What is a fixed deposit, and who needs an FD calculator?
A fixed deposit (FD) is a savings product where you lock in a lump sum with a bank, post office or NBFC for a set period at a fixed interest rate. This calculator shows how much your deposit grows to by maturity and how much interest you earn, based on the amount, rate, tenure and how often interest is compounded.
Savers use it to compare banks and tenures, retired people use it to plan steady income, and parents use it when setting money aside for education or a wedding. It also helps anyone parking an emergency fund or a down payment where safety of capital matters more than high returns.
Formula used
- Maturity amount = P × (1 + r ÷ n)n × t
- Interest earned = Maturity amount − P
Here P is the deposit, r is the annual interest rate as a decimal (7% is 0.07), n is how many times a year interest is compounded (1, 2, 4 or 12), and t is the tenure in years.
Worked example
Suppose you deposit ₹1,00,000 at 7% for 5 years with quarterly compounding.
- Rate per quarter = 0.07 ÷ 4 = 0.0175, and number of quarters = 4 × 5 = 20
- (1.0175)20 is about 1.4148
- Maturity = 1,00,000 × 1.4148 = about ₹1,41,478
- Interest earned = about ₹41,478
Try a larger deposit: ₹5,00,000 at 7.5% for 3 years, compounded quarterly. The rate per quarter is 1.875% over 12 quarters, and (1.01875)12 is about 1.2497. Maturity is about ₹6,24,858, so the interest earned is about ₹1,24,858.
Frequently asked questions
How often do Indian banks compound FD interest?
Most banks compound FD interest quarterly, which is why Quarterly is the default here. Some banks offer monthly or yearly payouts instead of reinvesting interest. This calculator assumes the interest is reinvested, as in a cumulative FD.
Does compounding frequency make a big difference?
A little. On ₹1,00,000 at 7% for 5 years, yearly compounding gives about ₹1,40,255, half-yearly about ₹1,41,060, quarterly about ₹1,41,478 and monthly about ₹1,41,763.
Is FD interest taxable?
Yes. Interest is added to your income and taxed at your slab rate, and banks may deduct TDS once interest crosses a yearly limit. This calculator shows pre-tax interest, so your actual gain will be lower.
Can I enter a tenure in months or days?
Enter it in years as a decimal. For 18 months type 1.5, and for 9 months type 0.75. Banks may count days slightly differently, so small differences are possible.
What happens if I break an FD early?
Banks usually pay a lower rate and may charge a penalty on premature withdrawal, so your payout will be less than the maturity value shown here. Check your bank's rules before locking in a long tenure.
Limitations and accuracy
Results are estimates. The tool assumes one fixed rate for the whole tenure, reinvested interest, and no tax, TDS, penalty or premature withdrawal. Banks may use day-count rules and rounding that change the final figure by a few rupees, and any special rate for senior citizens must be entered by you. For exact figures, check your bank's FD receipt or rate card. This tool is for information only and is not financial advice.