Finance

FD Calculator

A Fixed Deposit calculator that shows your maturity amount, total interest earned, and effective annual yield. Supports monthly, quarterly, half-yearly, and annual compounding frequencies.

Deposit amount (₹)

Annual interest rate (%)

Tenure (months)

Compounding

Maturity amount

₹1,41,478

Principal

₹1,00,000

Interest earned

₹41,478

Effective rate

7.19%

PrincipalInterest

Method

How this calculator works

FD uses compound interest to grow your principal. Interest earned is reinvested at the same rate, and the frequency of compounding determines how often this reinvestment happens.

A = P × (1 + r/n)^(n × t)

A = Maturity amount
P = Principal (deposit)
r = Annual rate (decimal)
n = Compounding frequency per year
t = Tenure in years

Enter your deposit amount (principal).
Enter the annual interest rate offered by your bank.
Set the tenure in months.
Choose the compounding frequency (quarterly is most common in India).
The calculator shows maturity amount, total interest earned, and effective annual rate.

Examples

Worked examples

Real numbers, end-to-end results.

₹1,00,000 · 7% · 5 years · Quarterly

Maturity ₹1,41,478 · Interest ₹41,478

Standard bank FD with quarterly compounding.

₹5,00,000 · 7.5% · 3 years · Monthly

Maturity ₹6,25,170 · Interest ₹1,25,170

Higher principal with monthly compounding.

₹2,00,000 · 6.5% · 1 year · Quarterly

Maturity ₹2,13,299 · Interest ₹13,299

Short-tenure FD for emergency fund.

Use cases

When to use it

Compare FD offers from different banks before investing.
Plan a savings goal — see how much your deposit grows over time.
Calculate interest income for tax planning purposes.
Decide between monthly vs quarterly compounding options.

FAQ

Frequently asked questions

What is a Fixed Deposit (FD)?

A Fixed Deposit is a savings instrument where you deposit a lump sum with a bank for a fixed tenure at a predetermined interest rate. It is one of the safest investment options with guaranteed returns.

How is FD interest calculated?

FD interest is calculated using compound interest: A = P × (1 + r/n)^(n×t), where P is principal, r is annual rate, n is compounding frequency, and t is tenure in years.

What is quarterly compounding vs monthly compounding?

Quarterly compounding adds interest 4 times a year, monthly does it 12 times. Monthly compounding yields slightly more interest because earned interest starts compounding sooner.

Is FD interest taxable?

Yes. FD interest is taxable as "Income from Other Sources." If total interest exceeds ₹40,000/year (₹50,000 for seniors), TDS at 10% is deducted. You can submit Form 15G/15H to avoid TDS if your total income is below taxable limits.

Can I withdraw my FD before maturity?

Yes, most banks allow premature withdrawal with a penalty (usually 0.5–1% rate reduction). Some banks offer partial withdrawal without breaking the entire FD.

What is the effective annual rate?

The effective annual rate accounts for compounding. A 7% annual rate compounded quarterly gives an effective rate of ~7.19%, meaning you actually earn more than the stated nominal rate.