FD Calculator
Work out the maturity value and interest earned on a bank fixed deposit (FD), based on the principal amount, interest rate, tenure and compounding frequency your bank applies.
Fill in the form and select "Calculate" to see your results here.
What is the FD Calculator?
A fixed deposit (FD) is a lump-sum investment held with a bank or NBFC for a fixed tenure at a fixed interest rate. This calculator estimates the maturity value of your deposit and the total interest it earns, based on the principal amount, the annual interest rate your bank offers, the tenure, and how often the bank compounds interest — quarterly, monthly, half-yearly, or annually.
How bank fixed deposits work
When you open an FD, you lock in a principal amount at a fixed interest rate for a chosen tenure, typically ranging from 7 days to 10 years. Unlike a savings account, the rate doesn't change during the tenure (except for special floating-rate FDs, which are uncommon). Most Indian banks compound FD interest quarterly by default, crediting it to the deposit's balance every three months so that subsequent quarters earn interest on the accumulated interest as well as the original principal. Some banks and NBFCs offer monthly or annual compounding on select schemes, so the frequency your bank actually uses affects the final maturity value even at the same quoted rate.
How to use this calculator
- Enter the principal amount you plan to deposit.
- Enter the annual interest rate your bank has quoted for the tenure you're considering.
- Enter the tenure and choose the unit that matches your FD receipt — years, months, or days (for short-term deposits, as low as 7 days).
- Select the compounding frequency stated in your bank's FD terms (quarterly is the norm for most Indian banks).
- Select "Calculate FD Maturity" to see the maturity value and total interest earned.
Formula
The compounding frequency (n) matters because a higher n means interest is credited and starts earning further interest more often, producing a slightly higher maturity value than the same nominal rate compounded less frequently.
Example
Consider a deposit of ₹1,00,000 at 7% per annum for 5 years, compounded quarterly. Here P = ₹1,00,000, r = 0.07, n = 4, and t = 5, so n × t = 20 quarters and the per-quarter rate is r/n = 0.0175. The maturity value is ₹1,00,000 × (1.0175)^20 ≈ ₹1,41,478. Total interest earned works out to roughly ₹41,478 over the 5-year tenure — noticeably more than the ₹35,000 you'd get from simple (non-compounding) interest at the same rate, because each quarter's interest itself starts earning interest for the remaining tenure.
Factors that affect FD returns
- Interest rate. Even a small difference in the quoted rate compounds meaningfully over longer tenures — compare rates across banks before committing.
- Tenure. Longer tenures let compounding work for more periods, but your money is locked in for longer and rates for very long tenures aren't always the highest on offer.
- Compounding frequency. Quarterly compounding is standard at most Indian banks, but monthly compounding on the same nominal rate produces a marginally higher maturity value.
- Premature withdrawal penalties. Breaking an FD before maturity usually reduces the effective interest rate and may attract a penalty (commonly 0.5-1%), so the actual amount received on early withdrawal is typically lower than this calculator's full-tenure estimate.
- Taxation of interest. FD interest is added to your total income and taxed at your income tax slab rate; it is not a tax-free return, so your post-tax return will be lower than the maturity value shown here.
Frequently Asked Questions
Yes. Interest earned on a fixed deposit is fully taxable as "Income from Other Sources" at your applicable income tax slab rate — it is not exempt. Banks also deduct TDS if your total interest income from that bank exceeds the applicable threshold in a financial year (a higher threshold applies for senior citizens).
Most banks allow premature withdrawal but apply a penalty, typically reducing the interest rate by 0.5% to 1% from the rate applicable for the period the deposit was actually held (not the original contracted rate). Some tax-saving FDs with a 5-year lock-in do not permit premature withdrawal at all. Check your bank's specific terms before opening the deposit.
No. Quarterly compounding is the most common convention among Indian banks, but some banks or specific FD schemes use monthly, half-yearly, or annual compounding instead. Check your bank's FD terms or interest certificate to confirm which frequency applies to your deposit, and select the matching option in this calculator.
Yes, most banks offer senior citizens an additional 0.25% to 0.75% per annum over the standard FD rate. Enter the senior citizen rate your bank has quoted in the interest rate field to see the maturity value at that higher rate.
No. This calculator shows the gross maturity value and interest before any tax or TDS deduction. Your actual post-tax return will be lower, since interest is taxed at your income tax slab rate.
Related calculators
Calculations are estimates based on the information entered and assume the interest rate and compounding frequency stay fixed for the full tenure. They do not account for premature withdrawal penalties, TDS, or income tax on the interest earned, and are not a substitute for your bank's official FD terms. See our full disclaimer.