FD Calculator
FD maturity = P × (1 + r ÷ 4)^(4 × years) with quarterly compounding, so ₹1 lakh at 7% for 5 years grows to ₹1,41,478, earning ₹41,478 in interest. The calculator also handles monthly or quarterly interest payouts, extra days and senior citizen rates.
By the Calculators With Steps team · Updated November 10, 2026 · How we check our math
- Principal
- ₹1,00,000
- Total interest
- ₹41,478
- Effective annual yield
- 7.19%7% compounded quarterly
- TDS in year 1 (this FD alone)
- Nilinterest ₹7,186 is within the ₹50,000 TDS limit
- Principal₹1,00,000
- Interest₹41,478
- Principal
- Interest earned
Step-by-step working
- Rate per period = 7% ÷ 4 = 0.0175; compounding periods = 20
- A = P × (1 + r/n)^(periods)
- A = 1,00,000 × (1 + 0.0175)^20 = ₹1,41,478
- Interest = ₹1,41,478 − ₹1,00,000 = ₹41,477.82
Show year-by-year growth
| Year | Opening balance | Interest | Closing balance |
|---|---|---|---|
| 1 | ₹1,00,000 | ₹7,186 | ₹1,07,186 |
| 2 | ₹1,07,186 | ₹7,702 | ₹1,14,888 |
| 3 | ₹1,14,888 | ₹8,256 | ₹1,23,144 |
| 4 | ₹1,23,144 | ₹8,849 | ₹1,31,993 |
| 5 | ₹1,31,993 | ₹9,485 | ₹1,41,478 |
Leftover days beyond a full compounding period earn simple interest, as most banks calculate it. Banks may differ slightly in day counts. FD interest is taxed at your slab rate even when it is paid only at maturity.
How to use the FD calculator
- Deposit amount – the sum you will place in the fixed deposit.
- Interest rate – the bank’s annual rate for your tenure. Rates differ by tenure, so check the exact slab (for example, 444 days or 5 years).
- Tenure – years, months and days. Enter odd tenures like 400 or 444 days in the days box.
- Interest payout – cumulative reinvests interest and pays everything at maturity. Monthly or quarterly payout sends interest to your savings account.
- Compounding – quarterly is standard at Indian banks. Change it only if your bank’s terms say otherwise.
- Depositor – choose senior citizen to add the extra rate (0.50% by default) and use the higher TDS limit.
FD formula
For a cumulative fixed deposit:
A = P × (1 + r/n)^(n × t)
- A = maturity amount
- P = principal (deposit)
- r = annual interest rate ÷ 100
- n = compounding periods per year (4 for quarterly)
- t = tenure in years
When the tenure is not a whole number of quarters, banks compound for the complete quarters and pay simple interest for the leftover days, and the calculator does the same. For deposits of less than 6 months, most banks pay simple interest: ₹1 lakh at 7% for 3 months earns ₹1,750. In Excel, the cumulative formula is =P*(1+r/4)^(4*t).
Worked example
₹1,00,000 at 7% for 5 years, compounded quarterly:
- Rate per quarter = 7 ÷ 4 = 1.75%, and there are 20 quarters
- A = 1,00,000 × (1.0175)^20 = ₹1,41,478
- Interest = ₹41,478, an effective yield of 7.19% a year
| ₹1 lakh at 7% for 5 years | Maturity amount | Interest |
|---|---|---|
| Compounded monthly | ₹1,41,763 | ₹41,763 |
| Compounded quarterly | ₹1,41,478 | ₹41,478 |
| Compounded yearly | ₹1,40,255 | ₹40,255 |
| Quarterly payout (₹1,750 × 20) | ₹1,00,000 returned | ₹35,000 |
Reinvesting interest earns ₹6,478 more than taking it out every quarter, because interest earns interest. Choose a payout only if you need the income.
Cumulative or monthly payout FD?
A cumulative FD suits money you will not need until a fixed date, such as a fee payment or a house deposit. A non-cumulative FD with monthly or quarterly payout suits retirees who want regular income. The monthly payout is the quarterly interest discounted to a monthly amount: P × (r/12) ÷ (1 + r/12). For ₹10 lakh at 7% that is ₹5,800 a month. If you need a fixed amount every month but want to build savings, compare an RD or a monthly SIP.
Post office time deposit rates
India Post’s time deposits are backed by the Government of India, and their rates are set every quarter. For October to December 2026 they are:
| Post office time deposit | Rate (compounded quarterly) |
|---|---|
| 1 year | 6.9% |
| 2 years | 7.0% |
| 3 years | 7.1% |
| 5 years | 7.5% |
Post office time deposits compound quarterly but pay the interest out once a year instead of reinvesting it, so ₹1 lakh in the 5-year deposit earns about ₹7,714 a year. To estimate one year’s interest, enter the rate with quarterly compounding and a 1-year tenure. The 5-year deposit also qualifies for the Section 80C deduction under the old regime.
Tax and TDS on FD interest
FD interest is fully taxable at your slab rate. Banks deduct TDS at 10% when your interest from that bank crosses ₹50,000 in a financial year (₹1 lakh for senior citizens), so ₹10 lakh at 7% would see about ₹7,186 deducted in year one. TDS is not the final tax. If you are in the 20% or 30% slab you pay the difference when you file, and if your income is below the taxable limit you can submit Form 15G or 15H. Use the income tax calculator to see your slab.
Tips to earn more from FDs
- Ladder your deposits. Split a large sum across 1-, 2- and 3-year FDs so some money matures every year.
- Lock in long tenures when rates are high, and shorter ones when rates are expected to rise.
- Check premature withdrawal penalties, usually 0.5% to 1% off the rate, before you choose a long tenure.
- Compare after-tax returns. For goals more than five years away, a PPF account gives tax-free interest.
FD Calculator: frequently asked questions
How is FD interest calculated?
Banks use compound interest: A = P × (1 + r/n)^(n × t), where P is the deposit, r the annual rate, n the number of compounding periods a year (4 for quarterly) and t the tenure in years. ₹1 lakh at 7% for 5 years gives 1,00,000 × (1.0175)^20 = ₹1,41,478.
How much interest will I get on ₹10 lakh in an FD?
At 7% compounded quarterly, ₹10 lakh earns ₹71,859 in the first year and grows to ₹14,14,778 in 5 years. With a monthly payout you would receive about ₹5,800 a month instead, and get the ₹10 lakh back at maturity.
How do I calculate FD interest for 444 days?
Enter 0 years, 0 months and 444 days. At 7%, ₹1 lakh compounds for four full quarters and earns simple interest on the remaining 79 days, giving a maturity value of ₹1,08,810.
When is TDS deducted on FD interest?
From 1 April 2025, a bank or post office deducts TDS at 10% only when your total interest from it in a financial year exceeds ₹50,000, or ₹1 lakh for senior citizens. Without a PAN the rate is 20%. If your total income is below the taxable limit, submit Form 15G (or 15H if you are 60 or older) to avoid TDS.
Why is the monthly payout less than the annual interest divided by 12?
Banks calculate FD interest quarterly and discount it when they pay it monthly, because you get the money earlier. On ₹1 lakh at 7%, the monthly payout is about ₹580 rather than ₹583, and a quarterly payout is ₹1,750.
Do senior citizens get a higher FD rate?
Yes. Most banks add 0.25% to 0.50% for depositors aged 60 or more. At 7.5% instead of 7%, ₹1 lakh for 5 years grows to ₹1,44,995 instead of ₹1,41,478. Senior citizens also have a higher TDS limit of ₹1 lakh.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, every year it accrues, even in a cumulative FD that pays out only at maturity. Only the 5-year tax-saver FD qualifies for a Section 80C deduction, and only under the old tax regime.
How we checked this page: every figure in the examples and FAQs above is produced by this calculator and verified by automated tests against known answers, and the rules and rates come from the sources below. Last updated . Spotted a problem? Tell us.