EPF vs PPF Calculator
Compare EPF and PPF returns side by side. Enter your basic salary and PPF deposit amount to see which builds more wealth, with a full year-by-year breakdown.
Calculator Inputs
EPF = 12% of this amount
Max ₹1,50,000/year
EPF
8.25% p.a.PPF
7.1% p.a.Corpus Comparison
| Feature | EPF | PPF |
|---|---|---|
| Who can use | Salaried employees only | Any Indian resident |
| Interest rate | 8.25% p.a. | 7.1% p.a. |
| Employer match | Yes — 3.67% EPF + 8.33% EPS | No |
| Contribution | 12% of basic (mandatory) | Voluntary, up to ₹1.5L/yr |
| Lock-in | Until retirement/resignation | 15 years minimum |
| Tax treatment | EEE (taxable >₹2.5L/yr) | Fully EEE — no threshold |
| Loan facility | Not available | Years 3–6 |
| Partial withdrawal | Allowed for specific needs | From 7th year onward |
Which Should You Choose?
If you are salaried, EPF is automatic — your 12% and your employer's 3.67% flow in every month. The EPF rate (8.25%) is also higher than PPF (7.1%), so for most salaried people, EPF already forms the core of retirement savings.
The real decision is whether to supplement with VPF (more EPF at 8.25%, locked until resignation/retirement) or PPF (slightly lower rate but fully tax-free beyond any threshold, accessible after 15 years, and available as a loan in years 3–6). PPF also works for the self-employed and as a savings vehicle for children.
Frequently Asked Questions
Which is better — EPF or PPF?
EPF typically wins on returns because it earns a higher interest rate (8.25% vs 7.1%) and includes an employer contribution of 3.67% which effectively boosts your return. However, PPF is available to everyone including the self-employed, has fully tax-free interest with no threshold, and offers a loan facility. Most salaried employees should maximise EPF/VPF first, then use PPF as an additional tax-free savings vehicle.
Does EPF include employer contribution in this calculator?
Yes — the EPF corpus includes both your 12% employee contribution and the employer's 3.67% EPF contribution. The remaining 8.33% goes to EPS (Employee Pension Scheme), not your EPF account. This is why EPF typically builds a larger corpus.
What is VPF and should I use it instead of PPF?
VPF (Voluntary Provident Fund) lets you contribute more than the mandatory 12% to your EPF account at the same 8.25% rate. Since VPF interest is tax-free up to ₹2.5 lakh annual contribution, VPF generally beats PPF on rate. However PPF has no threshold on tax-free interest, making it better for high contributors.
Is PPF interest truly tax-free?
Yes — PPF has EEE (Exempt-Exempt-Exempt) status with no upper limit. Your deposits qualify for Section 80C, interest is fully tax-free, and the maturity amount is tax-free. Unlike EPF, PPF interest does not become taxable beyond any threshold.
Can I have both EPF and PPF?
Absolutely. EPF is automatic for salaried employees. PPF can be opened separately at a post office or bank. Many financial planners recommend both — EPF/VPF for higher returns, PPF for fully tax-free interest and flexibility.