KVP Calculator
Calculate Kisan Vikas Patra maturity value and doubling period
Investment Amount₹1,00,000
KVP Interest Rate (p.a.)7.5%
Current rate: 7.5% p.a. (Q1 FY 2025-26) · Compounded annually
Maturity Value
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Tax StatusTaxable at slab rate
💡 KVP interest is taxable at your income slab rate. Unlike PPF/SSY, there is no EEE benefit. Interest must be declared annually on an accrual basis even though it is paid at maturity.
📅 Year-wise KVP Growth
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What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra is a government-backed certificate savings scheme offered through Post Offices and authorised banks. Originally launched in 1988 for farmers, it is now open to all Indian residents. KVP's defining feature is a guaranteed money-doubling promise — your investment doubles in a fixed number of months determined by the prevailing interest rate. At the current rate of 7.5% (Q1 FY2026), money doubles in 115 months (approximately 9 years 7 months).
KVP Key Rules & Features (2025)
| Feature | Details |
|---|---|
| Current Interest Rate | 7.5% p.a., compounded annually (Q1 FY2026) |
| Doubling Period | 115 months (~9 years 7 months) at 7.5% |
| Minimum Investment | ₹1,000 (no maximum limit) |
| Denominations | ₹1,000 / ₹5,000 / ₹10,000 / ₹50,000 / ₹1,00,000 |
| Who can invest | Any Indian resident (individual, minor through guardian, joint) |
| Where to buy | Post Offices and authorised bank branches |
| Lock-in period | 30 months (2.5 years) — premature encashment not allowed before this |
| Tax status | Taxable — interest is fully taxable at slab rate |
| TDS | No TDS deducted on KVP |
| Nomination | Available — nominee receives proceeds on account holder's death |
KVP Maturity Formula
KVP Maturity Value
M = P × (1 + r)^n
M = Maturity value · P = Principal invested · r = Annual interest rate (decimal) · n = Tenure in years (doubling period ÷ 12)
Doubling Period (in months)
Doubling Months = ln(2) ÷ ln(1 + r) × 12
At 7.5%: ln(2) ÷ ln(1.075) × 12 = 0.6931 ÷ 0.0723 × 12 ≈ 115 months
KVP Calculation — Worked Example
📘 ₹1,00,000 invested in KVP at 7.5% p.a.
| Principal | ₹1,00,000 |
| Interest Rate | 7.5% p.a. (compounded annually) |
| Doubling Period | 115 months (9 yr 7 months) |
| Maturity After 115 Months | ₹2,00,000 |
| Interest Earned | ₹1,00,000 |
| Effective Return | 100% absolute (7.5% CAGR) |
KVP vs Fixed Deposit — Which is Better?
| Feature | KVP | Fixed Deposit |
|---|---|---|
| Interest Rate (2025) | 7.5% p.a. | 6.5–9% (varies by bank/tenure) |
| Government backing | Yes — sovereign guarantee | DICGC insured up to ₹5L |
| Maximum investment | No limit | No limit |
| Lock-in | 30 months minimum | Premature exit with penalty |
| Tax on interest | Fully taxable (no TDS) | Fully taxable (TDS if >₹40,000/yr) |
| Flexibility | Certificate-based, less flexible | More flexible tenures |
| Best for | Capital safety, no investment limit, sovereign guarantee | Flexibility, higher rates at SFBs |
KVP Tax Treatment
KVP does not enjoy EEE tax status like PPF and SSY. Here is how KVP is taxed:
- Interest taxation: Fully taxable as "Income from Other Sources" at your applicable slab rate (5%, 10%, 15%, 20%, or 30% under New Regime).
- No TDS: The Post Office does not deduct TDS on KVP interest. However, you are legally required to declare the interest income in your ITR every year on an accrual basis — even though the interest is paid only at maturity.
- No 80C benefit: KVP investment does not qualify for Section 80C deduction.
- On maturity: The entire maturity amount is paid without TDS. Declare any undeclared accrued interest in the maturity year's ITR.
Frequently Asked Questions
Can I buy KVP online?
Yes — KVP can be purchased online through India Post Payments Bank (IPPB) app or by visiting the Post Office. Some authorised banks also offer KVP through their branches. The certificate is issued in physical or e-mode (linked to your savings account).
Can KVP be used as collateral for a loan?
Yes — KVP certificates can be pledged as collateral for loans from banks and NBFCs. The loan amount is typically up to 80–90% of the KVP's current value. This makes KVP useful for investors who may need emergency liquidity without breaking the investment.
Can I transfer KVP to another person?
Yes — KVP can be transferred from one person to another in specific cases: on death of the holder (to nominee/legal heir), on court order, to a pledgee (bank), or in case of joint holders. Transfer between individuals by choice (like gifting) is not permitted during the lock-in period.
Is PAN mandatory for KVP investment?
PAN is mandatory for KVP purchases above ₹50,000. For investments of ₹10 lakh or more, both PAN and Aadhaar are required. This was introduced to prevent money laundering through anonymous investments in KVP.