FD Calculator (Fixed Deposit)
By Santaji GadepatilinUpdated October 27, 2026
A fixed deposit earns a guaranteed interest rate for a fixed term. Banks in India usually compound FD interest quarterly.
Maturity amount vs Tenure (years) — other inputs held at your current values.
How to use the FD calculator
Enter the deposit amount, the interest rate offered by your bank and the tenure. Pick the compounding frequency — quarterly is standard for most Indian bank FDs. You see the maturity amount, the interest earned and the effective annual yield.
For tenures under a year, change the unit to months or days.
The FD formula
A = P × (1 + r ÷ k)k × t
- P = deposit amount
- r = annual interest rate (7% = 0.07)
- k = compounding periods per year (4 for quarterly)
- t = tenure in years
This is the formula for a cumulative FD, where interest is added back to the deposit and earns interest itself.
Worked example
₹1,00,000 at 7% for 5 years, compounded quarterly:
- Quarterly rate = 7% ÷ 4 = 1.75%
- Number of quarters = 5 × 4 = 20
- Maturity = 1,00,000 × 1.017520 = ₹1,41,478
- Interest = ₹41,478
₹1 lakh FD at 7% (quarterly)
| Tenure | Maturity | Interest |
|---|---|---|
| 1 year | ₹1,07,186 | ₹7,186 |
| 2 years | ₹1,14,888 | ₹14,888 |
| 3 years | ₹1,23,144 | ₹23,144 |
| 5 years | ₹1,41,478 | ₹41,478 |
| 10 years | ₹2,00,160 | ₹1,00,160 |
Cumulative vs non-cumulative FD
| Cumulative | Non-cumulative | |
|---|---|---|
| Interest | Reinvested, paid at maturity | Paid out monthly, quarterly or yearly |
| Best for | Growing savings | Regular income, retirees |
| Return | Higher (compounding) | Lower (no compounding) |
Tax and TDS on FDs
- FD interest is fully taxable at your income tax slab rate.
- Banks deduct TDS when interest from one bank crosses the yearly threshold. Submit Form 15G (or 15H for senior citizens) if your income is below the taxable limit.
- A tax-saving FD has a 5-year lock-in and qualifies for deduction under the old regime only.
Tips to earn more
- Senior citizens usually get 0.25–0.75% extra.
- Ladder your FDs across different tenures so some money matures every year and you can reinvest at better rates.
- Compare the effective yield, not just the headline rate, when banks use different compounding.
Keep in mind
Premature withdrawal usually attracts a penalty of 0.5–1% on the rate. Deposits are insured by DICGC up to ₹5 lakh per depositor per bank.
Frequently asked questions
How is FD interest calculated?
Most Indian banks compound FD interest quarterly. Maturity = P × (1 + r/4)^(4t), where P is the deposit, r the annual rate and t the tenure in years.
How much will ₹1 lakh become in an FD in 5 years?
At 7% compounded quarterly it becomes about ₹1,41,478, earning about ₹41,478 in interest.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when interest crosses the yearly threshold, unless you submit Form 15G or 15H if eligible.
What is the effective yield of an FD?
It is the true annual return after compounding. A 7% FD compounded quarterly yields about 7.19% a year.
Which is better, cumulative or non-cumulative FD?
A cumulative FD reinvests the interest and gives the most at maturity. A non-cumulative FD pays interest out monthly or quarterly, which suits people who need regular income.