Fixed Deposit (FD) Calculator
Plan your safe investments. Calculate exactly how much interest your lump-sum deposit will earn over time.
FD Details
Maturity Details
Total Investment
₹10,000
Total Interest Earned
₹0
Maturity Amount
₹0
Current Fixed Deposit & Reference Rates (India)
As of September 2026Sources: Reserve Bank of India (rbi.org.in) monetary policy statements, National Savings Institute (PPF notification), and public rate cards from major Indian banks.
Every formula on this page is built to standard Indian banking and regulatory conventions (RBI guidelines, IBA formulas, current FY tax rules) and independently verified with worked numeric examples before publishing.
What is this Calculator?
A Fixed Deposit (FD) Calculator is an investment tool used to determine the guaranteed returns you will earn when you deposit a lump sum of money into a bank for a fixed period.
FDs are incredibly popular safe-haven investments because they offer a guaranteed rate of return unaffected by market volatility. This tool helps you visualize exactly how much your initial deposit will grow by the time it reaches maturity.
How it Works
The calculator uses the compound interest formula to generate precise maturity amounts:
A = P(1 + r/n)^(n*t)
- A = Maturity Amount
- P = Principal Deposit Amount
- r = Annual Interest Rate (in decimal)
- n = Compounding frequency per year (e.g., 4 for Quarterly)
- t = Tenure in years
Most banks compound FD interest quarterly, meaning interest is added to your principal every 3 months, accelerating your growth.
Example Calculation
Suppose you deposit ₹1,00,000 into a 5-year Fixed Deposit that offers an interest rate of 6.5%, compounded quarterly.
- Your initial investment is ₹1,00,000.
- Over 5 years, you will earn approximately ₹38,042 in interest.
- Your total maturity amount will be approximately ₹1,38,042.
Benefits of Using This Tool
- Guaranteed Planning: Unlike market-linked investment calculators, the numbers here are guaranteed by the bank at account opening, making FDs ideal for capital-protection goals.
- Compounding Comparison: Toggle between monthly, quarterly, and yearly compounding to see how the frequency affects your final maturity amount.
- Laddering Strategy: Use this tool to plan an FD ladder — splitting your investment across multiple FDs with staggered maturities for better liquidity and reinvestment flexibility.
Frequently Asked Questions (FAQs)
Is FD interest taxable in India?
Yes. Interest earned on a Fixed Deposit is fully taxable as 'Income from Other Sources' at your applicable income tax slab rate. Banks deduct TDS at 10% if your total interest income from that bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), but you remain liable for tax on the full amount as per your slab.
What happens if I withdraw my FD before maturity?
Most Indian banks allow premature withdrawal but charge a penalty, typically a 0.5% to 1% reduction in the interest rate that was applicable for the period the deposit was actually held. Some tax-saver FDs (5-year lock-in) do not allow premature withdrawal at all.
What is the difference between an FD and a Tax-Saver FD?
A regular FD offers flexible tenure and liquidity (with an early-withdrawal penalty). A Tax-Saver FD has a mandatory 5-year lock-in with no premature withdrawal, but the deposited amount (up to ₹1,50,000) qualifies for a deduction under Section 80C — though the interest earned is still fully taxable.
Does compounding frequency make a big difference to my FD returns?
It has a modest but real effect. More frequent compounding (monthly vs. annually) results in slightly higher returns for the same nominal interest rate, since interest starts earning interest sooner. Most Indian banks compound FD interest quarterly.
Sources & References
- Investopedia - Financial Calculation Standards
- Consumer Financial Protection Bureau (CFPB) Guidelines