FD Calculator
A fixed deposit locks money with a bank for a set period at a fixed interest rate. Most banks in India compound the interest quarterly, so the maturity amount is higher than simple interest would give. This calculator works out the maturity amount and the interest earned for any amount, rate and tenure in years and months, with a choice of compounding, and shows the effective annual yield so you can compare deposits that compound differently. Interest on fixed deposits is taxable, and banks deduct TDS above certain limits.
How to use the fd calculator
- Enter the deposit amount and the interest rate offered.
- Enter the tenure in years and months.
- Choose how the interest compounds. Quarterly is the usual default for Indian banks.
- Compare the effective yield between banks and tenures.
Formula
Maturity = P × (1 + r ÷ m)m × t, where r is the annual rate, m the number of compounding periods a year (4 for quarterly) and t the tenure in years. Simple interest: P × (1 + r × t). Effective annual yield = (1 + r ÷ m)m − 1.
Worked examples
₹1 lakh at 7% for 5 years
With quarterly compounding the FD matures at ₹1,41,477.82 — interest of ₹41,477.82 and an effective yield of 7.186%.
Compounding matters
With yearly compounding the same FD gives ₹1,40,255.17; with simple interest, ₹1,35,000.00.
A 2-year 6-month tenure
₹1 lakh at 7% for 2 years 6 months (quarterly) matures at ₹1,18,944.45.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- ₹5 lakh FD at 7.25% for 3 years, quarterly compounding. What is the maturity amount?
Show answer
Maturity amount: ₹6,20,273.50 · Interest earned: ₹1,20,273.50
Common mistakes to avoid
- Comparing rates without comparing compounding. Use the effective yield.
- Forgetting that interest is taxable at your slab rate, which lowers the post-tax return.
- Breaking an FD early. Premature withdrawal usually carries a penalty on the rate.
- Keeping everything in one bank beyond insured limits. Deposit insurance covers a limited amount per depositor per bank.
- Ignoring inflation, which can exceed the post-tax return.
Frequently asked questions
How is FD maturity calculated?
With the compound-interest formula P × (1 + r/m)^(m×t), where m is how many times a year interest compounds.
Do banks compound FD interest quarterly?
Many do for cumulative deposits. Some banks offer monthly or quarterly payouts instead; check your deposit terms.
Is FD interest taxable?
Yes, as income at your slab rate; banks deduct TDS above specified limits.
What is the effective yield?
The annual return after compounding. It lets you compare deposits with different compounding.
Is this financial advice?
No. Check the rate and terms with your bank.
Sources and further reading
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.