About the NSC Calculator
This NSC calculator shows what a National Savings Certificate (VIII Issue) bought at a Post Office will be worth when it matures after five years. Enter the amount you invest and the interest rate, and it returns the maturity value, the total interest, and a year-by-year table of interest accrued on the certificate.
NSC interest is compounded annually but is not paid out — it is added to the certificate and the whole amount is paid at maturity. The National Savings Institute lists a rate of 7.7% a year for certificates bought between 1 April 2023 and 30 September 2026 (the latest notified quarter when this page was updated). The rate on the day you buy is locked in for the full five years, even if the government changes the rate for new certificates later, so enter the rate that applied on your purchase date.
NSC is popular with taxpayers on the old regime because the deposit qualifies for the deduction long known as Section 80C (up to ₹1.5 lakh a year across all eligible investments), and the interest accrued in years 1 to 4 is treated as reinvested and can also be claimed. The interest is taxable, so the calculator also shows the deduction value at your slab rate. There is no upper limit on how much you can invest; the minimum is ₹1,000.
With the default inputs, the maturity value after 5 years is ₹144,903.38. Change any value above to recalculate instantly.
How to use the nsc calculator
- 1Enter the amount you are investing in NSC (₹1,000 minimum).
- 2Keep 7.7% or enter the rate in force on your purchase date.
- 3Pick your tax slab if you file under the old regime to see the 80C value.
- 4Read the maturity value and the year-wise interest table.
- 5Use the year 1–4 interest figures when claiming deemed reinvestment under 80C.
Formula and method
NSC VIII Issue compounds interest once a year and pays the principal and all interest together after five years, so the maturity value is the investment multiplied by (1 + r) to the power of 5. At 7.7% that factor is about 1.4490, meaning ₹1,000 becomes roughly ₹1,449.
The interest accrued each year is the opening value of the certificate times the rate. For tax purposes the interest for years 1 to 4 is deemed reinvested, so it is eligible for the old-regime 80C deduction in the year it accrues, while the year-5 interest is simply received at maturity. The rate entered is assumed fixed for the full term, which is how NSC works: the rate on the purchase date applies until maturity.
- P
- Amount invested in the certificate
- r
- Annual interest rate (7.7% = 0.077)
- k
- Year of the certificate (1 to 5)
Worked examples
₹1 lakh at 7.7%
₹1,00,000 compounding at 7.7% a year is worth ₹1,44,903 after five years. Year-1 interest is ₹7,700, and the interest for years 1–4 adds up to about ₹34,544, which counts as reinvested for 80C. The fifth year adds the remaining ₹10,360.
₹1.5 lakh in the 30% slab
Investing the full ₹1.5 lakh 80C limit gives a maturity value of about ₹2,17,355. In the 30% slab with 4% cess the deduction on the deposit saves ₹46,800 of tax in the year of purchase, assuming no other 80C investments.
Certificate bought at the old 6.8% rate
A certificate bought in 2021, when the rate was 6.8%, keeps that rate until maturity. ₹50,000 becomes about ₹69,475 — compare this with ₹72,452 for the same amount at 7.7%.
Frequently asked questions
What is the current NSC interest rate?+
The National Savings Institute lists 7.7% a year, compounded annually and payable at maturity, for NSC VIII Issue certificates bought from 1 April 2023 to 30 September 2026. The rate is reviewed every quarter, so check the latest notification before buying.
Is NSC interest taxable?+
Yes. NSC interest is taxable at your slab rate. Because the interest for years 1–4 is deemed reinvested, old-regime taxpayers can usually claim it under 80C in the same year, which offsets the tax; the year-5 interest has no such offset.
How much does ₹1,000 in NSC become after 5 years?+
At 7.7% compounded annually, ₹1,000 grows to about ₹1,449 after five years. Each ₹1 lakh therefore becomes roughly ₹1,44,903.
Can I withdraw NSC before maturity?+
Premature encashment is allowed only in limited cases, such as the death of the holder, forfeiture by a pledgee, or a court order. Otherwise the certificate must be held for the full five years.
Is there a maximum investment limit for NSC?+
No. The minimum is ₹1,000 in multiples of ₹100 and there is no upper limit, but only ₹1.5 lakh a year in total across all eligible investments qualifies for the 80C deduction.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.