Financial Calculators
VPF Calculator
Extra contributions to your provident fund, at the EPF rate, with the EPF's tax treatment.
VPF balance at the end
₹58,98,198
- Total contributed
- ₹24,00,000
- Interest earned
- ₹34,98,198
Follows the EPF convention: interest accrues on each month's running balance and is credited once at year end. The rate is declared yearly by the EPFO. Employee contributions above a threshold (currently Rs 2.5 lakh a year) earn taxable interest; the rest is tax-free.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
The quiet debt option
Voluntary Provident Fund lets a salaried employee contribute more than the mandatory 12% of basic to the same EPF account, earning the same declared rate. There is no separate account, no new paperwork beyond a request to the employer, and the interest is tax-free within the annual contribution threshold.
For the debt portion of a long-term portfolio it is hard to beat: sovereign-backed, tax-efficient and locked away from casual withdrawal. The lock-in is the feature, not the flaw.
EPF-style interest
Each month: balance += contribution; interest += balance x rate/12\nEach year end: balance += interestWorked example: Rs 10,000 a month in VPF at 8.25% for 20 years builds a balance of Rs 58,98,198 on Rs 24,00,000 contributed, with Rs 34,98,198 of interest.
Frequently asked questions
Is VPF interest tax-free?
Employee contributions above a threshold per year (Rs 2.5 lakh at the time of writing) earn interest that is taxable; below that, interest is tax-free. The threshold and the rate are set by the government and can change.
Can I change or stop the contribution?
Usually once a year, through your employer, at the start of the financial year. Some employers allow more frequent changes.
VPF or PPF?
VPF generally offers a higher rate and no separate account, but is tied to your employment. PPF is independent of your job and has a 15-year term. Many investors use both, VPF first if the rate is higher.
Is this relevant for defence personnel?
Serving personnel have DSOP or AFPP rather than EPF; the DSOP calculator covers those. VPF applies after taking up salaried civilian employment post-service.
Debt that compounds without drama.
We fit VPF, PPF and debt funds together so the safe part of your plan earns what it should.