🏦 FD Calculator
Calculate Fixed Deposit maturity value and interest earned across all compounding frequencies.
Frequently Asked Questions
How do I use the FD Calculator?
Enter your Principal Amount, the Annual Interest Rate, the Tenure (in years, months or days) and select the Compounding Frequency, then click Calculate to see the maturity amount, interest earned, effective yield and a year-by-year growth breakdown with charts.
How is FD maturity amount calculated?
Maturity Amount = P × (1 + r/n)n×t, where P is the principal, r is the annual interest rate (as a decimal), n is the number of compounding periods per year, and t is the tenure in years. Interest Earned = Maturity Amount − P.
How does compounding frequency affect FD returns?
More frequent compounding (monthly or quarterly vs annually) results in a slightly higher maturity amount for the same nominal rate, because interest is added to the principal more often and starts earning interest sooner. The "Effective Yield" shows the actual annualised return after accounting for compounding frequency.
Is FD interest taxable?
Yes, FD interest is added to your total income and taxed as per your income tax slab. As per current rules, banks deduct TDS at 10% if the interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), unless you submit Form 15G/15H where applicable. These thresholds and rates are set by tax law and can change — confirm the current limits with your bank or a tax advisor before relying on them.
What is the difference between FD and RD?
A Fixed Deposit (FD) involves investing a lump sum amount once for a fixed tenure. A Recurring Deposit (RD) involves depositing a fixed amount every month over the tenure. Use our RD Calculator to compute returns on monthly deposits.
Can I enter a tenure in months or days?
Yes — select "Months" or "Days" from the tenure unit dropdown. The calculator converts the tenure to years internally (months ÷ 12, days ÷ 365) before applying the compound interest formula, and breaks down any partial final year as "Remaining" in the year-by-year table.
What is the difference between cumulative and non-cumulative FDs?
A cumulative FD (what this calculator models) reinvests the interest each compounding period, so it grows along with the principal and is paid out only at maturity. A non-cumulative FD pays out the interest at regular intervals (monthly, quarterly, etc.) as income instead of reinvesting it — its total payout will be lower than a cumulative FD's maturity amount for the same principal and rate, since the paid-out interest stops earning further interest.
What happens if I break my FD before maturity?
Most banks allow premature withdrawal but apply a penalty, typically 0.5% to 1% lower interest than the rate applicable for the period the deposit was actually held (not the originally booked rate). This calculator shows the maturity value for the full tenure — for an early-exit estimate, re-run it with the shorter holding period and the reduced rate your bank quotes.