VPF Calculator Tax Year 2026–27
Voluntary PF is the easiest way to save more without thinking about it, and the easiest way to accidentally shrink your monthly salary. See both sides of the trade.
Your result
Estimates only. Your payslip and your employer's records are the authority. Disclaimer
What VPF actually costs you
Voluntary Provident Fund is the same account as EPF, at the same interest rate, with the same rules. The difference is that you choose the amount, and your employer does not match it.
That is the whole trade-off. Every rupee of VPF is a rupee that does not reach your bank account this month, in exchange for a rupee compounding at 8.25% until you withdraw it. Whether that is a good deal depends on what else you would do with the money and how soon you need it.
What VPF has going for it
It is a debt instrument with a sovereign backing, the interest is tax free within limits, and it is automatic. Money that leaves before you see it is easier to save than money you have to decide about each month.
Whether the rate is competitive depends on what else is available when you are deciding, and that changes. We are not going to tell you it beats a fixed deposit or anything else, because that would need a comparison at a specific date and this page is not that.
Where it bites
PF is not liquid. Withdrawal is restricted, and the money is genuinely locked for most purposes until you leave employment. Committing 20% of your Basic to VPF and then needing it for a deposit is a real problem.
There is also the point where interest stops being tax free. That is ₹2,50,000 of your own contributions in a year where your employer contributes too, and ₹5,00,000 where it does not. VPF is the usual reason people cross whichever line applies to them without noticing, so the calculator flags it.
See what a VPF change does to your full in-hand salary →. Enter it under Advanced options.
Common questions
Does my employer match my VPF?
No. Your employer’s contribution stays at the statutory 12% however much you add. VPF is entirely your own money going into your own account.
Can I stop or change VPF later?
Usually yes, but not whenever you like. Most employers let you change your VPF election at the start of a financial year rather than mid-year. Ask your payroll team what their window is before committing to a large percentage.
How does VPF compare with a fixed deposit?
The declared EPF rate was 8.25% for FY 2025–26. Whether that beats a deposit depends on the deposit rates available when you are choosing, and both move, so compare them at the time rather than taking a number off a page.
The structural difference matters more than the rate. An FD can be broken; a PF balance largely cannot. They are not really substitutes, and this site is not the place to be told which to pick.
How much VPF can I contribute?
Up to 100% of Basic + DA in total employee contribution, so 88% of VPF on top of the statutory 12%. In practice, contributing anywhere near that leaves very little to live on, and pushes you well past whichever tax-free threshold applies to you.
How we keep this calculator accurate
- Tax rules are the ones in force for Tax Year 2026–27, under the Income-tax Act, 2025.
- EPF and pension figures follow EPFO’s published contribution rules.
- Professional Tax is included only for states where we have a rule we trust, and named as missing where we do not.
- Every assumption behind the estimate is shown on screen and can be changed.
- The calculator runs entirely in your browser. Your salary is never sent anywhere.
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