FD Calculator

Maturity Amount = P × (1 + r ÷ (n × 100))^{n × t}, where P is the deposit (principal) amount, r is the annual interest rate, n is the number of times interest compounds per year, and t is the tenure in years. Interest Earned = Maturity Amount − P.

This calculator models a cumulative (reinvestment) FD— the type most people mean by “FD” — where interest is not paid out periodically but is reinvested into the deposit and compounds along with the principal until maturity. Banks also offer non-cumulative FDs, where interest is paid out at regular intervals (monthly, quarterly or annually) instead of compounding, giving a steady income stream but a lower total payout at the end since nothing is reinvested.

Why quarterly compounding is the default here: almost all Indian scheduled banks — SBI, HDFC, ICICI, Axis and most others — compound FD interest quarterly by default, which is why it’s pre-selected. Some small finance banks and post office schemes use different frequencies, so always check your bank’s actual terms and switch the dropdown to match.

Worked example: deposit ₹1,00,000 at 7% annual interest for 5 years, compounded quarterly (n = 4). The periodic rate is 7 ÷ (4 × 100) = 0.0175, applied over n × t = 20 quarters: Maturity = 1,00,000 × (1.0175)²⁰≈ ₹1,41,478. Interest Earned ≈ ₹41,478 over the 5-year term — noticeably more than the ₹35,000 you’d earn from simple interest at the same rate, because each quarter’s interest itself starts earning interest.

Tax note:FD interest is fully taxable as “Income from Other Sources” at your slab rate. Banks deduct TDS if your total interest from that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens); submit Form 15G/15H if you’re eligible to avoid TDS deduction. This calculator shows pre-tax figures — consult a tax advisor for your exact liability.