FD Calculator (Fixed Deposit)
Calculate the maturity amount and interest earned on a fixed deposit with quarterly, half-yearly or yearly compounding.
India-specific calculator. It uses Indian rules, rates and rupee amounts, and the currency selector is switched off on this page.
The Fixed Deposit calculator estimates how much your bank FD will be worth at maturity. You enter the deposit amount, the bank's interest rate and the tenure, and it returns your maturity amount, the total interest earned and the effective annual yield — everything you need to compare deposits across banks before locking in your money.
How to use the FD calculator
- Enter the deposit amount you plan to put in.
- Add the annual interest rate your bank offers (senior citizens usually get 0.25–0.75% extra).
- Set the tenure in years.
- Choose the interest option — most cumulative FDs compound quarterly, while non-cumulative FDs pay interest out.
- Press Calculate FD to view the maturity amount and effective yield.
FD formula
Where P is the deposit, r is the annual rate (as a decimal), n is the compounding frequency per year and t is the tenure in years. For non-cumulative (interest paid out) deposits the calculator uses simple interest: interest = P x r x t.
Worked example
₹1,00,000 for 5 years at 7% p.a., compounded quarterly
M = 1,00,000 x (1 + 0.07/4)20 ≈ ₹1,41,477.
Total interest ≈ ₹41,477, and the effective annual yield is about 7.19%.
Interest on FDs is taxable, and banks usually deduct TDS above the tax-free threshold unless you submit Form 15G/15H. The figure above is before tax.
Who should use this calculator
- Savers parking a lump sum for a known period and wanting the exact maturity figure rather than a rough bank estimate.
- Retirees and senior citizens planning interest income, where the payout option matters as much as the rate.
- Anyone comparing fixed deposits across banks — a 0.25% difference compounds over five years.
- Investors deciding how much of their money should sit in a guaranteed product rather than market-linked funds.
Common mistakes to avoid
- Comparing rates without comparing compounding. Two banks quoting 7% can pay different amounts if one compounds quarterly and the other annually. The effective yield is the number to compare.
- Forgetting that FD interest is taxed. Interest is added to your income and taxed at your slab. For many savers the post-tax return is close to inflation.
- Not planning for TDS. Banks deduct tax when interest crosses the threshold. If your total income is below the taxable limit, submit Form 15G or 15H to avoid the deduction.
- Breaking a deposit early without checking the penalty. Premature withdrawal usually costs 0.5–1% of the applicable rate, which can wipe out months of interest.
- Locking everything into one long deposit. Laddering — splitting money across 1, 2 and 3-year deposits — gives you regular access without breaking a single large deposit.
Why the effective yield is the honest number
A bank quoting 7% per year on a quarterly-compounded deposit is not really paying 7%. Each quarter the interest is added to your principal and starts earning interest itself, so the true annual return is about 7.19%. Over ten years that small difference is worth a noticeable amount on a large deposit.
This is also why non-cumulative deposits show a lower maturity value: the interest is paid out to you instead of being reinvested, so it never compounds. If you do not need the income, a cumulative deposit will almost always leave you with more at maturity.
FD terms explained
- Cumulative FD
- Interest is reinvested and paid at maturity along with the principal. This is the version most calculators assume.
- Non-cumulative FD
- Interest is paid out monthly, quarterly or yearly, so nothing compounds but you get regular income.
- Effective yield
- The true annual return after accounting for how often interest is compounded — the fair way to compare two deposits.
- Premature withdrawal
- Closing a deposit before maturity. Banks usually apply a rate 0.5–1% lower than the contracted rate.
- Tax deducted at source
- Tax the bank deducts on your interest and deposits with the government against your PAN.
Frequently asked questions
What is a Fixed Deposit (FD)?
A Fixed Deposit is a savings instrument offered by banks and post offices where you deposit a lump sum for a fixed tenure at a fixed interest rate. At maturity you receive your principal plus the interest earned. FDs are considered low-risk because the return is locked in at the time of deposit.
How is FD interest compounded?
Most banks in India compound fixed deposit interest every quarter. The quarterly compounding formula is M = P x (1 + r/4)^(4 x t), where r is the annual rate and t is the tenure in years. If you choose the "interest paid out" option (non-cumulative FD), you receive interest periodically and earn simple interest instead.
What is the effective yield of an FD?
The effective yield is the real annual return you earn after accounting for quarterly (or other) compounding within the year. For example, an FD at 7% p.a. compounded quarterly has an effective yield of about 7.19%, because the quarterly interest itself starts earning interest.
Are FD returns taxable?
The interest earned on FDs is fully taxable under your income tax slab. Banks may deduct TDS (Tax Deducted at Source) if your interest income crosses the threshold, unless you have submitted Form 15G or 15H. The maturity amount shown here is before tax.