FD Calculator
Work out the maturity value and interest on your bank fixed deposit. Enter the principal, interest rate, tenure and compounding frequency to see exactly what your FD will be worth.
How FD maturity is calculated
A cumulative fixed deposit compounds the interest at a set frequency and pays it out with the principal at maturity. The maturity value is:
| Formula |
|---|
| M = P × (1 + r/n)n × t |
Where P is the principal, r the annual interest rate (as a decimal), n the number of times interest compounds per year, and t the tenure in years. Most Indian banks compound quarterly (n = 4).
Worked example
A ₹1,00,000 FD at 7% for 5 years, compounded quarterly, matures at about ₹1,41,478 — roughly ₹41,478 of interest. Choosing monthly compounding gives a slightly higher figure; yearly compounding a slightly lower one.
Good to know
Cumulative vs payout
A cumulative FD reinvests interest until maturity (shown here). A non-cumulative FD pays interest monthly or quarterly, so the principal stays the same.
Senior citizens
Senior citizens usually earn 0.25%–0.75% more on FDs and have a higher TDS threshold of ₹50,000.
Tax-saver FD
A 5-year tax-saving FD qualifies for an 80C deduction (old regime), but the interest remains taxable.
Related tools
See our PPF Calculator, SIP Calculator and Salary Calculator.
Frequently asked questions
How is FD maturity amount calculated?
Maturity equals principal times (1 + r/n) raised to the power n times t, where r is the annual rate, n the compounding frequency per year and t the tenure in years.
How often is FD interest compounded?
Most banks compound FD interest quarterly, though some offer monthly, half-yearly or yearly compounding. More frequent compounding gives a slightly higher maturity value.
Is FD interest taxable?
Yes. FD interest is fully taxable at your income-tax slab rate. Banks deduct 10% TDS if interest exceeds ₹40,000 a year, or ₹50,000 for senior citizens.
What is a cumulative FD?
A cumulative FD reinvests the interest each period and pays the total principal plus interest at maturity, which is what this calculator estimates.
Do senior citizens get higher FD rates?
Yes, typically 0.25% to 0.75% more than the standard rate, along with a higher TDS exemption threshold.
Does monthly compounding earn more than quarterly?
Slightly, yes. The more frequently interest compounds, the higher the maturity value for the same nominal rate.
Disclaimer: This calculator is for general information and educational purposes only and is not financial advice. Actual FD maturity depends on the bank’s rate, compounding method and applicable TDS. © ClearTax Advisors.