VPF Calculator 2026: Interest 8.25%, Maturity & Tax-Free Limit

This free VPF calculator shows your monthly EPF + VPF deduction, the interest at the EPFO rate of 8.25%, a year-by-year balance and your maturity corpus. It also checks whether your contributions cross the ₹2.5 lakh limit above which PF interest becomes taxable. Interest is worked out the way EPFO does it: on the monthly running balance, credited once a year.

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VPF Calculation Formula

Example: Basic + DA ₹50,000 and VPF 10%. Monthly PF = ₹6,000 EPF + ₹5,000 VPF = ₹11,000. In year 1 you put in ₹1,32,000 and earn ₹4,991 interest at 8.25%, because each month's contribution earns interest only from the next month. Over 20 years, with a 5% salary increase a year and the same rate, your own PF grows to about ₹93.9 lakh, of which about ₹50.3 lakh is interest.

VPF Interest Rate 2025-26 and History

VPF earns the same rate as EPF. The rate is recommended by EPFO's Central Board of Trustees and notified by the Government after the Finance Ministry agrees.

Source: PIB, 239th CBT meeting, 2 March 2026. The rate for 2026-27 will be decided in 2027.

What Is VPF and How It Works

The Voluntary Provident Fund (VPF) is an extra contribution you choose to make to your own EPF account, over the mandatory 12% of Basic + DA. It goes into the same account, earns the same interest and follows the same withdrawal rules.

• Limit: most employers allow EPF + VPF together up to 100% of Basic + DA.
• Mandatory part: under the EPF Scheme, 2026, the compulsory 12% applies only to wages up to the ₹25,000 ceiling (₹3,000 a month). If your payroll deducts 12% of a higher Basic + DA, the part above the ceiling is itself voluntary. Choose "Actual Basic + DA" or "Capped at ₹25,000" in the calculator to match your payslip.
• Employer: does not match VPF. The employer's share stays at the normal rate.
• How to start: ask your HR or payroll team; it is deducted from salary like EPF. Under the EPF Scheme, 2026 (G.S.R. 525(E), notified 29 June 2026), you can reduce or stop voluntary contributions at any time.
• Who can use it: only salaried employees who are EPF members. Self-employed people can use PPF instead.

For the full rules, see the VPF guide. To build this projection yourself, see the VPF calculator in Excel.

How VPF Interest Is Calculated

EPFO calculates interest every month on the running balance and credits the total once a year, after the rate for that year is notified. A month's contribution starts earning from the following month, so the contribution for the 12th month earns nothing in that year.

Example: on a running balance of ₹1,00,000, one month's interest at 8.25% is 1,00,000 × 8.25 ÷ 1200 = ₹687.50.

Because interest is added to the balance once a year, it compounds annually. The calculator follows this method for every year, and adds your salary increase at the start of each new year.

Is VPF Interest Taxable? The ₹2.5 Lakh Rule

The ₹2.5 lakh limit counts your own contributions only, EPF and VPF together, not the employer's share. Example: Basic + DA ₹1,00,000 with 12% VPF means 24% a month, ₹2,88,000 a year. Interest on the ₹38,000 above the limit, and on the interest that builds on it, is taxable. EPFO keeps such contributions in a separate taxable account. At 12% EPF alone, you cross the limit when Basic + DA is above about ₹1,73,600 a month.

VPF Withdrawal Rules (EPF Scheme, 2026)

VPF has no separate lock-in; it follows EPF rules. Under the EPF Scheme, 2026, notified on 29 June 2026, partial withdrawals are grouped under three heads:

• Essential needs: illness, education and marriage.
• Housing: purchase, construction or loan repayment.
• Special circumstances.

You need 12 months of membership, and 25% of the contributions credited to you must stay in the account as a minimum balance. The full balance is paid on final settlement, such as retirement after 55, or after 12 months without covered employment.

VPF vs PPF

Compare with the PPF calculator. For your full PF including the employer's share, use the EPF calculator. The PF wage ceiling rose to ₹25,000 from 17 September 2026; see PF wage ceiling ₹25,000. To see how VPF changes your take-home, use the salary breakup calculator. For the monthly pension from the employer's EPS share, use the EPF pension calculator.

How to Use This VPF Calculator

1. Enter your monthly Basic + DA, and choose whether your payroll takes 12% EPF on actual Basic + DA or on ₹25,000 only.
2. Enter the VPF percentage you plan to contribute over 12%.
3. Add your current PF balance if you want it included, the number of years and your expected yearly salary increase.
4. Keep the interest rate at 8.25% or change it to test other rates.
5. Read your monthly deduction, total interest, corpus, the VPF share of it, the year-by-year table and the ₹2.5 lakh tax check.