Worked example
Example with the default numbers — change them above.
Deposit amount: ₹5,00,000 · Interest rate (a year): 7% · Tenure: 60 months · How do you want the interest?: All at maturity (cumulative) · Interest added to the deposit: Quarterly · Senior citizen (adds 0.5% to the rate): No
A ₹5 L fixed deposit at 7% for 5 yrs grows to ₹7.07 L, so you earn ₹2.07 L in interest.
| Maturity amount | ₹7.07 L · on ₹5 L deposited |
|---|---|
| Total interest | ₹2.07 L · 41.5% of your deposit |
| Effective yearly return | 7.19% · 7% quoted, added quarterly |
| Matures in | Oct 2031 · 5 yrs after the start month |
| Real return after inflation | 1.12% · Before tax, after 6% inflation |
How the FD Calculator works
- Enter the amount you will deposit, the interest rate your bank quotes and the tenure in months.
- Choose whether interest stays in the deposit (cumulative) or is paid to you every month, quarter, six months or year.
- For a cumulative FD, interest is added to the balance at the compounding you choose (banks usually use quarterly) for every full period, then simple interest is added for any part-period left at the end.
- For a payout FD, each payout is the deposit times the yearly rate divided by the number of payouts in a year, and the full deposit comes back at maturity.
- If you pick an income-tax slab, the calculator takes that share of the interest as tax and shows what you keep, then adjusts the yield for inflation to show your real return.
Cumulative FD maturity amount
A = P × (1 + r / n) ^ (n × t)
A = amount at maturity
P = amount you deposit
r = yearly interest rate as a decimal (7% is 0.07)
n = times interest is added in a year (quarterly is 4)
t = tenure in yearsAssumptions and limits
- The rate is yours to set. The 7% starting rate and the 0.5% senior citizen bonus are placeholders from this site's data file, not any bank's current offer.
- Cumulative deposits compound quarterly unless you change it. A leftover part-period earns simple interest, the way most banks treat odd tenures. Your bank's figure can differ by a few rupees.
- Payout deposits are modelled at the full rate. Some banks pay slightly less on monthly payouts; that is not modelled.
- Deposits of under six months are still compounded every full quarter here. Banks such as SBI pay simple interest on actual days for short deposits, so the result can be a few rupees higher than the bank's.
- Bank deposits are insured by DICGC up to ₹5 lakh per depositor per bank, interest included; amounts above that at one bank are not insured.
- Tax uses the slab rate you pick on all the interest (before 4% cess and surcharge). In real life tax is due each year on interest that accrues, even for a cumulative FD, and TDS is only an advance.
- The maturity month assumes the start month and year you choose. Premature withdrawal, penalties and the exact day count are not modelled.
- Real return uses a steady inflation figure you choose: (1 + return) ÷ (1 + inflation) − 1.
Frequently asked questions
How do I calculate FD maturity amount?
For a cumulative deposit the maturity amount is A = P × (1 + r/n)^(n×t), where P is the deposit, r the yearly rate, n the number of times interest is added in a year and t the tenure in years. Indian banks usually add interest quarterly. For example, ₹5 lakh at 7% for 5 years grows to about ₹7.07 lakh. Enter your own numbers above to see yours.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, whether you receive it every year or at maturity. Banks deduct TDS on all of it, 10% with your PAN or 20% without, once your interest at one bank crosses a yearly limit. TDS is only an advance, so you may owe more or get a refund when you file. If your tax will be nil, Form 121 (which replaced Forms 15G and 15H) stops the deduction.
Which is better, a cumulative FD or a payout FD?
A cumulative FD reinvests interest, so the same deposit grows to more over the same tenure and suits goals that are years away. A payout FD gives regular income, which can suit retirees, but the interest is not reinvested, so total interest is lower. Switch the payout option above to compare the two for your numbers.
What is the difference between the FD rate and the effective yield?
The quoted rate is a yearly figure, but if interest is added every quarter you also earn interest on interest. That makes the effective yearly return a little higher than the quoted rate. At 7% added quarterly it is about 7.19%. This calculator shows the effective yield so you can compare deposits that add interest at different intervals.
Do senior citizens get a higher FD rate?
Most banks pay senior citizens a higher rate, commonly around 0.5 percentage points more, though it varies by bank and tenure. Switching on the senior citizen option adds 0.5 points to your rate as a starting figure. Confirm the exact rate with your bank, because special tenures and offers can differ.
What is my real return on an FD after inflation?
Real return is what your money earns after prices rise. If an FD earns 7% before tax and inflation is 6%, the real return is under 1%, and lower after tax. Open the advanced options, pick your tax slab and set expected inflation to see your own figure. A positive real return means your buying power is growing.
Sources
- Income Tax Department: Income-tax Act, 2025, section 393 – TDS on interest (old section 194A)
- DICGC (RBI subsidiary): deposit insurance of up to ₹5 lakh per depositor per bank
Logic and rates last verified on .
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See worked examples
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