NSC Calculator — National Savings Certificate
Calculate NSC maturity amount with year-by-year interest accrual, analyse Section 80C tax benefits across all 5 years, and compare NSC vs PPF vs tax-saving FD. Updated with current 7.7% NSC rate for FY 2025-26.
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How to Use This Calculator
NSC Maturity tab
Enter your investment amount (e.g. ₹1,50,000) and the NSC interest rate (default 7.7% p.a.). The calculator computes the maturity amount after 5 years with interest compounded annually but paid only at maturity. A year-by-year interest accrual table shows how your money grows each year.
80C Benefit Analysis tab
Enter your NSC investment and income tax slab. The calculator breaks down the Section 80C treatment year by year: your initial investment qualifies for 80C in year 1, accrued interest (deemed reinvested) qualifies in years 2-4, and only the final year's accrued interest is taxable. See total tax savings across all years and the net tax benefit after accounting for year 5 tax.
NSC vs PPF vs Tax FD tab
Compare three popular tax-saving instruments side by side for the same ₹1.5L (or any amount) over 5 years. NSC at 7.7%, PPF at 7.1% (tax-free EEE status), and a tax-saving FD at ~7% (interest fully taxable). The calculator shows maturity value, tax impact, and post-tax returns for each option.
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The Formula
NSC uses simple annual compounding with interest paid only at maturity:
A = P × (1 + r)n
Where:
P = Principal (investment amount)
r = Annual interest rate (e.g. 7.7% = 0.077)
n = Tenure in years (5 years for NSC VIII)
Year-by-Year Interest Accrual:
Interesty = Balancey-1 × r
Balancey = Balancey-1 + Interesty
Example (₹1,50,000 at 7.7%):
Year 1: ₹1,50,000 × 0.077 = ₹11,550 → Balance: ₹1,61,550
Year 2: ₹1,61,550 × 0.077 = ₹12,439 → Balance: ₹1,73,989
Year 3: ₹1,73,989 × 0.077 = ₹13,397 → Balance: ₹1,87,386
Year 4: ₹1,87,386 × 0.077 = ₹14,429 → Balance: ₹2,01,815
Year 5: ₹2,01,815 × 0.077 = ₹15,540 → Maturity: ₹2,17,355
80C Treatment:
Year 1: Investment (₹1,50,000) → 80C eligible
Years 2-4: Accrued interest (deemed reinvested) → 80C eligible
Year 5: Accrued interest (paid at maturity) → Taxable at slab rate
Interest is compounded annually (added to principal each year) but the entire accumulated amount is paid only at maturity after 5 years. No intermediate interest payments are made.
Example
Ravi — Salaried professional, invests ₹1.5L in NSC for tax saving
Ravi (35) is a government employee in the 30% tax bracket. He wants to maximise his Section 80C deductions and is comparing NSC with other tax-saving options. He invests ₹1,50,000 in NSC at the current rate of 7.7%.
Step 1: Maturity calculation
Step 2: 80C tax benefit analysis (30% slab)
Step 3: Tax savings
Ravi gets ₹2,17,828 at maturity and saves ₹51,883 in taxes over 5 years. His effective post-tax return is significantly better than a tax-saving FD where all interest is taxed annually. The only downside: no premature withdrawal is allowed, so he needs to be sure he won't need this money for 5 years.