About the FD Calculator
This FD calculator works out what an Indian bank fixed deposit pays you. Enter the deposit amount, the interest rate quoted by the bank, the tenure in years and months, and choose a cumulative FD (interest reinvested and paid at maturity) or a non-cumulative FD that pays interest out every month or quarter. Tick the senior citizen option to add the extra 0.50% most banks offer depositors aged 60 and above.
Indian banks compound cumulative FDs quarterly, so the effective annual yield is higher than the quoted rate — a 7% FD yields about 7.19% a year. For very short deposits under six months, banks generally pay simple interest instead, which the calculator applies automatically. Payout FDs pay simple interest on the principal; the monthly option uses the monthly rate equivalent to quarterly compounding, which is why it is a little below one-third of the quarterly payout.
Results are before tax. FD interest is added to your income and taxed at your slab rate. The Finance Act 2025 raised the TDS thresholds from 1 April 2025 so that banks deduct TDS only once interest from one bank in a financial year exceeds ₹50,000, or ₹1,00,000 for senior citizens; from 1 April 2026 TDS on interest sits in section 393 of the Income-tax Act, 2025, which replaced section 194A, and this calculator assumes the same thresholds carry over for FY 2026-27. Exact bank figures can differ slightly because of day-count conventions, and the tenure is treated as whole months (months ÷ 12 years) rather than exact days.
With the default inputs, the maturity amount is ₹141,477.82. Change any value above to recalculate instantly.
How to use the fd calculator
- 1Enter the amount you want to put in the fixed deposit.
- 2Enter the bank’s FD interest rate for your chosen tenure.
- 3Set the tenure in years and any extra months.
- 4Turn on the senior citizen option if the depositor is 60 or older.
- 5Choose cumulative, monthly or quarterly payout and read the maturity amount and interest.
Formula and method
For a cumulative FD the bank adds interest to the deposit every quarter, so the maturity amount is the principal P multiplied by (1 + r/4) raised to the number of quarters, 4t, where t is the tenure in years (months ÷ 12). Deposits shorter than six months earn simple interest, A = P × (1 + r × t).
Non-cumulative FDs pay interest out instead of reinvesting it, so the principal stays constant. The quarterly payout is P × r/4. The monthly payout uses the monthly rate that compounds to the same quarterly rate, which is slightly less than one-third of the quarterly payout. The senior citizen option adds 0.50 percentage points to the rate before any calculation.
- A
- Maturity amount
- P
- Deposit (principal)
- r
- Annual interest rate as a decimal
- t
- Tenure in years (total months ÷ 12)
Worked examples
₹1,00,000 for 5 years at 7% (cumulative)
Twenty quarters at 1.75% each: ₹1,00,000 × 1.0175²⁰ = ₹1,41,477.82. The quarterly compounding lifts the effective yield to about 7.19% a year, so you earn ₹41,478 in interest.
Senior citizen, ₹2,00,000 for 1 year at 6.8% + 0.5%
The senior citizen rate is 7.3%. Four quarters at 1.825% grow ₹2,00,000 to ₹2,15,004.56, earning ₹15,004.56 of interest in the year.
Monthly income FD: ₹5,00,000 for 3 years at 7%
A monthly payout FD pays about ₹2,899.82 each month — slightly less than ₹5,00,000 × 7% ÷ 12 = ₹2,916.67 because the rate is discounted to its monthly equivalent. Over 36 months you receive ₹1,04,393 and get the ₹5,00,000 back at maturity.
Short-term: ₹50,000 for 3 months at 6%
Deposits under six months earn simple interest: ₹50,000 × 6% × 3/12 = ₹750, so you receive ₹50,750 at maturity.
Frequently asked questions
How is FD interest calculated in India?+
Most Indian banks compound cumulative fixed deposit interest quarterly using A = P(1 + r/4)^(4t). Deposits shorter than six months usually earn simple interest. Non-cumulative FDs pay simple interest out monthly or quarterly.
Is FD interest taxable?+
Yes. FD interest is added to your total income and taxed at your slab rate. Banks deduct TDS at 10% (with PAN) when interest from a bank in a financial year exceeds the threshold — ₹50,000 for most depositors and ₹1,00,000 for senior citizens, as raised by the Finance Act 2025 from 1 April 2025. From 1 April 2026 the rule sits in section 393 of the Income-tax Act, 2025.
How can I avoid TDS on my FD?+
If your total income is below the taxable limit, submit Form 15G (under 60) or Form 15H (senior citizens) to the bank at the start of each financial year. TDS is only an advance tax; you still declare the interest in your return.
Are bank fixed deposits safe?+
Deposits in DICGC-insured banks, including FDs, are covered up to ₹5 lakh per depositor per bank (in the same right and capacity), covering principal and interest together. Spreading larger sums across banks keeps each within the limit.
Can I withdraw an FD before maturity?+
Most FDs allow premature withdrawal, but banks typically charge a penalty of 0.5%–1% on the rate applicable for the period the deposit actually stayed. Tax-saver FDs have a 5-year lock-in and cannot be broken early.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.