# Kisan Vikas Patra Calculator

### Total Amount Investing

Enter value between 1000 to 50 lakhs
1000 50 lakh
KVP Annual Interest Rate
7.2 %
Time Period
10 Years
Amount Invested
17,761
Maturity Amount
₹ 9,57,568

# Kisan Vikas Patra (KVP) Calculator

## How Does the KVP Interest Rate Calculator Work?

The KVP calculator works on the principle of compounding, where the formula used to compute returns is the same as the formula for compound interest.

A = P (1 + r/n)^(nt)

Here,

 Parameters Description A Maturity Amount P Principal or the Initial Amount r Rate of Interest t Time Period of Investment n Number of Times Interest is Compounded within the Time Period

Before delving into various calculation metrics applicable in a KVP calculator, consider the following example. This will make it easier for you to understand the metrics mentioned later in this section.

Example: Mr A invested an amount of ₹1 lakhs in KVP on 18th August 2021.

An individual needs to input values corresponding to the following calculation metrics in the KVP calculator:

 Calculation Metrics Details Investment Amount Investment amount refers to the amount that an individual invests in this scheme. As per the above example, the investment amount will be ₹1 lakhs. Investment Date Investment date can be defined as the date on which an individual carries out the investment in the KVP scheme. In the above example, the investment date is '18/08/2021'.

After entering both data into the specified fields of a KVP calculator, the maturity amount is computed. Thereafter, a user is presented with the maturity amount, maturity date, and total amount of interest.

Note that in the case of KVP, the interest is compounded annually. Presently, the rate of interest on offer is 6.9%. There is no fixed time period for KVP. With this present rate of interest, the maturity date will be 124 months.

With these basics out of our way, let’s now discuss how to calculate KVP interest.

## Rate of Interest Table for KVP Scheme

The rate of interest for this scheme varies periodically depending on the updates by the Ministry of Finance. The current rate of interest applicable to this scheme is 6.9% p.a., which can double one’s investment in 124 months.

The table below indicates the fluctuations in this interest rate over a period of time:

 Duration Rate of Interest Q1 FY 2020-2021 6.90% Q4 FY 2019-2020 7.60% Q2 FY 2019–2020 7.60% Q1 FY 2019–2020 7.70% Q4 FY 2018-2019 7.70% Q3 FY 2018-2019 7.70% Q2 FY 2018-2019 7.30% Q1 FY 2018-2019 7.30%

Therefore, as the current interest rate is 6.9%, a KVP interest rate calculator will consider this rate for calculating one’s earned interest in Q1 FY 2020-2021.

## How to Calculate Premature Closure Value for KVP?

To close a Kisan Vikas Patra (KVP) before maturity, you need to first calculate the value of your investment. The maturity period of KVP is up to 9 years and 7 months, and you can withdraw the principal amount and the interest. However, you must have held the investment for at least 2 years and 6 months for premature withdrawal.

The table presents the premature closure value of an account opened on or after the notification date with an initial deposit of ₹1,000.

 Duration Between Account Opening Date and Premature Closure Date Amount Payable (with Taxes) 2.5 years to less than 3 years ₹1173 3 years to less than 3.5 years ₹1211 3.5 years to less than 4 years ₹1251 4 years to less than 4.5 years ₹1291 4.5 years to less than 5 years ₹1333 5 years to less than 5.5 years ₹1377 5.5 years to less than 6 years ₹1421 6 years to less than 6.5 years ₹1467