Fixed Deposit (FD) Calculator

Enter the deposit, the rate your bank is offering and the tenure. The calculator shows the maturity value, the interest earned and the effective yield the compounding frequency actually produces.

Deposit amount

₹

Interest rate (per year)

Enter the rate your bank has actually quoted you. No rate is assumed here.

Tenure

Compounding

Indian banks almost always compound quarterly.

Pay the interest out instead of compounding itA non-cumulative FD returns the deposit at maturity and pays interest as income.

Maturity value

₹7,16,130

Interest earned

₹2,16,130

Deposit

₹5,00,000

Effective annual yield

7.45%

7.25% compounded

Deposit vs interest

Deposit: ₹5,00,000 (69.8%)
Interest: ₹2,16,130 (30.2%)

Year by year

Year by year
Year	Value	Interest to date
1	₹5,37,248	₹37,248
2	₹5,77,270	₹77,270
3	₹6,20,274	₹1,20,274
4	₹6,66,481	₹1,66,481
5	₹7,16,130	₹2,16,130

Maturity value

₹7,16,130

₹2,16,130 interest

What it is:: A calculator for a bank or post office fixed deposit.
What it calculates:: The maturity value, the interest earned, and the effective annual yield the compounding produces.

Assumptions

The rate is the one you enter; no bank's rate is assumed.
The rate holds for the full tenure, which is how a fixed deposit works unless you break it.
TDS and income tax on the interest are not deducted.
Premature withdrawal penalties, which most banks apply, are not modelled.

How it works

A cumulative fixed deposit compounds interest back into the deposit each period, so the maturity value is the deposit grown at the quoted rate. Indian banks almost always compound quarterly, which is the default here.

A non-cumulative fixed deposit pays the interest out instead - monthly, quarterly or annually - so nothing compounds. You get the deposit back at maturity and the interest in instalments along the way. Switch the payout option on to model this.

The effective annual yield shown is what the compounding frequency turns the quoted rate into. A rate of 8% compounded quarterly yields 8.24% a year; the same 8% paid out rather than compounded yields exactly 8%.

No bank's rate is assumed anywhere on this page. Rates differ by bank, by tenure, by deposit size and by whether you are a senior citizen, and they change often. Enter the rate you have actually been quoted.

Tenure is entered in months so that the odd tenures Indian banks like - 18 months, 444 days, 2 years 11 months - can be expressed.

Formula

A = P x (1 + r/n)^(n x t)

A: = maturity amount
P: = deposit
r: = annual rate as a decimal
n: = compounding periods per year: 4 for quarterly
t: = tenure in years

For a non-cumulative deposit nothing compounds, so the total interest is simply P x r x t and the maturity value is the deposit back.

Example calculation

₹5,00,000 at 7.25% for 5 years

Maturity value, compounded quarterly: ₹7,16,130
Interest earned: ₹2,16,130
Effective annual yield: 7.45%
Same deposit compounded yearly instead: ₹7,09,507
Total interest if paid out instead of compounded: ₹1,81,250

Frequently asked questions

How often do banks compound an FD?

Quarterly, in almost every case, which is the default here. A few products compound monthly and some post office deposits compound annually. The quoted rate stays the same either way; what changes is the effective yield, which this calculator shows.

Is the interest taxable?

Yes. FD interest is added to your income and taxed at your slab rate, and banks deduct TDS once the interest crosses the threshold for the year. This calculator shows the gross figures, so your take-home will be lower.

What is the difference between cumulative and non-cumulative?

A cumulative FD keeps the interest inside the deposit so it compounds, and pays everything at maturity. A non-cumulative FD pays the interest out as income. Over the same tenure, cumulative ends with more money; non-cumulative gives you cash flow. Use the payout switch to compare them.

What happens if I break the FD early?

Most banks pay the rate applicable to the period the deposit actually ran, and then deduct a penalty of around 0.5% to 1%. Your actual terms are in the deposit receipt. This calculator does not model that penalty.

Is an FD better than a debt fund or PPF?

They answer different questions. An FD gives you a fixed, known rate and liquidity for a penalty. PPF gives a tax-free return but locks the money for 15 years. A debt fund gives no fixed rate at all. Compare the after-tax return and how soon you need the money, not just the headline rate.