EPF vs VPF vs PPF Comparison Calculator

EPF: 8.25% | VPF: 8.25% | PPF: 7.1% · FY 2026-27 · EEE Tax Status

Compare EPF, VPF, and PPF maturity corpus side-by-side. See which gives better returns, tax savings, and suits your retirement strategy — updated with the latest government-declared rates.

EPF: 8.25% FY 24-25 VPF: 8.25% (Same as EPF) PPF: 7.1% Q1 FY 26-27 All EEE Tax-Free

Investment Parameters

20 Years
5 Yrs35 Yrs

EPF Contribution

8.25% p.a.
₹5,000

Employer contributes 12% of Basic; you contribute 12%. Enter combined amount.

VPF Additional Contribution

8.25% p.a.
₹3,000

Optional voluntary contribution. Same EPF rate. No separate account needed.

PPF Contribution

7.1% p.a.
₹5,000

Capped at ₹1.5L per year. 15-year lock-in with 5-year extensions.

EPF Maturity

₹—

Interest: —

EPF+VPF Maturity

₹—

Interest: —

PPF Maturity

₹—

Interest: —

Detailed Comparison

Parameter EPF VPF PPF
Monthly Contribution———
Total Invested———
Interest Rate8.25%8.25%7.1%
Interest Earned———
Maturity Value———
Tax on MaturityEEE*EEE*EEE

*EPF/VPF interest on employee contribution above ₹2.5L/year is taxable from FY 2021-22.

EPF vs VPF vs PPF — Detailed Feature Comparison

Feature EPF VPF PPF
Interest Rate (FY 24-25)8.25%8.25%7.1%
CompoundingAnnual (credited monthly)AnnualAnnual
Who Can Invest?Salaried (mandatory)Salaried onlyAnyone
Employer Contribution✓ 12% (EPF+EPS)✗ None✗ None
Max Contribution12% Basic+DA (employee)Up to 100% Basic+DA₹1.5L per year
Lock-in PeriodTill retirement / 5 yrs serviceTill retirement (can stop anytime)15 years (extendable)
Partial WithdrawalYes (specific purposes)Yes (same as EPF)From Year 7
Tax on ContributionExempt (80C)Exempt (80C)Exempt (80C)
Tax on InterestEEE (up to ₹2.5L/yr)*EEE (up to ₹2.5L/yr)*Always Tax-Free
Tax on MaturityExempt (5+ yrs service)ExemptAlways Exempt
Loan Against✓ Yes✓ Yes✓ Yes (Yr 3-6)
Governed ByEPFOEPFOGovernment / Post Office / Banks

*From FY 2021-22, interest on EPF/VPF employee contribution > ₹2,50,000/year is taxable.

💡 The #1 Insight: VPF is the Best Kept Secret for Salaried Employees

VPF earns 8.25% — exactly the same as EPF — while PPF earns only 7.1%. Over 20 years at the same monthly contribution, VPF generates ~16% higher corpus than PPF. For salaried employees who can maximize VPF through payroll, this is the highest-yielding, government-guaranteed, tax-free investment available today.

⚠️ However: if your VPF + EPF contribution exceeds ₹2.5 lakh per year, the interest on the excess becomes taxable. The first ₹2.5L/year of combined EPF+VPF contribution remains EEE.

Frequently Asked Questions

Which is better: EPF, VPF, or PPF?
EPF and VPF both earn 8.25% — significantly higher than PPF at 7.1%. For salaried employees, VPF is the best option since it earns the same EPF rate, is EEE tax-free, and requires no separate account. PPF is ideal for self-employed individuals who cannot access EPF/VPF.
What is VPF and how is it different from EPF?
VPF is a voluntary extension of EPF. While EPF mandates 12% of Basic+DA, you can voluntarily contribute up to 100% of Basic+DA through VPF at the same 8.25% rate. VPF is deducted through payroll and goes into the same EPFO account. No separate paperwork — just tell your HR to increase EPF deduction.
Is VPF better than PPF?
For salaried employees, VPF is generally better: earns 8.25% vs PPF's 7.1%, both EEE tax-free, no separate account needed. However, PPF has better partial withdrawal flexibility from Year 7 and is accessible to all including self-employed.
Is EPF interest taxable above ₹2.5 lakh contribution?
Yes. From FY 2021-22, interest on employee's EPF/VPF contribution exceeding ₹2,50,000 per year is taxable at slab rates. For government employees, the threshold is ₹5,00,000. Contributions below these thresholds remain EEE.
What is the current EPF interest rate?
EPFO declared 8.25% for FY 2025-26. The FY 2025-26 rate is to be announced by EPFO's Central Board of Trustees. Historically, EPF rates have ranged from 8.15% to 8.65% in the last decade.
What is the current PPF interest rate?
The PPF interest rate for Q1 FY 2026-27 (April–June 2026) is 7.1% per annum, compounded annually and credited at year end. It has remained at 7.1% since April 2020 despite multiple rate review cycles.
Can I have both VPF and PPF simultaneously?
Yes! You can contribute to both VPF (via payroll) and PPF (via bank/post office) simultaneously. Together they maximize your EEE savings. Combined 80C deduction is capped at ₹1,50,000 per year.
What happens to EPF/VPF on job change?
Your EPF/VPF corpus follows you via UAN (Universal Account Number). On a job change, link your UAN with the new employer — the balance transfers automatically. VPF contributions stop with your old employer and restart with the new one. PPF is completely portable and unaffected by job changes.

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