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FD Calculator

Enter the deposit, the rate and the tenure. The interest option matters more than it looks: a cumulative FD that compounds quarterly earns noticeably more than one that pays interest out every month at the same headline rate.

Include any senior-citizen extra your bank offers

Enter the deposit, rate and tenure to see the maturity amount.

How to use this tool

  1. Enter the amount you are depositing.
  2. Enter the interest rate your bank offers for that tenure. Senior citizens should enter the higher senior-citizen rate.
  3. Choose the interest option. Cumulative (reinvest) FDs at most Indian banks compound quarterly; payout FDs send interest to your account monthly or quarterly.
  4. Enter the tenure in years and months.
  5. Read the maturity amount and interest earned, or for a payout FD, the interest you receive each period.

Formula and method

Cumulative FD

A = P × (1 + r ÷ n)^(n × t)
A
— maturity amount
P
— amount deposited
r
— annual rate as a decimal
n
— compounding periods per year — 4 for quarterly
t
— tenure in years

Interest earned each quarter is added to the deposit and earns interest itself in later quarters.

Payout FD

Interest per period = P × r ÷ periods per year

Because interest leaves the deposit as soon as it is earned, nothing compounds and the total over the tenure is simple interest.

Worked examples

₹1,00,000 for 5 years at 7%, compounded quarterly

  1. Quarterly rate: 0.07 ÷ 4 = 0.0175
  2. Quarters: 5 × 4 = 20
  3. (1.0175)^20 = 1.414778
  4. Maturity: 1,00,000 × 1.414778 = ₹1,41,478

₹41,478 of interest — an effective yield of 7.19% a year on a 7% headline rate.

The same deposit with monthly interest payout

  1. Monthly interest: 1,00,000 × 0.07 ÷ 12 = ₹583
  2. Over 60 months: 583.33 × 60 = ₹35,000

₹583 a month, ₹35,000 in total, and your ₹1,00,000 back at the end — ₹6,478 less than the cumulative option.

Notes and limitations

  • Many banks pay a slightly lower, discounted rate on monthly payout FDs so that the monthly amount matches the quarterly-compounding equivalent. If your bank quotes a monthly payout figure, trust it over this estimate.
  • Interest is taxable at your income-tax slab rate. Banks deduct TDS once interest crosses the threshold for the year; from 1 April 2026, people whose tax for the year will be nil can avoid this by submitting Form 121, which replaced Forms 15G and 15H.
  • Deposits shorter than six months earn simple interest paid at maturity, as at Indian banks, and the calculator switches to that automatically. For a longer tenure that is not a whole number of quarters, banks differ on the broken period; this calculator compounds it fractionally, as most bank calculators do.
  • Deposits with a bank are insured by the DICGC up to ₹5 lakh per depositor per bank, including interest. The same calculation applies to term deposits, CDs and GICs elsewhere, but the insurance limit does not.

Frequently asked questions

How is FD interest calculated?

For a cumulative FD, with compound interest: A = P × (1 + r ÷ n)^(n × t). Most Indian banks compound quarterly, so n is 4. For a payout FD, the interest each period is simply the deposit times the rate divided by the number of payouts a year.

Which is better — a cumulative or a payout FD?

A cumulative FD earns more because the interest compounds. A payout FD suits people who need a regular income from their savings, such as retirees. If you do not need the income, the cumulative option is the better return.

Is FD interest tax-free?

No, except for tax-saving FDs, where the amount deposited — not the interest — can qualify for a deduction under the old tax regime. FD interest is added to your income and taxed at your slab rate.

What happens if I break an FD early?

Most banks pay the rate applicable to the period the money actually stayed, minus a penalty, often 0.5% to 1%. The maturity figure here assumes the deposit is held for the full tenure.

Can I use this for a US CD or a Canadian GIC?

Yes. The arithmetic is the same — choose the compounding frequency your bank states, often monthly or daily for CDs, and switch the currency.

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