Fixed Deposit (FD) Calculator
See how much your fixed deposit will grow. Enter the amount, interest rate, tenure and compounding frequency to get the maturity value and the interest you will earn — with quarterly compounding, the way most Indian banks calculate it.
Enter your deposit amount, rate and tenure to see the maturity value.
Maturity value
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How fixed deposit interest is calculated
A fixed deposit, or FD, locks a lump sum with a bank for a set period in return for a fixed interest rate. Unlike a savings account, the rate is agreed upfront and does not change for the tenure, which makes an FD one of the most predictable ways to grow money. The growth comes from compound interest: the interest you earn is added back to the deposit, and the next round of interest is calculated on the larger balance.
The maturity value is found with the formula A = P × (1 + r/n)n×t, where P is the amount you deposit, r is the annual interest rate, n is how many times a year the interest is compounded, and t is the tenure in years. Indian banks almost always compound quarterly, so n is 4 — though some products use monthly or half-yearly compounding, which you can switch between above. The more often interest is compounded, the slightly higher your final amount for the same headline rate.
This calculator shows a cumulative FD, where interest is reinvested and paid in full at maturity. That is different from a non-cumulative FD, which pays the interest out monthly or quarterly and so does not benefit from compounding to the same degree. If you need a regular income, a non-cumulative option may suit you better even though the headline maturity is lower.
One number this tool does not show is tax. Interest earned on an FD is fully taxable: it is added to your income and taxed at your slab rate, and banks deduct TDS once the interest in a year crosses the prescribed limit. The maturity figure here is therefore the gross amount before tax — your in-hand return will be a little lower depending on your tax bracket.
Use the calculator to compare tenures and rates from different banks, and remember that breaking an FD early usually means a penalty and a reduced rate. For long horizons, it is also worth comparing the FD return against an equity SIP, which carries more risk but has historically grown faster over long periods.
Frequently asked questions
How is FD maturity calculated?
Most banks use compound interest: A = P × (1 + r/n)n×t, where P is the deposit, r is the annual rate, n is how many times a year interest is compounded, and t is the tenure in years. Indian bank FDs usually compound quarterly (n = 4).
What compounding frequency do banks use for FDs?
Quarterly compounding is the standard for most Indian bank fixed deposits. Some products compound monthly or half-yearly. More frequent compounding gives a slightly higher maturity value for the same interest rate.
Is FD interest taxable?
Yes. Interest on a fixed deposit is added to your income and taxed at your slab rate. Banks also deduct TDS if the interest in a year crosses the threshold. This calculator shows the gross maturity value before any tax or TDS.
What is the difference between simple and compound interest on an FD?
Simple interest is paid only on the original principal, so it suits FDs that pay out interest periodically. Compound (cumulative) FDs reinvest the interest, so you earn interest on interest and the maturity value is higher. This calculator uses compound interest.
Can I withdraw an FD before maturity?
Usually yes, but premature withdrawal typically attracts a small penalty and a lower interest rate than originally agreed. Check your bank's terms — the figures here assume the deposit is held to maturity.
This calculator is for general information only and is not financial advice. Maturity figures are before tax and TDS, and actual returns depend on your bank's exact rates, compounding and rounding. Confirm with your bank before investing.