Fixed Deposits are secure investments. Most bank deposits compound interest quarterly. Use this calculator to estimate exact maturity values.
/
/Fixed Deposit (FD) Calculator
Fixed Deposit (FD) Calculator
Calculate interest earned and maturity amount of bank Fixed Deposits.
Fixed Deposit (FD) Calculator
Maturity Projections
Future Wealth Value₹0
Invested Principal₹0
Returns Earned₹0
What is a Fixed Deposit (FD) Calculator?
Calculate your Fixed Deposit (FD) maturity amount. Enter your principal deposit, interest rate, compounding frequency, and tenure to see your final maturity amount and total interest earned.
How to Use This Calculator
- Enter your primary figure—such as your gross salary, product price, or target investment amount—into the base input field.
- Adjust the sliders or type numbers directly into the fields to specify parameters like interest rates and tenure duration.
- Enter any additional applicable values, such as tax-saving deductions, extra fees, or custom contribution percentages.
- Review the instant breakdown results, evaluate the visual compounding charts, and download the full breakdown as a PDF report.
Example Calculation: Compounding Investment Example
This table shows a realistic example calculation based on standard parameters. Enter your custom numbers in the sliders above to compare results.
| Parameter | Sample Value |
|---|---|
| Investment Style | Monthly SIP |
| Monthly Contribution | ₹10,000 |
| Expected Return Rate | 12% per annum |
| Duration Period | 15 Years |
| Total Maturity Value | ₹50,45,760 |
Fixed Deposit Compounding & Returns
Mathematical Formula:
A = P * (1 + r/n)^(n*t)
What is a Fixed Deposit (FD) Calculator?
A Fixed Deposit (FD) calculator is a free online financial planning tool designed to compute the maturity amount and interest earned on your savings deposited in a bank or financial institution. Fixed deposits are popular because they offer a guaranteed rate of interest over a pre-determined lock-in tenure, providing complete capital safety and predictable returns. The FD calculator helps you compare various interest rates and compounding frequencies (monthly, quarterly, or annually) so you can make informed decisions before allocating your capital.
How to Use This FD Calculator
- Input your initial investment or principal deposit amount.
- Enter the annual interest rate offered by your bank for the chosen deposit slab.
- Select your investment tenure in years, months, or days.
- Choose your compounding frequency preference (quarterly compounding is standard in most commercial banks).
- The calculator instantly displays the total maturity value and the total interest earned over the tenure.
FD Formula & Worked Example
With Compounding:
A = P * (1 + r/n)^(n * t)
Where:
- A is the maturity amount.
- P is the principal deposit amount.
- r is the annual interest rate (in decimal format, e.g., 7% is 0.07).
- n is the compounding frequency per year (1 for annual, 4 for quarterly, 12 for monthly).
- t is the tenure in years.
Worked Example (Quarterly Compounding): If you deposit ₹1,00,000 for a tenure of 5 years at an annual interest rate of 7.0% compounded quarterly:
- P = ₹1,00,000
- r = 0.07
- n = 4 (quarterly)
- t = 5 years
Plugging these values into the formula gives a final maturity value of approximately ₹1,41,478. Your total interest earned is ₹41,478.
FD Maturity Calculations at 7% Interest Rate (Quarterly Compounded)
Maturity values and interest earned for common fixed deposit amounts over a 5-year period:
| Principal Deposit | Interest Rate | Total Interest Earned | Maturity Value (5 Years) |
|---|---|---|---|
| ₹50,000 | 7.0% per annum | ₹20,739 | ₹70,739 |
| ₹1,00,000 | 7.0% per annum | ₹41,478 | ₹1,41,478 |
| ₹5,00,000 | 7.0% per annum | ₹2,07,389 | ₹7,07,389 |
| ₹10,00,000 | 7.0% per annum | ₹4,14,778 | ₹14,14,778 |
When Should You Use a Fixed Deposit Calculator?
You should use this FD calculator when seeking a low-risk, guaranteed investment option to park your surplus cash or achieve short-to-medium-term financial goals, such as saving for a holiday, down payment, or medical expenses. It is highly useful when comparing fixed deposit rates between different banks, deciding on the most tax-efficient tenure, or planning interest payouts (monthly or quarterly) to create a regular income stream during retirement.
Frequently Asked Questions (FAQ)
What is a Fixed Deposit (FD) and how does it work?
A Fixed Deposit (FD) is a secure investment product offered by banks, post offices, and non-banking financial companies (NBFCs) where you deposit a lump sum of money for a fixed tenure at a guaranteed interest rate. Once deposited, you cannot withdraw the funds without incurring a penalty (premature withdrawal charges). The bank uses your deposit to fund loans and, in return, pays you interest. The interest rate remains locked and unaffected by stock market crashes or economic fluctuations. This makes fixed deposits one of the safest and most popular investment vehicles for conservative investors, retirees, and individuals looking to protect their principal capital.
How does compounding frequency affect my FD returns?
The compounding frequency determines how often interest is calculated and added back to your principal amount. The more frequently interest compounds, the faster your money grows. Most commercial banks calculate interest on a quarterly compounding basis (four times a year). However, some schemes offer monthly compounding, which yields slightly higher returns. If you choose a simple interest payout (non-cumulative FD), the interest is credited to your savings account monthly or quarterly, and no compounding occurs. Cumulative FDs, where interest is reinvested and paid at maturity, leverage compounding to maximize final yields.
What is a cumulative vs. non-cumulative Fixed Deposit?
A cumulative fixed deposit is an option where the interest earned is reinvested into the principal balance periodically (typically quarterly). You receive the entire accumulated interest along with your initial deposit at the end of the lock-in tenure. This option is best for long-term wealth accumulation. A non-cumulative fixed deposit is an option where the interest earned is not reinvested; instead, it is paid out directly to your registered bank account at regular intervals (monthly, quarterly, semi-annually, or annually). This option is ideal for senior citizens or anyone requiring a steady stream of secondary income.
Are Fixed Deposit interest earnings taxable in India?
Yes, the interest earned on fixed deposits is fully taxable under Indian tax laws. The interest is added to your total annual income and taxed according to your standard income tax slab rate. Additionally, if the total interest earned across all your FD accounts with a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank is legally required to deduct Tax Deducted at Source (TDS). TDS is deducted at 10% if you have submitted your PAN card, or 20% if no PAN is provided. You can submit Form 15G or 15H to prevent TDS if your total taxable income is below the taxable limit.
What is a Tax-Saver Fixed Deposit and what are its rules?
A Tax-Saver Fixed Deposit is a special type of bank deposit that allows you to claim tax deductions of up to ₹1.5 Lakhs under Section 80C of the Income Tax Act. However, these tax-saver FDs have strict regulatory constraints: they come with a mandatory lock-in period of 5 years, during which premature withdrawals or loans against the deposit are strictly prohibited. The interest rate is fixed at the time of deposit and is generally comparable to standard 5-year FD rates. While the principal amount invested is tax-exempt under Section 80C, the interest earned is still taxable.
Can I withdraw my Fixed Deposit before the maturity date?
Yes, most banks allow premature withdrawal of fixed deposits in case of financial emergencies, but this comes at a cost. The bank will charge a premature withdrawal penalty, typically ranging from 0.5% to 1.0% of the interest rate. Additionally, the interest paid to you will not be the original agreed rate; it will be recalculated based on the rate applicable for the actual duration the deposit remained with the bank, minus the penalty percentage. Some specialized deposits, such as Tax-Saving FDs or lock-in corporate FDs, do not allow premature withdrawals under any circumstances.