How to use the FD Calculator
- Enter the amount you want to deposit.
- Enter the yearly interest rate offered by your bank for the tenure you chose.
- Enter the tenure in years. Use 0.5 for 6 months or 1.5 for 18 months.
- Select the compounding. Quarterly is the usual choice for FDs in India. Then read the maturity amount.
Formula used
Maturity amount = P × (1 + r ÷ m)^(m × t), where P is the deposit, r is the yearly rate as a decimal, m is the number of compounding periods per year and t is the tenure in years.
Worked example
Here is the FD Calculator worked through with the example values shown above, so you can check each step by hand.
| Inputs | |
|---|---|
| Deposit amount | ₹1,00,000 |
| Interest rate (per year) | 7 % |
| Tenure | 5 years |
| Compounding | Quarterly |
| Result | |
| Maturity amount | ₹1,41,478 |
| Amount invested | ₹1,00,000 |
| Interest earned | ₹41,478 |
Year-by-year growth
Balance at the end of each year for the default inputs, with interest compounding at the chosen frequency.
| Year | Balance | Interest earned so far |
|---|---|---|
| 1 | ₹1,07,186 | ₹7,186 |
| 2 | ₹1,14,888 | ₹14,888 |
| 3 | ₹1,23,144 | ₹23,144 |
| 4 | ₹1,31,993 | ₹31,993 |
| 5 | ₹1,41,478 | ₹41,478 |
How FD maturity is calculated
The maturity amount is P × (1 + r ÷ m)^(m × t), where P is the deposit, r is the yearly rate as a decimal, m is how many times a year interest is compounded and t is the tenure in years. For a ₹1,00,000 deposit at 7% for 5 years with quarterly compounding, the maturity amount is ₹1,41,478, so you earn ₹41,478 in interest.
That is slightly more than the same deposit would earn if interest were paid out instead of compounded, because each payout is added to the balance that earns interest in later periods.
Does compounding frequency matter?
It matters, but the effect is modest. For ₹1,00,000 at 7% for 5 years, yearly compounding gives ₹1,40,255, half-yearly gives ₹1,41,060, quarterly gives ₹1,41,478 and monthly gives ₹1,41,763. The gap between yearly and monthly is about ₹1,500.
The rate and the tenure matter far more. The same deposit at 7% grows to ₹2,00,160 over 10 years with quarterly compounding, and a ₹5,00,000 deposit for 5 years at 7% reaches ₹7,07,389.
Things to check before you book an FD
Interest on a fixed deposit is generally added to your income and taxed at your slab rate, and banks may deduct TDS when your interest crosses a yearly limit. The limit and rules can change, so confirm them with your bank or the income tax department.
Withdrawing before maturity usually attracts a penalty and a lower rate. Also check whether your deposit is cumulative, where interest is reinvested, or non-cumulative, where interest is paid out monthly, quarterly or yearly. This calculator shows the cumulative case. Deposits in a bank are currently insured by the DICGC up to a limit per depositor per bank, so it is worth knowing how much of your savings sits with one bank.
Frequently asked questions
How do I calculate FD maturity amount?
Use Maturity = P × (1 + r ÷ m)^(m × t). For ₹1,00,000 at 7% for 5 years compounded quarterly, the maturity amount is about ₹1,41,478.
Which compounding do banks use for FDs?
Many Indian banks compound FD interest quarterly, but some products pay interest out or use other schedules. Check your deposit receipt or your bank’s website.
Why does my bank show a slightly different maturity amount?
Banks may round figures, use day counts for part periods or add interest for odd dates in a different way. Small differences are normal. The bank’s figure is the one that applies to you.
Is FD interest taxable?
Yes, interest from a fixed deposit is usually taxable as income at your slab rate, and TDS may be deducted. This calculator shows figures before tax.
Is a higher FD rate always better?
Not always. Compare the rate along with the bank’s safety, the tenure, the penalty for early withdrawal and whether interest is cumulative or paid out. Also compare the post-tax return with other options.
Can I use this calculator for a recurring deposit?
No. A recurring deposit adds a new instalment every month, so its maturity is calculated differently. For a lump-sum deposit left untouched, use this FD calculator.
This calculator gives estimates for information only. Actual figures from a bank, employer, tax authority or doctor may differ. It is not financial, tax, legal or medical advice.