NSC Calculator
See your 5-year National Savings Certificate maturity value and year-by-year compounded interest — with the 80C tax benefit worked out live.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Year-by-year growth
| Year | Opening balance | Interest earned | Closing balance |
|---|
Plan your 80C investments with a CA
We map NSC, PPF, ELSS and insurance to your ₹1.5L limit and file your ITR accurately.
Disclaimer: Indicative estimate based on annual compounding at the rate you enter. NSC rates are set quarterly by the Ministry of Finance and interest is credited on maturity. Confirm the applicable rate and tax position for your certificate.
What the NSC gives you
The National Savings Certificate is a fixed-income, Government-backed post-office scheme with a fixed 5-year term. You invest a lump sum, the interest compounds annually and is paid out with the principal at maturity. Both the investment and the reinvested interest earn you a Section 80C deduction.
How the maturity value is calculated
NSC compounds annually. Each year's interest is added to the balance and itself earns interest the next year. Over the fixed 5-year term the formula is:
| Maturity value | P × (1 + r/100)⁵ |
| P — principal | Amount invested |
| r — rate | Annual rate (7.7%) |
| Term | 5 years (fixed) |
| Total interest | Maturity − P |
| Year 1 interest | ₹7,700 |
| Year 2 interest | ₹8,293 |
| Year 3 interest | ₹8,931 |
| Year 4 interest | ₹9,619 |
| Year 5 interest | ₹10,360 |
Worked example
A ₹1,00,000 certificate bought at the current 7.7% rate and held for the full 5-year term:
Key terms explained
Annual compounding
Interest is added to your balance once a year and then earns interest itself. This is why the yearly interest rises — ₹7,700 in year 1 grows to ₹10,360 by year 5 on the same ₹1,00,000.
Section 80C benefit
The amount you invest is deductible under Section 80C (up to ₹1.5L). The reinvested interest in years 1–4 counts as a fresh 80C investment each year, so it is effectively tax-free too.
Final-year interest is taxable
Interest for the fifth year is paid out rather than reinvested, so it cannot be claimed under 80C and is added to your income and taxed at slab rate in the maturity year.
No TDS on NSC
Unlike bank FDs, NSC does not deduct any TDS. Interest accrues and is paid together with the principal at maturity — you simply report the taxable portion in your return.
Questions people ask
Short answers on NSC Calculator. Tap a question to open it.
01What is the National Savings Certificate?
A five-year small savings instrument sold through post offices. Interest is compounded annually and paid at maturity along with the principal, and the rate is fixed for the whole term at the rate prevailing when you invest.
02Does NSC qualify for section 80C?
Yes. The amount invested qualifies within the ₹1.5 lakh limit under the old regime. The interest accruing each year is also deemed reinvested and qualifies under 80C for the first four years — only the final year's interest is taxable without an offsetting deduction.
03Is NSC interest taxable?
Yes, it is taxable as income from other sources on accrual each year. No TDS is deducted at the post office, so the interest must be reported in the return whether or not it has been received.
04Can NSC be withdrawn before maturity?
Only in limited circumstances — the death of the holder, forfeiture by a pledgee, or an order of a court. Otherwise the certificate runs its full five years.
05How does NSC compare with a tax-saving FD or PPF?
NSC and a five-year tax-saving FD both lock in for five years and produce taxable interest. PPF has a 15-year term but its interest is completely exempt, which usually makes it superior for a long horizon.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.