Use this free online Fixed Deposit (FD) calculator to estimate the maturity value and interest earned on your bank fixed deposit. Enter the principal amount, annual interest rate, tenure, and compounding frequency to instantly see your maturity amount and total interest earned.
How to Use the Fixed Deposit (FD) Calculator
Enter the amount you're depositing in the "Principal Amount (₹)" field.
Enter the rate offered by your bank in the "Annual Interest Rate (%)" field.
Enter how long the deposit will stay locked in in the "Tenure (years)" field.
Choose how often interest compounds — Annually, Half-Yearly, Quarterly, or Monthly — from the "Compounding Frequency" dropdown.
Click "Calculate FD" to view your Maturity Amount and Total Interest Earned.
Worked Example: ₹1 Lakh at 7% for 5 Years
With quarterly compounding the calculator works out 1,00,000 × (1 + 7 ÷ 400)^(4 × 5) = ₹1,41,477.82, so the interest earned is ₹41,477.82. The same deposit at each compounding frequency:
Compounding
Maturity amount
Interest earned
Effective annual yield
Annually
₹1,40,255.17
₹40,255.17
7.000%
Half-yearly
₹1,41,059.88
₹41,059.88
7.122%
Quarterly
₹1,41,477.82
₹41,477.82
7.186%
Monthly
₹1,41,762.53
₹41,762.53
7.229%
The effective annual yield is what the stated rate really earns in a year once compounding is included. Banks often show it alongside the rate on their FD rate cards, which makes it the fairest way to compare two deposits with different compounding.
How Bank FDs Work in India
Cumulative vs payout. Most banks compound cumulative (reinvestment) FDs quarterly, so choose Quarterly unless your bank says otherwise. If you pick a monthly or quarterly payout option, interest is paid out instead of compounding, and the total you receive is close to simple interest.
Tenure in months or days. For an FD of 18 months, enter 1.5 years. The formula then treats the deposit as 6 quarters, which matches how banks usually compound. Odd-day tenures may be computed slightly differently by your bank.
Senior citizens are usually offered a higher rate than the card rate. Enter that higher rate to see the difference.
Deposit insurance. DICGC insures deposits up to ₹5 lakh per depositor per bank, covering principal and interest together. Splitting larger sums across banks keeps each within the cover.
Tax and Your Real Return
The maturity amount shown is before tax. FD interest is added to your income and taxed at your slab rate each year it accrues, even in a cumulative FD where nothing is paid out until maturity. Banks deduct TDS once a depositor's interest in the year crosses a set threshold; if your total income is below the taxable limit you can submit Form 15G, or Form 15H if you are a senior citizen, to avoid deduction. Thresholds change from time to time, so check them with your bank.
For a rough post-tax figure, multiply the interest by (1 − your tax rate). In the example, at a 20% slab ₹41,477.82 of interest becomes about ₹33,182 after tax. Breaking an FD early usually attracts a penalty of a fraction of a percent on the rate, so match the tenure to when you will need the money.
Frequently Asked Questions
It uses the standard compound interest formula: Maturity Amount = P × (1 + r/(100×n))^(n×t), where P is the principal, r is the annual interest rate, n is the compounding frequency per year (1, 2, 4, or 12), and t is the tenure in years. Total Interest Earned is the maturity amount minus the principal.
The more frequently interest compounds — Monthly instead of Annually, for example — the higher your maturity amount will be for the same principal, rate, and tenure, since interest is calculated and added to the principal more often.
Quarterly, for most cumulative FDs at Indian banks. Some deposits for short tenures pay simple interest at maturity, and corporate FDs may compound annually or monthly. The deposit receipt or the bank's FD terms state the method.
Banks count the actual number of days, round interest at each compounding date, and may deduct TDS from the credited interest. This calculator uses whole compounding periods and no tax, so differences of a few rupees, or more if TDS was deducted, are expected.
Yes. Interest on a cumulative FD is generally taxable year by year as it accrues, not only in the year of maturity. Your bank reports it, and it appears in your Annual Information Statement, so declare it in each year's return.