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Calculates

FD Calculator

Calculate your fixed deposit maturity amount and total interest earned.

Calculated & verified for mathematical accuracy·Reviewed by the Calculates Editorial Team

Fixed deposit details

0 – 5,00,00,000
0 – 15

Senior citizens usually receive 0.25%–0.75% more — enter your applicable rate.

Total tenure: 5 yr (60 months)

Compounding frequency

Maturity amount

₹1,43,226

Payable after 5 yr at 7.25% p.a.

Principal
₹1,00,000
Total interest
₹43,226
Effective yield
7.45%
Interest per year
₹8,645
  • Principal₹1,00,000
  • Interest₹43,226

A non-cumulative FD paying interest out would total ₹36,250. Letting interest stay in the deposit earns ₹6,976 more. Figures are before TDS.

About this calculator

A fixed deposit locks a lump sum with a bank for an agreed term at a rate fixed on the day you book it, which is why FD returns are predictable in a way market-linked products are not. This calculator works out exactly what you will be paid on the maturity date, splits that into your capital and the interest earned, and shows the effective yield that quarterly crediting produces from the advertised rate.

How to use this calculator

  1. Enter the deposit amount

    The lump sum you are placing with the bank. Many depositors split a large amount across several smaller FDs, which lets you break just one of them if you need cash early rather than closing the whole holding.

  2. Enter the interest rate you were quoted

    Use the exact rate applicable to your tenure slab. Senior citizens usually get an additional 0.25% to 0.75% — if that applies to you, type the enhanced rate rather than the standard one.

  3. Set the tenure in years and months

    Enter both fields; they are added together, so two years and six months is treated the same as thirty months. Rate slabs change at tenure boundaries, so check the bank card before assuming a longer FD pays more.

  4. Confirm the compounding frequency

    Quarterly is the default because it is what Indian scheduled banks use for cumulative deposits. Switch it only if your provider — often an NBFC or a corporate deposit — states otherwise in the terms.

Formula

M = P × (1 + r / n) ^ (n × t)
  • M is the maturity amount credited to you on the last day of the term.
  • P is the deposit amount placed with the bank.
  • r is the annual interest rate as a decimal: 7.25% becomes 0.0725.
  • n is the number of times interest is compounded per year — 4 for the quarterly crediting Indian banks apply to cumulative FDs.
  • t is the tenure in years; a tenure of 30 months is entered as t = 2.5.
  • Interest earned is M − P. For a non-cumulative FD that pays interest out each quarter instead of retaining it, nothing compounds and the total is the simple-interest figure P × r × t.

Worked example

Inputs

  • Deposit amount (P): ₹1,00,000
  • Interest rate (r): 7.25% p.a.
  • Tenure (t): 5 years
  • Compounding: Quarterly (n = 4)

Calculation

r / n = 0.0725 / 4 = 0.018125 n × t = 4 × 5 = 20 quarters M = 100000 × (1.018125)^20 = 100000 × 1.4322606 = 1,43,226.06 Interest = 1,43,226.06 − 1,00,000 = 43,226.06 Effective yield = (1.018125)^4 − 1 = 7.45% p.a.

The FD matures at ₹1,43,226.06, of which ₹43,226.06 is interest. A non-cumulative FD at the same 7.25% would have paid out ₹36,250 across the five years, so choosing the cumulative option is worth nearly ₹7,000 more.

What the result means

  • The maturity amount is contractually fixed on the day you book the deposit. Unlike a market-linked investment, this figure does not move if rates change afterwards — that certainty is the entire point of an FD.
  • The effective yield is higher than the quoted rate because quarterly crediting lets interest start earning interest. When comparing two banks, compare effective yields rather than the headline numbers on the rate card.
  • The total interest shown is before tax. FD interest is taxable at your slab rate, and the bank deducts TDS at 10% once annual interest crosses ₹40,000 (₹50,000 for senior citizens), so your net receipt will be lower.
  • Your real return is the effective yield minus inflation. When inflation runs near or above the FD rate, the deposit preserves the rupee amount but quietly loses purchasing power.

Related calculations

  • Compare the same deposit at a bank paying 0.5% more to see whether moving the money is worth the paperwork.
  • Check the maturity value at each tenure slab your bank offers — the longest tenure does not always carry the best rate.
  • Work out the same total contribution as a monthly recurring deposit instead, to see what you give up by not having the full sum available upfront.

Frequently asked questions

How is FD maturity amount calculated?

For a cumulative fixed deposit the bank applies M = P × (1 + r/n)^(n×t), where interest is credited into the deposit at each compounding date and then earns interest itself. Indian banks compound quarterly, so a five-year FD goes through twenty compounding events. Non-cumulative deposits that pay interest out use simple interest instead, because nothing is retained to compound.

What is the difference between a cumulative and non-cumulative FD?

A cumulative FD retains every interest payment inside the deposit so it compounds, and pays one lump sum at maturity — best if you do not need the income now. A non-cumulative FD pays interest out monthly, quarterly or annually, which suits retirees living off the income but produces a lower total because nothing is reinvested. This calculator models the cumulative option and shows the payout total for comparison.

Is FD interest taxable?

Yes. Interest from a fixed deposit is added to your total income and taxed at your applicable slab rate, in the year it accrues rather than the year you receive it. Banks deduct TDS at 10% once interest across your deposits with them exceeds ₹40,000 in a financial year, or ₹50,000 for senior citizens, rising to 20% if you have not submitted a PAN.

What happens if I break my FD before maturity?

The bank recalculates your interest at the rate applicable to the period the money actually stayed on deposit, not the rate you originally booked, and then typically applies a penalty of 0.5% to 1% on top. Breaking a five-year FD after eighteen months therefore earns the eighteen-month card rate minus the penalty, which can be substantially below what this calculator shows.

Is my money in a fixed deposit safe?

Bank deposits in India are insured by the DICGC up to ₹5,00,000 per depositor per bank, covering principal and interest together across all your accounts at that institution. Spreading larger sums across multiple banks keeps the whole amount within the insured limit. Corporate and NBFC deposits carry no such cover and depend entirely on the issuer, which is why they advertise higher rates.

Do senior citizens get a better FD rate?

Most banks offer depositors aged sixty and above an extra 0.25% to 0.75% over the standard card rate, and several run special long-tenure schemes with a larger premium. The bonus is not applied automatically by this calculator — enter the enhanced rate you have been quoted, and the higher TDS threshold of ₹50,000 will also apply to you.

Which tenure gives the best FD return?

Not necessarily the longest. Banks price tenure slabs independently and often put their best rate on an odd bucket like 444 or 555 days to attract deposits of a specific maturity, so a fifteen-month FD can out-yield a five-year one. Check the full rate card and run each candidate tenure through this calculator before committing.

Can I take a loan against my fixed deposit?

Yes, most banks lend up to 90% of the deposit value at roughly 1% to 2% above your FD rate, and the deposit keeps earning its contracted interest throughout. This is usually far cheaper than breaking the FD and losing the penalty, and considerably cheaper than a personal loan, so it is worth considering for a short-term cash need.

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