 2025-26 (April–June 2025) is 7.1% per annum, compounded annually. The rate is set quarterly by the Ministry of Finance based on government bond yields (linked to 10-year G-Sec yield + 0.25% spread, though actual rates may differ from the formula). PPF rate has been 7.1% since Q1 FY 2020-21 — unchanged for 5+ years. Interest is calculated on the minimum balance between the 5th and last day of each calendar month, so deposits before the 5th earn interest for that month. Key PPF rules: max ₹1.5L/year, min ₹500/year, 15-year lock-in, partial withdrawal from year 7, loan from year 3–6.

Related Calculators

Add This Calculator to Your Website

Embed the sum.money EPF vs PPF Calculator on your site. Free, responsive, always updated with current rates.

<iframe src="https://sum.money/embed/in/epf-vs-ppf-calculator" width="100%" height="700"></iframe>