Why is the KVP term 115 months?

Because that is how long doubling takes at 7.5%: ln(2) ÷ ln(1.075) = 9.584 years, or 115.0 months. The government fixes the promise at doubling and adjusts the term whenever the rate changes, which is why the number is not round.

Does my money really double?

Very nearly — the multiple works out to 1.99985 rather than exactly 2, because the term is published as a whole number of months. On ₹5,00,000 that is a shortfall of about ₹74. Before tax, it is a doubling for all practical purposes.

Is KVP interest tax-free?

No. It is taxable at your slab rate, and KVP does not qualify for any Section 80C deduction. After 30% tax the effective return is around 5.25% a year, at which doubling would take over thirteen years.

Should I choose KVP or NSC?

NSC usually, if you have Section 80C room. It currently pays more, matures in five years rather than nine and a half, and both the deposit and its reinvested interest qualify for the deduction. KVP's case is for large sums beyond the 80C limit, where the absence of a ceiling matters.

Can I withdraw early?

After two years and six months, at a reduced return that depends on when you exit. Before that, only in narrow circumstances such as the holder's death. Treat the money as committed for the full term.

Is there a maximum investment?

No. The minimum is ₹1,000 and there is no statutory ceiling, which is KVP's main structural advantage over PPF and Sukanya Samriddhi. Deposits above ₹10 lakh require additional documentation.

Investment · FINANCIAL TOOLS

Kisan Vikas Patra Calculator

See what a Kisan Vikas Patra matures to, and why its odd 115-month term is set the way it is.

Understand the calculation

Calculation logic, formula, example and guardrails behind the estimate.

How it works

One deposit compounds annually at the rate prevailing when the certificate is bought, over a term set in months. The term is the interesting part: it is chosen so that the multiple lands on exactly two.

At 7.5%, doubling takes ln(2) ÷ ln(1.075) = 9.584 years, which is 115.0 months. That is where the official term comes from. The scenario table above solves the same equation at other rates, so you can see the term the government would have to publish if the rate moved.

More detail

This also means the doubling is a consequence of arithmetic rather than a subsidy. KVP is not paying you more than its stated rate — it is simply quoting the same return as a duration instead of a percentage, which many people find easier to act on.

Because the term is not a whole number of years, the final row of the schedule covers seven months rather than twelve and earns proportionately less.

For the shorter alternative that also qualifies for 80C, see the NSC calculator.

To turn any doubling period back into an annual rate, use the CAGR calculator.

To compare against a bank deposit, try the fixed deposit calculator.

Formula

M = P × (1 + r)^(months ÷ 12); months to double = 12 × ln2 ÷ ln(1 + r)

The second expression is the one that sets the scheme's term. It is the rule of 72 done exactly rather than approximately — the rule would give 72 ÷ 7.5 = 9.6 years, against the true 9.584.

M: Value at maturity.
P: Amount invested.
r: Annual rate, fixed at purchase.
months: Term in months — 115 at the current rate.

Worked example

₹5,00,000 invested in Kisan Vikas Patra at the current 7.5%, held for the official 115-month term.

01Term in years115 ÷ 12 = 9.583 years
02Growth multiple1.075^9.583 = 1.99985
03Value at maturity₹9,99,926
04Interest earned₹4,99,926
05Months the arithmetic needs to double115.0

The multiple is 1.99985 rather than exactly 2 — the term is published as a whole number of months, so the doubling is right to within about ₹74 on ₹5 lakh. That the two independent published figures, 7.5% and 115 months, agree to four decimal places is a useful check that neither has been misquoted.

Important considerations

01
Doubling is a framing, not a bonus
A scheme that doubles your money in 115 months is paying 7.5% a year — no more and no less. The framing is genuinely useful for planning against a dated goal, but it is worth being clear that nothing extra is on offer. A fixed deposit at 7.5% compounded annually would do the same thing.
02
NSC is usually the better of the two
NSC pays a higher rate at present, has a shorter five-year term, and qualifies for Section 80C on both the deposit and its reinvested interest. KVP's advantages are the absence of a deposit ceiling and the longer locked rate. For most people with 80C room left, NSC wins on the comparison.
03
Tax makes the real doubling much slower
The interest is taxable annually at your slab rate. For a 30%-bracket investor the after-tax rate is about 5.25%, and doubling at that rate takes over thirteen years rather than nine and a half. The scheme's name describes the pre-tax outcome only.

Limitations

Interest is taxable at your slab rate, and this calculator reports pre-tax figures only. After 30% tax the effective doubling takes considerably longer.
KVP does not qualify for Section 80C, unlike NSC. Comparing the two on rate alone therefore favours KVP more than it should for anyone with room under the 80C limit.
Premature encashment is permitted after two years and six months, at a reduced return that is not modelled here.
The rate and term are both fixed at purchase. A certificate bought in a different quarter carries that quarter's figures for its whole life.

Frequently asked questions

Common questions about the kisan vikas patra calculator and the assumptions behind it.

Next useful checks

Move from this result to the next decision without hunting through the full calculator list.

PPF CalculatorCompare tax-free small-savings compounding.Fixed Deposit CalculatorCompare government schemes with bank-deposit assumptions.Recurring Deposit CalculatorModel smaller monthly deposits instead of lump sums.

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Disclaimer

This calculator is provided for general information and planning only. It is not investment, tax or legal advice, and it does not take your personal circumstances into account. Outputs are estimates based on the assumptions stated on this page, exclude taxes and charges unless said otherwise, and market-linked returns are not guaranteed — the value of investments can fall as well as rise. Lending terms, rates and eligibility are decided by the lender. For advice on your own situation, speak to a qualified professional, several of whom you can consult on Finvestalk.