NSC Calculator
Reviewed by Subir Kumar Debsharma, Tax, GST and ROC professional with 20+ years of experience.
The National Savings Certificate looks like a simple 5-year deposit, and the maturity number is easy enough. What almost every calculator online skips is the interesting part: how the interest builds year by year, and the quiet Section 80C trick where the interest you earn each year earns you a fresh tax deduction the next year. This tool shows both, at the current 7.7% rate. It's an educational estimate. For your own tax return, a chartered accountant is the right person to confirm the numbers.
Minimum ₹1,000, in multiples of ₹100. There is no maximum.
7.7% for the Jul-Sep 2026 quarter, set by the Ministry of Finance. Editable, and locked for your full 5 years once you buy.
Maturity amount (after 5 years)
₹2,89,807
- Total interest
- ₹89,807
- Interest reinvested, years 1 to 4 (80C-eligible)
- ₹69,087
- Year-5 interest (taxable, not 80C)
- ₹20,720
- You invest
- ₹2,00,000
Year by year
| Year | Opening | Interest | Closing | 80C on interest? |
|---|---|---|---|---|
| 1 | ₹2,00,000 | ₹15,400 | ₹2,15,400 | Yes (reinvested) |
| 2 | ₹2,15,400 | ₹16,586 | ₹2,31,986 | Yes (reinvested) |
| 3 | ₹2,31,986 | ₹17,863 | ₹2,49,849 | Yes (reinvested) |
| 4 | ₹2,49,849 | ₹19,238 | ₹2,69,087 | Yes (reinvested) |
| 5 | ₹2,69,087 | ₹20,720 | ₹2,89,807 | No (paid out) |
NSC compounds once a year and pays the whole amount at maturity, so the formula is simply your investment times (1 plus the rate) to the power of 5. The interest from years 1 to 4 is treated as reinvested, so each of those amounts can be claimed again under Section 80C the following year, within the ₹1.5 lakh limit. The year-5 interest is paid out instead, so it isn't 80C-eligible and is fully taxable. NSC deducts no TDS, so you report the interest yourself each year.
How is NSC interest calculated?
NSC interest is compounded once a year and paid in full at maturity, so the maturity amount is your investment times (1 plus the rate) to the power of 5. Written out, that's A = P × (1 + r/100)⁵. At the current 7.7% rate, ₹1,000 becomes ₹1,449 after 5 years. The interest never leaves the certificate along the way, it just compounds, which is why the final year earns the most.
The rate matters, and it moves. The Ministry of Finance resets small-savings rates every quarter, and NSC is 7.7% for the July to September 2026 quarter. But the day you buy, your rate locks for the full 5 years, so a later cut or rise doesn't touch your certificate. Here's how a ₹2 lakh investment grows, year by year:
| Year | Opening | Interest at 7.7% | Closing |
|---|---|---|---|
| 1 | ₹2,00,000 | ₹15,400 | ₹2,15,400 |
| 2 | ₹2,15,400 | ₹16,586 | ₹2,31,986 |
| 3 | ₹2,31,986 | ₹17,863 | ₹2,49,849 |
| 4 | ₹2,49,849 | ₹19,238 | ₹2,69,087 |
| 5 | ₹2,69,087 | ₹20,720 | ₹2,89,807 |
The year-5 interest of ₹20,720 is larger than the year-1 interest of ₹15,400 on the same certificate, purely because it's earned on a bigger balance. Total interest over the 5 years is ₹89,807.
The Section 80C twist most people miss
In NSC, the interest you earn in years 1 to 4 is treated as reinvested, so each year's interest can be claimed again under Section 80C the following year, while the final year's interest cannot. Your original investment gets an 80C deduction in the year you buy. Then the scheme quietly hands you four more.
Follow the ₹2 lakh example. In year 1 the certificate earns ₹15,400, which stays inside and is deemed reinvested, so you can claim ₹15,400 under 80C in year 2, alongside any other 80C investments, within the ₹1.5 lakh limit. The same happens for years 2, 3, and 4. Add those four years up and it's ₹69,087 of interest that doubles as fresh 80C deductions. The year-5 interest of ₹20,720 is different: it's paid out to you at maturity, not reinvested, so it gets no 80C break and is fully taxable. The calculator's table flags exactly which years qualify, a detail no ranking tool spells out with real numbers.
Is NSC interest taxable?
NSC interest is taxable at your income-tax slab rate as income from other sources, but the post office deducts no TDS on it. Because there's no tax deducted at source, it's on you to declare the interest and pay the tax. Many people forget, then get a surprise at maturity.
The clean way to handle it pairs with the 80C point above. Report the interest each year on an accrual basis as it's earned. For years 1 to 4, you also claim that same amount back under Section 80C, so the tax and the deduction usually cancel out. Only the year-5 interest, the ₹20,720 in our example, has no matching 80C claim, so that is the piece that's genuinely taxed. That yearly accrual method is more accurate than declaring the whole ₹89,807 in one lump at the end, which can push you into a higher slab in the maturity year.
Lock-in, minimum, and who can buy NSC
NSC is locked in for 5 years, takes a minimum of ₹1,000 in multiples of ₹100 with no upper limit, and is open to resident individuals, including minors through a guardian. It's a small, guaranteed, government-backed certificate, and the rules are strict in exchange for that certainty.
A few specifics worth knowing. The 5-year lock is real: you can break it early only on the death of the holder, a court order, or forfeiture by a pledgee. There's no maximum you can invest, though only ₹1.5 lakh a year counts toward 80C. NRIs, Hindu Undivided Families, and companies can't buy NSC, only resident individuals can. And the older 10-year NSC has been discontinued since 2015, so the only version on sale today is the 5-year VIII Issue.
What this calculator does not do
It computes the maturity and the year-by-year interest at the rate you enter. It does not file your tax or confirm your exact 80C position, which depends on your other 80C investments and whether you're on the old or new tax regime, since the new regime does not allow 80C at all. It shows the gross interest, not your after-tax return, because that turns on your slab. And it assumes you hold to the full 5 years. For how NSC fits your own tax planning, a chartered accountant is the right person to ask. This is general education, not tax advice.
Pair this calculator with the guide
For how NSC compares with its post-office cousin, read the NSC vs KVP guide. Because both are Section 80C options, the Section 80C explainer shows the full ₹1.5 lakh menu they share, and the tax-free Public Provident Fund guide is the usual alternative, since PPF interest is exempt while NSC interest is taxed.
Frequently asked questions
How is NSC interest calculated?
NSC interest is compounded once a year and paid in full at maturity, so the maturity amount is your investment times (1 plus the rate) to the power of 5. At the current 7.7% rate, ₹1,000 grows to ₹1,449 over 5 years, a ₹449 gain. On a ₹2 lakh investment, the maturity works out to about ₹2,89,807, of which ₹89,807 is interest. The interest isn't paid out yearly, it stays in the certificate and compounds, which is why the last year earns the most.
What is the current NSC interest rate?
The current NSC interest rate is 7.7% a year, and it was left unchanged for the July to September 2026 quarter, per the Ministry of Finance small-savings notification. It has held at 7.7% for several quarters now. The rate is reset every quarter, but the rate that applies to your certificate is locked in on the day you buy and stays fixed for all 5 years, even if the quarterly rate later changes.
Is NSC interest eligible for Section 80C?
Yes, and this is the part most people miss. Your NSC investment qualifies for the Section 80C deduction, up to the ₹1.5 lakh limit. On top of that, the interest earned in years 1 to 4 is treated as reinvested, so each year's interest can be claimed again under 80C the following year, on an accrual basis. The one exception is the fifth and final year: that interest is paid out to you rather than reinvested, so it does not qualify for 80C and is fully taxable.
Is NSC interest taxable, and is there TDS?
NSC interest is taxable at your income-tax slab rate as income from other sources, but there is no TDS. The post office does not deduct any tax at source on NSC, so the responsibility is on you to declare the interest and pay the tax yourself. The cleanest way is to report the interest each year on an accrual basis, since for years 1 to 4 you also claim that same amount back under Section 80C, which usually cancels the tax on it.
What is the NSC maturity period, and can you withdraw early?
NSC has a fixed maturity of 5 years, and it generally cannot be broken before then. Premature withdrawal is allowed only in specific cases: the death of the holder, a court order, or forfeiture by a pledgee who is a gazetted government officer. Outside those situations, your money is locked for the full 5 years. That lock-in is the trade-off for the guaranteed government-backed return.
What is the minimum and maximum NSC investment?
The minimum NSC investment is ₹1,000, and after that you can invest in multiples of ₹100. There is no maximum limit, so you can put in as much as you like. The catch on the tax side is that only ₹1.5 lakh a year counts toward the Section 80C deduction, so investing more than that still earns interest but gives no extra tax break in that year.
Sources
- National Savings Institute, Ministry of Finance, small-savings interest rates (NSC 7.7%, valid through 30 Sep 2026), nsiindia.gov.in
- National Savings Institute, National Savings Certificate (VIII Issue) Rules, 1989, nsiindia.gov.in
- India Post, Department of Posts, National Savings Certificate scheme details, indiapost.gov.in
- Income Tax Department of India, Section 80C and taxation of NSC interest, incometax.gov.in