How to use the FD Calculator
- Enter the amount you want to deposit.
- Enter the FD interest rate and tenure.
- Choose the compounding frequency and press Calculate FD.
FD Calculator formula
A = P × (1 + r/n)n × t
A = maturity amount, P = deposit, r = annual rate ÷ 100, n = compounding periods per year, t = years.
Worked example
₹1,00,000 for 5 years at 7% compounded quarterly: A = 1,00,000 × (1 + 0.07/4)20 ≈ ₹1,41,478. Interest earned ≈ ₹41,478.
Good to know
- FD interest is taxable at your income-tax slab. Banks deduct TDS if interest crosses the yearly limit.
- Senior citizens usually get about 0.25–0.50% extra.
- Breaking an FD early can attract a penalty and a lower rate.
Frequently asked questions
How is FD interest calculated?
Most banks use quarterly compounding: A = P(1 + r/4)^(4t). The interest is the maturity amount minus the deposit.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate. TDS may be deducted by the bank.
What is the effective yield of an FD?
It is the annual return after compounding. For 7% compounded quarterly, the effective yield is about 7.19%.
Can I use this for post office time deposits?
Yes. Post office time deposits also compound quarterly. Enter the current post office rate.
What happens if I break my FD early?
Banks usually pay the rate for the period actually completed, minus a penalty of around 0.5–1%.