🏦 FD Calculator
Calculate the maturity value and interest earned on a fixed deposit, using quarterly compounding as most Indian banks do, or any other frequency.
Quick answer: A ₹1,00,000 fixed deposit at 7% for 5 years, compounded quarterly, matures at ₹1,41,477.82 – earning ₹41,477.82 in interest.
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FD Calculator inputs
Result
Maturity amount
₹1,41,477.82
₹1,00,000.00 at 7% for 5 years
| Principal | ₹1,00,000.00 |
| Interest earned | ₹41,477.82 |
| Maturity value | ₹1,41,477.82 |
- Effective annual yield
- 7.19%
- Interest as % of deposit
- 41.48%
Balance at the end of each year
| Year | Interest to date | Balance |
|---|---|---|
| 1 | ₹7,185.90 | ₹1,07,185.90 |
| 2 | ₹14,888.18 | ₹1,14,888.18 |
| 3 | ₹23,143.93 | ₹1,23,143.93 |
| 4 | ₹31,992.94 | ₹1,31,992.94 |
| 5 | ₹41,477.82 | ₹1,41,477.82 |
The fixed deposit formula
In a cumulative fixed deposit the interest is added to your balance at each compounding date and then earns interest itself. Most Indian banks compound quarterly, even when the rate is quoted per year.
A = P × (1 + r ÷ n)n × t · Interest = A − P
P is the deposit, r the annual rate as a decimal, n the compounding periods per year (4 for quarterly) and t the tenure in years.
Worked example
You deposit ₹1,00,000 for 5 years at 7% compounded quarterly. Each quarter earns 1.75%, over 20 quarters: 1.017520 = 1.41478. The deposit matures at ₹1,41,477.82, so you earn ₹41,477.82 in interest. The effective annual yield is 7.19%, slightly above the quoted 7%.
Effect of compounding frequency (₹1,00,000, 7%, 5 years)
| Compounding | Maturity |
|---|---|
| Yearly | ₹1,40,255.17 |
| Half-yearly | ₹1,41,059.88 |
| Quarterly | ₹1,41,477.82 |
| Monthly | ₹1,41,762.53 |
Tips for fixed deposits
- Compare effective yields, not just headline rates, when banks compound differently.
- Ladder deposits across several maturities so some money is always becoming available.
- Premature withdrawal usually carries a penalty of around 0.5–1% on the rate.
- Bank deposits in India are insured by DICGC up to ₹5 lakh per depositor per bank.
- Remember tax: the post-tax return can fall below inflation in higher brackets.
FD vs. other options
Fixed deposits offer a guaranteed return and protect your capital, which makes them suitable for emergency funds and short-term goals. For long horizons, equity mutual funds have historically beaten FD returns, but with ups and downs along the way.
Estimates for educational purposes, not financial advice.
Frequently asked questions
How is FD interest calculated?
Banks in India compound cumulative FDs quarterly: A = P × (1 + r/4)^(4t), where r is the annual rate and t the tenure in years. Interest is the maturity amount minus the deposit.
What is the difference between cumulative and non-cumulative FDs?
A cumulative FD reinvests interest until maturity, which this calculator shows. A non-cumulative FD pays interest out monthly or quarterly, so it does not compound and the total interest is lower.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. Banks deduct TDS when yearly interest exceeds the threshold unless you submit Form 15G/15H where eligible.
Do senior citizens get higher FD rates?
Most banks offer senior citizens an extra 0.25–0.75 percentage points. Enter the senior rate in the interest field to see the difference.