Fixed Deposit Calculator

What Is a Fixed Deposit Calculator?

A fixed deposit (FD) locks a lump sum with a bank or company for a set term at a fixed interest rate. A fixed deposit calculator estimates the interest earned and the maturity amount so you can compare tenures and payout options before committing. The Fixed Deposit Calculator handles both cumulative and simple interest deposits. Bank rates are indicative and vary by tenor, depositor age, and institution, so confirm the exact rate before booking.

How the Calculation Works

For a cumulative FD, interest is compounded and paid at maturity:

$$A = P\left(1 + \frac{r}{n}\right)^{n t}$$

For a simple or non-cumulative FD, interest is calculated only on the principal and can be paid out periodically:

$$I = P \times r \times t$$

Where P is the principal, r is the annual rate as a decimal, n is the number of compounding periods per year, t is the term in years, A is the maturity amount, and I is the total interest. The payout per interest period is the total interest divided by n times t.

Worked Example

Deposit ₹1,00,000 at 7.5% for 3 years with quarterly compounding, so n is 4 and t is 3:

$$A = 100000\left(1 + \frac{0.075}{4}\right)^{4 \times 3} = 100000 \times 1.01875^{12} \approx 1,24,972$$

The interest earned is about ₹24,972, and the payout per quarter is roughly ₹2,081. Under simple interest the same deposit would earn ₹22,500, which shows the effect of compounding.

Related Tools

Compare compounding with the Compound Interest Calculator, review the non-compounding case with the Simple Interest Calculator, and plan a tax-free alternative with the SSY Calculator.

Frequently Asked Questions

Is fixed deposit interest taxable?

Yes. FD interest is added to your income and taxed at your slab rate, even when it is reinvested and paid only at maturity. Banks may deduct tax at source on the interest, and the final liability is settled when you file your return.

What is the TDS threshold on FD interest?

Under Section 194A, banks deduct TDS at 10% once interest from a single bank crosses ₹50,000 in a financial year, or ₹1,00,000 for senior citizens. Without a valid PAN the rate can be 20%. These limits are indicative and can change, so confirm the current rules.

Are there deductions on interest income?

Section 80TTA allows a deduction of up to ₹10,000 on savings account interest for non-senior taxpayers. Senior citizens may claim up to ₹50,000 under Section 80TTB, which can include FD interest. Both limits are subject to change in each budget.

What is the difference between cumulative and non-cumulative deposits?

A cumulative deposit reinvests interest and pays the full maturity value at the end of the term. A non-cumulative deposit pays interest monthly, quarterly, or annually, which suits investors who need regular income.

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Fixed Deposit Calculator

What Is a Fixed Deposit Calculator?

How the Calculation Works

Worked Example

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Frequently Asked Questions

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