Calculator Functionality
Our KVP Calculator uses RBI-approved compound interest formula to show:
- Real-time duration adjustment when changing rates
- Year-wise interest accumulation
- Automatic maturity amount projection
- Tax liability estimates
The duration field updates instantly using logarithmic calculations - just modify the rate to see changes
3-Step Calculation Process
- Enter principal amount (₹1,000 minimum)
- Adjust interest rate (default 7.5% for 2024-25)
- View automatic duration and year-wise breakdown
Example Workflow
₹1 Lakh @7.5% → Shows 115 months (9Y7M) → Year 1: ₹7,500 interest
Automatic Duration Calculation
When you change the interest rate, our tool uses this formula:
t = log(2) / log(1 + r)- r = Rate in decimal (7% → 0.07)
- t = Years needed to double
- Months = (t - floor(t)) × 12
7% Rate
Duration: 10Y3M
8% Rate
Duration: 9Y1M
Understanding Year-Wise Growth
| Year | Principal (₹) | Interest (₹) | Total (₹) |
|---|---|---|---|
| Year 1 | 1,00,000 | 7,500 | 1,07,500 |
| Year 2 | 1,07,500 | 8,062.50 | 1,15,562.50 |
| Year 3 | 1,15,562.50 | 8,667.19 | 1,24,229.69 |
Interest compounds annually - partial months calculated using simple interest
Special Features
- Automatic duration recalculation on rate change
- Year-wise tax liability projection
- Support for custom investment amounts
- Mobile-responsive design
For ₹10 lakh+ investments, verify with post office for bulk purchase benefits
Rate Change Scenarios
Current Rate (7.5%)
Double ₹50,000 in 9Y7M
Historical Rate (7% - 2020)
Double ₹50,000 in 10Y3M
Tax Calculation Logic
Our calculator shows:
- Gross interest earned each year
- Tax deductions at your slab rate
- Net maturity amount
₹2 Lakh @30% Tax
Total Interest: ₹2,00,000
Tax Payable: ₹60,000
Net Maturity: ₹3,40,000
Start Calculating Now
With our NSI-verified calculator, you can:
- Plan 5-year vs 10-year investments
- Compare with other schemes
- Optimize tax payments
- Track exact maturity dates
Try Now → KVP Interest Calculator Year Wise
Important Notes
- Formula aligns with India Post's 2024-25 circulars
- Accounts for rate changes mid-tenure
- Includes TDS calculations above ₹40,000
For official confirmation, visit India Post portal