How the FD Calculator works

A Fixed Deposit (FD) lets you invest a lump sum with a bank or NBFC for a fixed tenure at a pre-agreed interest rate. Because the rate is locked in when you open the deposit, the return is predictable regardless of market movements. Enter your principal, the annual interest rate, how often interest compounds, and the tenure to see your maturity value and total interest instantly.

Formula used

• A = Maturity value (principal + interest)
• P = Principal (amount invested)
• r = Annual interest rate (as a decimal, e.g. 7% = 0.07)
• n = Number of times interest is compounded per year (Yearly = 1, Half-Yearly = 2, Quarterly = 4, Monthly = 12)
• t = Tenure in years

This is the standard compound-interest formula used by banks and financial platforms. Most Indian banks compound FD interest quarterly, which is why Quarterly is the default here.

Worked example

For a principal of ₹5,00,000 at 7% p.a. compounded quarterly (n = 4) for 5 years: A = 5,00,000 × (1 + 0.07/4)^{4 × 5} = 5,00,000 × (1.0175)²⁰ ≈ ₹7,07,389, giving about ₹2,07,389 in interest. Choosing a more frequent compounding option (e.g. Monthly) raises the maturity slightly, because interest starts earning interest sooner.

Things to keep in mind

• Interest earned on FDs is taxable, and banks deduct TDS once your interest crosses the prescribed threshold, so the amount you actually receive can be lower than the figure shown.
• The maturity value assumes the deposit is held for the full tenure. Premature withdrawal usually attracts a lower rate and a penalty.
• Rates differ by bank, tenure and depositor type (senior citizens often earn more), so use this as a planning estimate and confirm the exact rate with your bank.

How it helps you

Compare interest rates across banks, test different compounding options and tenures, and see exactly how your deposit grows year by year before you commit.