Fixed deposit (FD) calculator: maturity amount and interest
A fixed deposit pays a set interest rate for a set time. This calculator shows the maturity amount and the interest you earn, with the compounding that banks use.
How to use this calculator
- Enter the deposit amount.
- Enter the yearly interest rate.
- Enter the tenure in years and extra months.
- Choose how often interest compounds (banks in India usually use quarterly) and read the result.
Worked examples
Example 1
₹5,00,000 at 7% for 5 years, compounded quarterly.
You enter
| Deposit amount | ₹5,00,000 |
|---|---|
| Interest rate (per year) | 7% |
| Years | 5 |
| Extra months | 0 |
| Interest compounded | Quarterly |
You get
| Maturity amount | ₹7,07,389 |
|---|---|
| Interest earned | ₹2,07,389 |
| Effective yearly yield | 7.186% |
Example 2
The same deposit for 3 years 6 months.
You enter
| Deposit amount | ₹5,00,000 |
|---|---|
| Interest rate (per year) | 7% |
| Years | 3 |
| Extra months | 6 |
| Interest compounded | Quarterly |
You get
| Maturity amount | ₹6,37,458 |
|---|---|
| Interest earned | ₹1,37,458 |
| Effective yearly yield | 7.186% |
How it works
Compounding means interest is added to the deposit and then earns interest too. More frequent compounding gives a slightly higher yield than the quoted rate.
Interest on FDs is taxable and banks may deduct TDS above certain limits. The figures here are before tax, so your take-home gain is lower.
Formula
Maturity = P x (1 + r / m)^(m x t), where r is the yearly rate, m the number of compounding periods a year and t the years.
Common questions
Is the rate guaranteed?
Yes for the tenure, subject to the bank's terms.
What if I break the FD early?
Banks usually charge a penalty and pay a lower rate.
Is cumulative the same as reinvestment?
A cumulative FD pays everything at maturity, which is what this models.
Learn more
Read the lesson Money, inflation and interest on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.