Kisan Vikas Patra (KVP) Calculator
Kisan Vikas Patra or KVP calculator is an effective tool for individuals willing to determine the maturity amount prior to investing. There are many such calculators available on different portals on the internet, which are also extremely easy to use.
This article would provide you with insights into several aspects of a KVP calculator. Scroll through!
How Does the KVP Maturity Calculator Work?
The KVP calculator works on the principal of compounding where the formula used to compute returns is the same as the formula of compound interest.
A = P (1 + r/n)^(nt)
Principal or the Initial Amount
Rate of Interest
Time Period of Investment
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:
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 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 the data into the specified fields of a KVP calculator, the maturity amount is computed. Thereafter, a user would be presented with the maturity amount, maturity date, and the total amount of interest.
Note that in 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 prevalent, the maturity date will be of 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
Depending on the updates by the Ministry of Finance, the rate of interest for this scheme varies periodically. The current rate of interest applicable to this scheme is 6.9% p.a., which can even double one’s investment in a period of 124 months.
The table below indicates the fluctuations in this interest rate over a period of time:
Rate of Interest
Q1 FY 2020-2021
Q4 FY 2019-2020
Q2 FY 2019–2020
Q1 FY 2019–2020
Q4 FY 2018-2019
Q3 FY 2018-2019
Q2 FY 2018-2019
Q1 FY 2018-2019
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.
By now, you must have gained a fundamental understanding of the KVP calculator and its various aspects. So, if you are looking to invest in this scheme, go ahead and utilise this tool to your benefit.