How the FD Calculator Works
This FD calculator compounds your deposit at the interest rate and frequency you choose — quarterly compounding is the most common convention used by Indian banks, though many also offer monthly, half-yearly or yearly compounding options.
Enter the deposit (principal) amount, the annual interest rate offered by your bank, the tenure in years, and how often interest is compounded. The calculator instantly shows your interest earned and maturity amount.
Because FD interest rates vary between banks and change over time, this calculator uses the rate you enter rather than any live bank data — always confirm the current rate with your bank before investing.
Formula Used
The calculator uses the standard compound interest formula:
A = P × (1 + r/n)^(n×t)- AMaturity amount
- PPrincipal (deposit amount)
- rAnnual interest rate (as a decimal)
- nNumber of times interest compounds per year
- tTenure in years
Example Calculation
Suppose you deposit a lump sum in a 5-year FD with quarterly compounding.
- Deposit Amount₹1,00,000
- Interest Rate7% p.a.
- Tenure5 years
- CompoundingQuarterly
- ResultMaturity Amount ≈ ₹1,41,478 (Interest Earned ≈ ₹41,478)
Important Assumptions
- Interest is compounded at the frequency you select and credited to the principal, not paid out — this calculator models a cumulative (compound-interest) FD, not a non-cumulative FD that pays out interest periodically.
- The interest rate you enter is assumed to remain constant for the entire tenure. Banks may offer different rates for different tenures or investor categories (e.g. senior citizens).
- This calculator does not account for TDS (tax deducted at source) on FD interest or income tax on interest earned, which is taxable as per your income slab.
- Premature withdrawal penalties, if any, are not factored into this calculation.