FD Calculator

What is an FD Calculator?

A fixed deposit (FD) calculator estimates how much a bank term deposit will be worth on maturity. You enter the amount deposited, the annual interest rate quoted by the bank, the tenure and how often interest is compounded. The calculator returns the maturity amount, the interest earned and the effective annual yield.

Because the rate on a standard FD is fixed when you open it, the maturity value is known in advance, which is what makes the calculation exact rather than a projection. This tool accepts deposits from ₹1,000 to ₹1 crore, rates from 1% to 15% and whole-year tenures from 1 to 10 years.

FD Formula

For a cumulative FD (interest is reinvested until maturity), the calculator uses the standard compound interest formula:

A = P × (1 + r/n)n × t

• A = maturity amount (principal + interest)
• P = principal deposited
• r = annual interest rate as a decimal (7% → 0.07)
• n = compounding periods per year: 1 (yearly), 2 (half-yearly), 4 (quarterly) or 12 (monthly)
• t = tenure in years

Interest earned is A − P. Quarterly compounding is the calculator's default because it is the convention many Indian banks use for cumulative deposits; check your bank's terms and pick the matching frequency. The full method and assumptions are on the FD methodology page.

Worked Example

Take a deposit of ₹5,00,000 for 5 years at 7% a year, compounded quarterly:

• P = 5,00,000
• r/n = 0.07 / 4 = 0.0175
• n × t = 4 × 5 = 20 quarters
• A = 5,00,000 × (1.0175)²⁰ ≈ 5,00,000 × 1.41478 ≈ ₹7,07,389

Interest earned is about ₹2,07,389. With the same rate and tenure, yearly compounding gives ₹7,01,276, half-yearly ₹7,05,299 and monthly ₹7,08,813. Enter these inputs above to reproduce the figures.

FD maturity table: ₹1 lakh at 7% by compounding frequency

Maturity value of a ₹1,00,000 deposit at a constant 7% a year, computed with the same function the calculator uses:

Pre-tax, illustrative figures. Actual maturity depends on the rate, compounding convention and day-count method your bank applies.

Cumulative vs non-cumulative (payout) FDs

In a cumulative FD, interest is added back to the deposit and earns interest itself until maturity. That is what this calculator models. In a non-cumulative FD, interest is paid out to your account at a chosen interval (often monthly or quarterly) and does not compound inside the deposit.

For the ₹5,00,000 at 7% example, a quarterly payout would be ₹8,750 per quarter (5,00,000 × 0.07 ÷ 4), or ₹1,75,000 over five years, and you get back the original ₹5,00,000 at the end. The cumulative version earns about ₹32,389 more because interest compounds. Payout FDs suit people who need regular income; this calculator's maturity figure does not apply to them.

Effective annual yield vs nominal rate

The rate a bank quotes (7% p.a.) is the nominal rate. The effective annual yield is what you actually earn in a year once compounding is included: (1 + r/n)n − 1. At 7%, it works out to 7.00% with yearly compounding, 7.12% half-yearly, 7.19% quarterly and 7.23% monthly. The calculator shows this as "Effective Annual Rate", which makes it easier to compare deposits that compound at different frequencies.

Tax on FD interest

As of October 2026, the Income-tax Act, 2025 applies from 1 April 2026 and FD rules carry over from the 1961 Act largely unchanged:

• Taxed at your slab rate. FD interest is added to your income and taxed at your applicable slab under whichever regime you choose. Interest is generally taxable each year as it accrues, even on a cumulative FD that pays out only at maturity.
• TDS threshold. Since 1 April 2025, banks deduct TDS (10% where PAN is furnished) only when your total interest from that bank exceeds ₹50,000 in the year, or ₹1,00,000 for resident senior citizens. The Income Tax Department has confirmed these thresholds are unchanged under the new Act. TDS is not the final tax; interest below the threshold is still taxable.
• Form 121. From tax year 2026-27, Form 121 replaces Forms 15G and 15H. Eligible resident individuals whose tax on estimated total income is nil can submit it to the bank to avoid TDS.
• Tax-saver FD. A 5-year term deposit with a scheduled bank under the notified scheme qualifies for a deduction within the ₹1.5 lakh overall limit (formerly Section 80C, now Section 123 read with Schedule XV). The deduction is available only under the old tax regime, the deposit cannot be withdrawn before five years, and the interest remains taxable.

Post-tax example: on the ₹2,07,389 interest from the worked example, tax at a 30% slab is about ₹62,217, leaving roughly ₹1,45,172; at a 20% slab, tax is about ₹41,478, leaving ₹1,65,911 (surcharge and cess ignored). Year-wise accrued interest rises from about ₹35,930 in year 1 to ₹47,424 in year 5. If this is your only deposit with that bank, each year stays below ₹50,000, so no TDS is deducted, but the interest is still taxable.

Deposit insurance (DICGC)

As of October 2026, the Deposit Insurance and Credit Guarantee Corporation (DICGC), a wholly owned subsidiary of the RBI, insures deposits in insured banks up to ₹5,00,000 per depositor per bank, covering principal and interest together, for deposits held in the same right and capacity. Deposits with non-bank companies are not covered by DICGC.

Premature withdrawal

Most regular FDs can be broken early, but banks usually pay a lower rate than the one originally contracted, and the penalty is set by each bank's own deposit policy. Check the premature-withdrawal terms before opening the deposit. Tax-saver FDs cannot be withdrawn before five years.

What the calculator does NOT model

• Tax, TDS, surcharge or cess: all figures are pre-tax.
• Premature withdrawal penalties or rate changes on renewal.
• Payout (non-cumulative) FDs and their periodic interest.
• Tenures in months or days, and bank-specific day-count or rounding rules.
• Inflation: the maturity value is in nominal rupees, not today's purchasing power.

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