FD Calculator
This FD calculator works out the maturity value of a bank fixed deposit using quarterly compounding — the convention almost every Indian bank and post office uses. Enter your deposit amount, the interest rate quoted and the tenure, and see exactly what the FD will be worth at maturity and how much of that is interest. It is the fastest way to compare an FD offer against other guaranteed-return options before you lock your money in.
The lump sum you are placing in the fixed deposit. Most banks require a minimum of ₹1,000–₹10,000.
The FD rate your bank quotes. Regular bank FDs typically pay 6.5–7.5%; senior citizens usually get 0.5% extra; small finance banks pay more.
How long the deposit is locked in. FDs commonly range from 7 days to 10 years; longer tenures usually pay a higher rate, up to a point.
Maturity value
₹7,07,389
What you'll receive in one lump sum when the FD matures — e.g. ₹5,00,000 at 7% for 5 years matures to about ₹7,07,389.
The pure gain on your deposit — remember this is taxable at your income slab rate in the year it's credited.
The lump sum you're placing today, shown for comparison against the maturity value and interest earned.
How to use this fd calculator
- 1Deposit amount: the lump sum you are placing today. Some banks offer slightly better rates above certain thresholds (e.g. ₹2 crore+ counts as a 'bulk deposit' with different pricing) — check your bank's slab.
- 2Interest rate: use the exact rate on your bank's current FD card for your chosen tenure — rates vary by tenure bucket, not just by bank, so a 3-year FD and a 5-year FD at the same bank often pay differently.
- 3Tenure: shorter FDs (under 1 year) usually pay less than medium-term FDs (1–5 years); very long FDs (5–10 years) sometimes pay slightly less again. Check the full rate card rather than assuming longer always means higher.
- 4Compare the maturity value here against other FDs and against post-tax returns on debt mutual funds or RDs for the same tenure before committing — FDs lock your money in with an early-withdrawal penalty.
Understanding your results
The maturity value is what you receive on the FD's maturity date, in one lump sum. Interest earned is the pure gain — remember it is taxable in the year it is credited or paid (not just at maturity, if the FD spans multiple financial years, banks credit and tax it annually under most schemes). If your total interest income across all FDs exceeds ₹40,000 in a year (₹50,000 for senior citizens), the bank deducts TDS at 10% unless you submit Form 15G/15H. Compare the after-tax maturity value against inflation: a 7% FD taxed at a 30% slab nets under 5% — barely ahead of typical inflation, which is why FDs suit safety and short-term goals better than long-term wealth building.
The formula
A = P × (1 + r/4)^(4×t)A is the maturity value, P the deposit amount, r the annual interest rate as a decimal, and t the tenure in years. Indian FDs compound quarterly by convention (four times a year), which is why the rate is divided by 4 and the exponent is multiplied by 4 — each quarter, interest is added to the balance and the next quarter's interest is calculated on that larger amount. A handful of banks and post-office schemes compound differently (e.g. cumulative vs non-cumulative FDs pay out interest instead of compounding it), so always check your specific scheme's compounding frequency.
A worked example
₹5,00,000 deposited at 7% for 5 years, compounded quarterly: the maturity value works out to ₹7,07,389 — interest of ₹2,07,389 on the original deposit. Extend the same FD to 10 years and the maturity value becomes ₹10,00,799, almost exactly doubling the principal, closely matching the Rule of 72 (72 ÷ 7 ≈ 10.3 years to double). A senior citizen getting a 0.5% higher rate (7.5%) on the same ₹5,00,000 for 5 years would instead mature at about ₹7,19,946 — worth checking if a family member qualifies for the senior-citizen rate on your behalf.
Notes for the UK, US and India
In India, FD interest is fully taxable at your income slab rate — there is no indexation benefit as with some other instruments. Tax-saving FDs (5-year lock-in) qualify for an 80C deduction on the principal, but the interest is still taxable. Senior Citizen Savings Scheme and post-office FDs often beat bank FD rates with sovereign backing. Outside India, the nearest equivalents are UK/US fixed-term savings bonds and CDs (Certificates of Deposit) — the same locked-rate, guaranteed-return concept, though compounding conventions and tax treatment differ by country, so use this calculator for the maths and check local tax rules separately.
Frequently asked questions
How is FD interest calculated?+
Using A = P(1 + r/4)^(4t) for the common quarterly-compounding convention: principal times (1 + quarterly rate) to the power of total quarters. ₹5,00,000 at 7% for 5 years matures at about ₹7,07,389.
Is FD interest taxable every year or only at maturity?+
For cumulative FDs spanning multiple financial years, most banks credit and report interest annually (even though you receive it only at maturity), and it is taxed in the year it accrues — not deferred to maturity. Check your bank's TDS certificate (Form 16A) each year.
What is the difference between cumulative and non-cumulative FD?+
A cumulative FD reinvests interest each quarter and pays everything at maturity (this calculator models this type). A non-cumulative FD pays interest out monthly, quarterly or annually as income, with no compounding — better for those who need regular income rather than a lump sum.
Can I withdraw an FD before maturity?+
Yes, but premature withdrawal usually costs a penalty of 0.5–1% on the interest rate, and you earn interest only for the period actually held, at the rate applicable to that shorter tenure — not your original quoted rate.
FD or debt mutual fund — which is better?+
FDs offer a guaranteed, fixed rate with deposit insurance up to ₹5 lakh per bank; debt funds have market-linked, variable returns with no guarantee but potentially better post-tax outcomes for higher tax brackets, especially over 3+ years. Choose FDs for certainty and short horizons, debt funds for tax efficiency over longer ones.