FD Calculator
Updated · By the CalculatorDash editorial team · How we check our maths
Quick answer
FD maturity = P × (1 + r ÷ n)^(n × t), where r is the annual rate, n the number of compounding periods per year and t the years. Most Indian banks compound quarterly, so ₹1,00,000 at 7% for 5 years matures to about ₹1,41,478.
How this calculator works
A fixed deposit pays a guaranteed rate for a fixed term. Because interest is compounded, usually every quarter in India, the effective yield is slightly higher than the headline rate. This calculator shows both the maturity value and the effective annual yield so you can compare deposits with different compounding.
Senior citizens commonly get an extra 0.25–0.50% from many banks. Interest is added to your taxable income, and banks deduct TDS above a threshold unless you submit the relevant form.
The formula
- Maturity
- P × (1 + r ÷ n)^(n × t)
- Effective yield
- (1 + r ÷ n)^n − 1
Worked example
₹1,00,000 at 7% compounded quarterly for 5 years: 1,00,000 × (1 + 0.07 ÷ 4)^20 ≈ ₹1,41,478, so you earn about ₹41,478 in interest. The effective yield is 7.19% a year.
Tips
- 01Split a large deposit into several FDs (laddering) so you can break one without losing interest on all of it.
- 02Compare the post-tax return with debt mutual funds or government savings schemes.
Frequently asked questions
How is FD interest calculated?
Most banks use compound interest: maturity = P × (1 + r ÷ n)^(n × t), with quarterly compounding (n = 4) being the most common in India.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS once interest crosses the applicable threshold.
What is the difference between cumulative and non-cumulative FDs?
A cumulative FD reinvests interest and pays everything at maturity, which this calculator models. A non-cumulative FD pays interest out monthly or quarterly instead.
Can I break an FD early?
Usually yes, with a penalty that reduces the interest rate applied, often by 0.5–1%.