How is EPF interest calculated?
EPF interest is accrued monthly on running balance and credited at financial year close as per notified EPFO rates.
EPF Calculator (India) 2026 — Interest, VPF, Withdrawals
Model EPF balance using FY-wise rates, wage ceiling vs higher wages, VPF, and withdrawal impact.
Period
Salary Inputs
Withdrawals
Interest Mode
Monthly contribution snapshot
Employee EPF (12%)
₹1,800
Employer EPF
₹550
Employer EPS diversion
₹1,250
VPF (optional)
₹0
Total monthly EPF credit: ₹2,350. EPS diversion is not part of EPF balance.
Totals
Total contributions₹1,69,200
Withdrawals₹0
Interest credited₹46,721
Closing balance₹2,15,921
FY breakdown
| FY | Contrib | Withdrawals | Interest | Closing | Rate |
|---|---|---|---|---|---|
| 2020-21 | ₹28,200 | ₹0 | ₹1,099 | ₹29,299 | 8.5% |
| 2021-22 | ₹28,200 | ₹0 | ₹3,420 | ₹60,919 | 8.1% |
| 2022-23 | ₹28,200 | ₹0 | ₹6,018 | ₹95,137 | 8.15% |
| 2023-24 | ₹28,200 | ₹0 | ₹8,915 | ₹1,32,252 | 8.25% |
| 2024-25 | ₹28,200 | ₹0 | ₹11,977 | ₹1,72,429 | 8.25% |
| 2025-26 | ₹28,200 | ₹0 | ₹15,292 | ₹2,15,921 | 8.25% |
Frequently Asked Questions
What is wage ceiling in EPF?
By default, contributions can be capped on ₹15,000 wages unless higher wage option applies per current rules.
How does VPF affect EPF balance?
VPF is voluntary employee contribution above statutory EPF, earning the same EPF interest rate while employer match does not increase.
Do withdrawals reduce future interest?
Yes. Once amount is withdrawn, that portion no longer earns interest from the withdrawal month onward.
Educational estimate only. Validate with EPFO passbook, payroll records, and official notifications.