FD Calculator — Fixed Deposit Maturity & Interest

This free FD calculator works out the maturity value and interest earned on a fixed deposit. Most bank FDs compound quarterly using A = P(1 + r/4)^(4t), so the effective yield is slightly higher than the simple quoted rate — this tool applies that compounding for you. Remember that FD interest is taxable at your income slab and banks deduct TDS once it crosses the annual threshold, so the displayed maturity is pre-tax. All figures are computed locally in your browser for privacy.

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Interest earned
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Effective yield
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How is FD maturity amount calculated?

A Fixed Deposit (FD) is a financial instrument where you deposit a lump sum with a bank for a fixed tenure at a guaranteed interest rate. The maturity value depends on whether interest is compounded or paid out periodically.

For compounding FDs, the formula is A = P × (1 + r/n)nt, where P is the principal, r is the annual rate, n is the compounding frequency (quarterly is most common for bank FDs), and t is the tenure in years. For a ₹1,00,000 FD at 7% for 3 years compounded quarterly: A = ₹1,00,000 × (1 + 0.07/4)12 ≈ ₹1,23,144. The total interest earned is ₹23,144.

FDs are low-risk instruments guaranteed by deposit insurance (up to ₹5 lakh in India per bank). The trade-off is lower returns compared to equity. They are ideal for capital preservation, emergency funds, or short-to-medium term goals where capital safety is paramount.

Related tools

SIP calculator → Compound interest → EMI calculator →

Related Guide: Learn more about SIP vs FD

How fixed-deposit interest compounds

Most bank FDs compound quarterly using A = P(1 + r/4)^(4t), so the effective yield is slightly higher than the quoted simple rate. A ₹1,00,000 deposit at 7% for 5 years returns about ₹1,41,478 with quarterly compounding versus ₹1,35,000 under simple interest — roughly ₹6,500 more from compounding alone.

Tax and TDS

FD interest is fully taxable at your income-tax slab. Banks deduct TDS at 10% once interest across your branches crosses ₹40,000 in a year (₹50,000 for senior citizens); submit Form 15G/15H if your total income is below the taxable limit to avoid it. The displayed maturity value here is pre-tax.

Laddering and premature withdrawal

Breaking an FD early usually costs a 0.5–1% rate penalty. To stay liquid without that penalty, split a lump sum across FDs maturing in successive years — an FD ladder — so a portion matures regularly while the rest keeps earning the higher long-tenure rate.

⚠️ Common Mistakes to Avoid

Frequently asked questions

Is FD interest taxable?

Yes, in most cases, interest earned from Fixed Deposits is subject to income tax.

How is FD interest calculated?

Interest can be simple or compounded (usually quarterly), depending on the bank's policy.

Related guides

SIP vs FD Returns → What is SIP? →
Reviewed by the ToolsmithPro editorial team · Last updated June 2026. Every calculation and conversion runs entirely in your browser — your inputs are never uploaded, stored or shared. Formulas and methodology are documented on our about page; spot an error? tell us and we'll fix it.