FD Calculator

You can also use GST Calculator

What This Tool Does

This calculator estimates how much a fixed deposit will be worth when it matures. Enter your deposit amount, interest rate, and tenure, and it instantly returns the total interest earned and the final maturity amount. It works for both simple interest and compound interest FDs, so you can compare options across banks before committing.

How It’s Calculated

FD returns are calculated differently depending on whether the deposit pays simple or compound interest.

Simple Interest FD:

M = P + (P × r × t ÷ 100)

Where P is the principal, r is the annual interest rate, and t is the tenure in years.

Worked Example:

Deposit ₹1,00,000 for 5 years at 10% simple interest:

M = ₹1,00,000 + (1,00,000 × 10 × 5 ÷ 100) = ₹1,50,000

Interest earned = ₹50,000

Compound Interest FD:

M = P × (1 + i/100)^t

Where i is the rate per compounding period and t is the number of periods.

Worked Example:

Same deposit — ₹1,00,000 for 5 years at 10% compounded annually:

M = ₹1,00,000 × (1 + 10/100)^5 = ₹1,61,051

Interest earned = ₹61,051

The difference — ₹11,051 — is purely from compounding. Most bank FDs use quarterly compounding, which pushes the maturity amount even higher than annual compounding at the same stated rate.

Edge Cases and Special Rules

Compounding frequency: Banks compound interest at different intervals — monthly, quarterly, or annually. Quarterly is the most common. Two FDs with the same rate but different compounding schedules will produce different maturity amounts. Always check the compounding frequency, not just the headline rate.

Tenure in days: Some banks accept tenures specified in exact days rather than whole months. The interest calculation adjusts proportionally — a 400-day FD earns slightly more than a 12-month one at the same rate.

TDS: If your total FD interest in a financial year exceeds ₹40,000 (₹50,000 for senior citizens), the bank deducts TDS at 10%. This calculator shows gross interest — your actual payout will be lower if TDS applies. Submit Form 15G or 15H if your income falls below the taxable limit to prevent the deduction.

Premature withdrawal penalty: Breaking an FD before maturity typically reduces the applicable interest rate by 0.5% to 1% for the period held. The calculator assumes the deposit runs to full term.

Senior citizen rates: Most banks offer an additional 0.25% to 0.50% on FD rates for depositors above 60. Enter the higher rate in the calculator if this applies to you.

Types of Fixed Deposits

Regular FD: A lump sum locked in for a fixed period at a set rate. Straightforward and widely available across banks including SBI, HDFC, ICICI, Axis, Kotak, and IndusInd.

Cumulative FD: Interest compounds throughout the tenure and is paid out along with the principal at maturity. Best for building a lump sum over time.

Non-cumulative FD: Interest is paid out monthly, quarterly, or annually while the principal stays invested. Suitable for anyone needing regular income from their deposit.

Tax-saving FD: Deposits up to ₹1.5 lakh per year qualify for deduction under Section 80C. These carry a mandatory 5-year lock-in and cannot be withdrawn early.

Post Office FD: Offered by India Post with government backing. Available for tenures of 1, 2, 3, and 5 years. The 5-year option qualifies for Section 80C tax benefits.

Senior Citizen FD: Same structure as a regular FD with a higher interest rate for eligible depositors above 60.

Who Uses This

• Salaried individuals setting aside a lump sum for a specific goal — home down payment, education, or emergency fund
• Retirees and senior citizens comparing banks for the best rate on regular income payouts
• Conservative investors who want stable, predictable returns without market risk
• Anyone comparing FD rates across SBI, HDFC, ICICI, Axis, Post Office, or smaller banks before booking
• People reinvesting matured FDs who want to project returns at current prevailing rates

FD vs. RD

A Fixed Deposit requires a one-time lump sum investment. A Recurring Deposit accepts smaller fixed amounts each month, making it more suitable for those building savings from regular income. If the lump sum is available, an FD generally earns more overall since the full principal starts compounding from day one. If you are saving from monthly salary, an RD is the more practical option.

FAQ

How is monthly interest payout calculated on an FD?

Divide the annual interest by 12. For ₹5,00,000 at 7% per annum: ₹5,00,000 × 7% ÷ 12 = approximately ₹2,917 per month. The principal is returned at maturity.

Which bank offers the best FD interest rate?

Rates vary by tenure and depositor type and change frequently. Smaller private banks and small finance banks often offer higher rates than large public sector banks, but deposit insurance covers only up to ₹5 lakh per depositor per bank. Compare current rates before booking.

Is FD interest taxable in India?

Yes. FD interest is added to your total income and taxed at your applicable slab rate. TDS is deducted at source if total interest in a financial year crosses the threshold.

Can I take a loan against my FD?

Most banks allow loans or overdrafts against FDs, typically up to 90% of the deposit value. The interest charged is usually 1–2% above the FD rate, making it a cheaper alternative to a personal loan while keeping your deposit intact.

What is the minimum tenure for an FD?

FDs are available for tenures as short as 7 days, though very short-term FDs typically carry lower interest rates. Most competitive rates apply to tenures between 1 and 5 years.

A Note on Results

All figures produced by this calculator are estimates based on the inputs you provide. Actual maturity amounts may differ due to your bank’s compounding method, applicable TDS, and specific deposit terms. Confirm the final amount directly with your bank or post office before making any investment decision.