FD Calculator
A fixed deposit (FD) is a safe savings product where you deposit a lumpsum with a bank for a fixed tenure and earn a guaranteed rate of interest. Use this FD calculator to find your maturity amount and the interest you'll earn — enter the deposit amount, interest rate and tenure to see your returns instantly, with interest compounded quarterly the way banks calculate it.
- Invested
- ₹1,00,000
- Interest Earned
- ₹41,478
Maturity Value
₹1,41,478
- Invested71%
- Interest Earned29%
Formula
M = P × (1 + r/4)^(4 × t)
- M
- Maturity amount at the end of the tenure.
- P
- Principal — the lumpsum you deposit.
- r
- Annual interest rate ÷ 100.
- t
- Deposit tenure in years.
Most Indian banks compound FD interest quarterly, which is why the rate is divided by 4 and the power is 4 × t. This calculator shows the gross maturity value before any tax (TDS) on the interest earned.
Worked example
Suppose you place a fixed deposit of ₹1,00,000 at an interest rate of 7% per annum for a tenure of 5 years, with quarterly compounding.
- Deposit Amount (P)
- ₹1,00,000
- Interest Rate (p.a.)
- 7%
- Tenure
- 5 years
Your deposit matures to about ₹1,41,478 — meaning roughly ₹41,478 of interest earned on top of the ₹1,00,000 you deposited, thanks to quarterly compounding.
Year-by-year growth
Based on the default FD Calculator values above. The final year matches the maturity value shown by the calculator — change the inputs to project your own plan.
- Total invested
- ₹1,00,000
- Interest earned
- ₹41,478
- Maturity value
- ₹1,41,478
- Value / invested
- 1.41×
Over 5 years, your ₹1,00,000 grows to about ₹1,41,478 — roughly 1.41× what you put in, thanks to compounding.
| Year | Invested | Interest earned | Maturity value |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,186 | ₹1.07 Lakh |
| 2 | ₹1,00,000 | ₹14,888 | ₹1.15 Lakh |
| 3 | ₹1,00,000 | ₹23,144 | ₹1.23 Lakh |
| 4 | ₹1,00,000 | ₹31,993 | ₹1.32 Lakh |
| 5 | ₹1,00,000 | ₹41,478 | ₹1.41 Lakh |
How the FD calculator works
Move the sliders for deposit amount, interest rate and tenure to see your maturity value and the interest earned update in real time, along with a breakdown of principal versus interest. Because interest compounds quarterly, longer tenures earn noticeably more — the chart shows how the interest portion grows over time.
Why choose a fixed deposit
Fixed deposits suit money you want to keep safe with a predictable return — an emergency buffer, a short-term goal, or the stable part of a portfolio. The rate is locked in when you book, so market movements don’t affect your return. For higher long-term growth you’d typically look at market-linked options, but FDs trade some return for certainty.
Tips for FD investors
- Ladder your FDs across different tenures so some mature regularly.
- Compare rates — small banks and longer tenures often pay more.
- Use the right tenure to avoid premature-withdrawal penalties.
- Plan for tax on the interest, especially in higher slabs.
Frequently asked questions
How is FD maturity calculated?
FD maturity uses compound interest M = P × (1 + r/4)^(4×t), where P is the deposit, r is the annual rate and t is the tenure in years. Banks usually compound quarterly, so the rate is divided by 4 and applied four times a year. This calculator applies it instantly.
How often is FD interest compounded?
Most banks compound fixed deposit interest quarterly, though some offer monthly or other payout options. Quarterly compounding means the interest earned each quarter is added to the principal, so you earn interest on interest. This calculator assumes quarterly compounding.
Is FD interest taxable?
Yes. Interest earned on a fixed deposit is taxable as income, and banks may deduct TDS if the interest crosses the prescribed threshold in a year. This calculator shows the gross maturity value before tax — your in-hand return may be lower depending on your tax slab.
Can I withdraw an FD before maturity?
Most FDs allow premature withdrawal, usually with a small penalty and a slightly lower interest rate. Some tax-saving FDs have a lock-in and can't be withdrawn early. Check your bank's terms before booking the deposit.
Is a fixed deposit safe?
FDs are among the safer savings options — the rate is guaranteed at booking and bank deposits in India are insured up to a limit per depositor per bank. The trade-off is that returns are typically lower than market-linked investments like mutual funds.