Fixed Deposit Calculator — FD Returns

Principal Amount

₹

₹1,000₹50,00,000

Interest Rate

% p.a.

115

Tenure

months

1120

Compounding Frequency

Interest Payout

Maturity Amount

₹0

Total Interest

₹0

Principal Invested

₹0

Effective Yield

0.00%

Corpus Breakdown

Principal vs. interest earned

Principal

₹0

Interest Earned

₹0

Maturity Amount

₹0

What is a FD?

A Fixed Deposit Calculator helps you estimate the maturity amount, total interest earned, and periodic payouts from an FD before you commit your money. Fixed Deposits remain one of India's most trusted savings instruments — offering guaranteed returns, complete capital protection, and flexible tenure options from a few months to ten years. Yet manually computing the exact returns, especially with different compounding frequencies and payout modes, involves multi-step arithmetic that is easy to get wrong.

The FD calculator eliminates that friction. Enter your deposit amount, the interest rate quoted by your bank, the tenure in months, and your preferred compounding frequency — and the calculator immediately shows your maturity value along with a full amortisation schedule showing how your balance or interest payout evolves every period.

What makes FD returns non-trivial to compute is the compounding effect. A ₹5 lakh deposit at 7.5% p.a. compounded quarterly for 3 years does not simply return ₹5,00,000 + (₹5,00,000 × 7.5% × 3) = ₹6,12,500. Because interest is added to the principal each quarter, the actual maturity amount is approximately ₹6,26,400 — about ₹13,900 more due to compounding alone. This difference grows substantially for larger principals or longer tenures.

The calculator also handles payout FDs — where you receive interest monthly or quarterly instead of waiting for maturity. This is a critical distinction: payout FDs use simple interest (since the interest is not reinvested), while cumulative FDs use compound interest. Choosing the right mode depends on whether you need regular income now or prefer to maximise the corpus at maturity.

For investors comparing FDs with market-linked products like SIPs, the SIP Calculator can help you model equity mutual fund returns against the guaranteed FD corpus for the same tenure.

How to use this FD calculator

Enter your Principal Amount — the lump-sum amount you plan to deposit. Most Indian banks accept FDs from ₹1,000; the slider goes up to ₹50 lakh. Enter the exact amount or drag the slider to adjust.
Set the Interest Rate — enter the annual interest rate quoted by your bank for the chosen tenure, in % p.a. Rates vary by bank, tenure bracket, and customer category (regular vs. senior citizen). SBI's 1–2 year rate currently sits around 6.8%; small finance banks like AU or Ujjivan offer 7.5–8.5% for similar tenures.
Choose the Tenure — enter the deposit period in months. Common tenures are 12 (1 year), 24 (2 years), and 36 (3 years). Tax-saving FDs have a fixed 60-month (5-year) tenure. Use the slider to explore how incremental tenure changes affect the maturity value.
Select Compounding Frequency — choose Monthly, Quarterly, or Annually to match your bank's compounding schedule. Most Indian banks compound quarterly; some offer monthly compounding on specific schemes.
Pick the Interest Payout Mode — choose Cumulative if you want maximum corpus at maturity; choose Monthly Payout or Quarterly Payout if you need regular income. Switching modes updates the entire result and schedule instantly.
Read the results and amortisation schedule — the result card shows maturity amount, total interest, and effective yield. Scroll down to the amortisation table for a period-by-period breakdown of how your balance grows (cumulative) or how much is paid out each period (payout modes). Use the rate sensitivity bars to see how a 1–2% rate difference changes your outcome.

Formula & Methodology

### Cumulative FD (compound interest)

A = P × (1 + r⁄n)ⁿᵗ

Where:
- A = Maturity amount (₹)
- P = Principal amount deposited (₹)
- r = Annual interest rate as a decimal (e.g. 7% → 0.07)
- n = Number of compounding periods per year (12 = monthly, 4 = quarterly, 1 = annual)
- t = Tenure in years (e.g. 18 months → 1.5)

Worked example — Cumulative FD, quarterly compounding:

P = ₹2,00,000 | r = 7.5% p.a. | Tenure = 2 years | n = 4 (quarterly)

A = 2,00,000 × (1 + 0.075⁄4)^(4×2)
A = 2,00,000 × (1.01875)^8
A = 2,00,000 × 1.16054
A ≈ ₹2,32,108

Total Interest = ₹2,32,108 − ₹2,00,000 = ₹32,108

### Payout FDs (simple interest per period)

Since interest is paid out and not reinvested, payout FDs use simple interest:

Monthly payout = P × r ÷ 12

Quarterly payout = P × r × 3 ÷ 12 (= P × r ÷ 4)

Total interest = P × r × t

Worked example — Monthly payout FD:

P = ₹5,00,000 | r = 7% p.a. | Tenure = 3 years

Monthly payout = 5,00,000 × 0.07 ÷ 12 = ₹2,917 per month
Total interest over 3 years = 5,00,000 × 0.07 × 3 = ₹1,05,000
Principal returned at maturity = ₹5,00,000

### Effective yield

For cumulative FDs, effective yield is derived from the maturity formula:

Effective Yield = (A ÷ P)^(1⁄t) − 1 (expressed as %)

This equals the offered rate for a standard cumulative FD, confirming there is no hidden reduction. The Simple Interest Calculator can be used to quickly contrast simple vs. compound interest returns for the same inputs.

### Assumptions
- The interest rate is fixed for the entire tenure (no floating rate FDs)
- Compounding is applied uniformly throughout — no partial-period adjustments for the final period
- For quarterly compounding with non-quarter-aligned tenures (e.g. 7 months), the calculator uses the continuous equivalent: monthly rate = (1 + r/n)^(n/12) − 1
- TDS and income tax on interest are not deducted — use the TDS Calculator to estimate post-deduction amounts

Frequently Asked Questions

What is a Fixed Deposit and how does it work?

A Fixed Deposit (FD) is a financial instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. The deposit earns interest — either paid out periodically or compounded and returned at maturity — and the principal is fully returned at the end of the tenure. FDs are one of the most popular savings instruments in India because they offer guaranteed returns, capital protection, and flexibility in tenure from 7 days to 10 years.

How does the Fixed Deposit Calculator compute the maturity amount?

For cumulative FDs, the calculator uses the compound interest formula A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual interest rate, n is the compounding frequency (monthly, quarterly, or annually), and t is the tenure in years. For payout FDs (monthly or quarterly), it applies simple interest for each period since the interest is not reinvested. The effective yield is then back-calculated to show your annualised return on investment.

What is the difference between cumulative and non-cumulative FDs?

In a cumulative FD, interest is compounded and paid along with the principal at maturity — making it ideal for wealth creation over the long term. In a non-cumulative (payout) FD, interest is paid out monthly or quarterly to your bank account, giving you a regular income stream while the principal stays locked in. Cumulative FDs earn more total interest due to compounding, while payout FDs suit retirees or those who need periodic cash flow.

What is the difference between a Fixed Deposit and a Recurring Deposit?

An FD involves a single lump-sum deposit made upfront, whereas a Recurring Deposit (RD) requires you to deposit a fixed amount every month throughout the tenure. FDs are better if you already have a large sum to invest, while RDs suit those who want to build savings gradually from monthly income. Use our [Recurring Deposit Calculator](/recurring-deposit-calculator/) to see RD returns side by side with FD returns.

Is the interest earned on FDs taxable in India?

Yes, FD interest is fully taxable under the head 'Income from Other Sources' and is added to your total income and taxed at your applicable slab rate. Banks deduct TDS at 10% if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens) across all branches. If your total income is below the taxable threshold, you can submit Form 15G (or 15H for senior citizens) to avoid TDS deduction. Use our [TDS Calculator](/tds-calculator/) to estimate the TDS applicable on your FD interest.

Which compounding frequency gives the highest FD returns?

Monthly compounding produces the highest maturity amount because interest is added to the principal more frequently, giving each subsequent period a higher base to earn interest on. The difference between monthly and quarterly compounding is typically small — for ₹1 lakh at 7% for 3 years, monthly compounding yields approximately ₹236 more than quarterly. For most practical purposes, the bank's offered rate and tenure matter far more than the compounding frequency.

What is the minimum FD amount in India?

The minimum FD amount varies by bank — most public sector banks like SBI and Bank of Baroda allow FDs starting at ₹1,000, while some private banks require a minimum of ₹5,000 to ₹10,000. Small Finance Banks and NBFCs sometimes offer FDs from ₹1,000 but at higher interest rates to attract deposits. Tax-saving FDs (under Section 80C) typically have a minimum of ₹100 and a maximum of ₹1.5 lakh per financial year with a mandatory 5-year lock-in.

How do FD returns compare to SIP mutual fund returns?

FD returns are fixed and guaranteed — currently ranging from 6.5% to 8.5% p.a. for most Indian banks — making them suitable for capital preservation. SIP returns in equity mutual funds are market-linked and historically average 10–14% p.a. over long periods but carry volatility risk. Use our [SIP Calculator](/sip-calculator/) to compare your expected SIP corpus against an FD maturity amount for the same investment horizon.

How to calculate FD maturity amount manually?

For a cumulative FD, use A = P × (1 + r/n)^(n×t) where P is principal, r is the annual rate as a decimal, n is compounding frequency per year (12 for monthly, 4 for quarterly, 1 for annual), and t is tenure in years. For example, ₹1,00,000 at 7% p.a. compounded quarterly for 2 years: A = 1,00,000 × (1 + 0.07/4)^(4×2) = 1,00,000 × (1.0175)^8 ≈ ₹1,14,869. The calculator handles all this instantly for any combination of inputs.

Can I use the FD calculator for tax-saving fixed deposits?

Yes — a tax-saving FD follows the same compound interest formula as a regular FD, typically with quarterly compounding and a 5-year lock-in period. Enter the principal (up to ₹1.5 lakh for 80C benefit), the offered rate, 60 months as the tenure, quarterly as the compounding frequency, and cumulative as the payout mode. Keep in mind that tax-saving FDs cannot be prematurely withdrawn, unlike regular FDs.

Does the FD calculator account for inflation?

The calculator shows nominal returns — the actual rupee value of your maturity amount — but does not adjust for inflation by default. If the FD rate is 7% and inflation is 5%, your real return is approximately 2% p.a. To understand the inflation-adjusted value of your FD corpus, use our [Inflation Calculator](/inflation-calculator/) alongside this tool.

What happens to FD interest in payout mode — monthly vs quarterly?

In monthly payout mode, interest is calculated as P × r ÷ 12 and credited to your savings account each month. In quarterly payout mode, interest for 3 months (P × r × 3/12) is credited every quarter. Because the paid-out interest is not reinvested, payout FDs earn less total interest than equivalent cumulative FDs over the same tenure. The principal is returned in full at maturity in both payout modes.