FD Calculator
Calculate the maturity amount and interest on a fixed deposit, with quarterly compounding like Indian banks use.
Maturity amount
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How the FD calculator works
A fixed deposit (FD) locks a lump sum for a fixed term at a fixed interest rate. Most Indian banks compound FD interest quarterly, so this calculator uses:
A = P × (1 + r/4)^(4 × years)
where P is the principal, r is the annual rate (as a decimal), and quarterly compounding means the rate is applied four times a year. The result shows your maturity amount and the interest earned on top of your deposit.
Simple vs compound interest
Simple interest is paid only on the principal. Compound interest — used for cumulative FDs — is paid on principal plus previously earned interest, so it grows faster. The longer the term, the bigger the difference.
The tax catch
FD interest is fully taxable — it's added to your income and taxed at your slab rate, and banks deduct TDS above a threshold. So a 7% FD gives a 30%-bracket taxpayer closer to 4.9% after tax. This calculator shows the pre-tax maturity amount. If you want tax-free safe growth over the long term, PPF may serve you better.
When an FD makes sense
- You have a lump sum and a goal within the next few years.
- You want guaranteed, predictable returns with zero market risk.
- You value the flexibility to choose any tenure and access options.
Frequently asked questions
How is FD interest calculated?
Most Indian banks compound fixed deposit interest quarterly. The maturity amount is A = P × (1 + r/4)^(4 × years), where P is the principal, r is the annual rate, and years is the deposit period.
Simple vs compound interest on an FD?
Simple interest is paid only on the principal. Compound interest, used by most banks for cumulative FDs, is paid on principal plus earned interest, so it grows faster. This calculator uses quarterly compounding.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, and banks deduct TDS above a limit. This calculator shows the pre-tax maturity amount.
Can I withdraw an FD early?
Most banks allow premature withdrawal but usually with a small penalty on the interest rate. These figures assume you hold the FD to maturity.