FD Calculator — Instantly calculate your Fixed Deposit maturity, total interest earned, and effective yield for smarter financial planning. Compare different compounding options, see tax impact, and enjoy a modern, SEO-optimized interface. Fast, private, and mobile-friendly for 2025 and beyond.
What is a Fixed Deposit (FD)? Your Guide to Secure Investing
A Fixed Deposit (FD) is a popular and secure investment instrument offered by banks and non-banking financial companies (NBFCs) in India. It allows you to deposit a lump sum of money for a predetermined period, known as the tenure, at a fixed rate of interest. Unlike market-linked investments like mutual funds or stocks, the returns on an FD are guaranteed and not affected by market fluctuations, making it one of the safest investment options available. [1, 2]
At the end of the tenure, you receive your principal amount back along with the accumulated interest. This makes FDs an excellent choice for risk-averse investors, senior citizens, and anyone looking to achieve specific short-term to medium-term financial goals, such as saving for a down payment on a house, funding a child’s education, or building an emergency fund. An FD Calculator is an essential tool that helps you forecast the exact maturity amount you will receive, allowing you to plan your finances with precision and confidence. [3, 4]
How to Use the FD Calculator
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Enter Your FD Details
Fill in your total deposit amount, the investment tenure in years, the annual interest rate offered by the bank, and how often the interest is compounded.
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Add Optional Tax Rate
To see the post-tax returns, enter your applicable income tax slab rate. This will show you the impact of taxes on your total earnings.
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Analyze Your Instant Results
The calculator provides a complete breakdown: your invested amount, total interest earned, the final maturity value, your effective annual yield, and the estimated tax deduction.
The Power of Compounding in Fixed Deposits
The core principle that makes an FD a powerful savings tool is compound interest. It is the process where you earn interest not only on your initial principal but also on the accumulated interest from previous periods. This creates a snowball effect, making your money grow faster over time. The frequency of compounding plays a significant role in your final returns.
How Compounding Frequency Affects Your FD Returns
Banks offer different compounding frequencies for their FDs. The more frequently the interest is compounded, the higher your effective return will be. Our FD Calculator allows you to compare these options instantly.
- Monthly Compounding: Interest is calculated and added to your principal every month.
- Quarterly Compounding: Interest is added every three months. This is the most common frequency offered by banks in India.
- Half-Yearly Compounding: Interest is added every six months.
- Yearly Compounding: Interest is added only once at the end of each year.
Example: Let’s say you invest ₹1,00,000 for 5 years at a 7% interest rate.
- With yearly compounding, your maturity value would be ₹1,40,255.
- With quarterly compounding, your maturity value would be ₹1,41,478.
- With monthly compounding, your maturity value would be ₹1,41,763.
Understanding Fixed Deposit (FD) Taxation in India
While FDs are a secure investment, it’s crucial to understand that the interest you earn is not tax-free. The interest income from a Fixed Deposit is fully taxable and must be declared in your income tax return under the head “Income from Other Sources.” [5, 6] It is taxed according to your applicable income tax slab.
What is TDS on FD?
TDS stands for Tax Deducted at Source. As per income tax rules, if the interest earned on your FDs from a single bank exceeds a certain threshold in a financial year, the bank is required to deduct tax before crediting the interest to your account. [7]
- The TDS threshold is ₹40,000 for regular individuals.
- For senior citizens (aged 60 and above), the threshold is higher at ₹50,000.
The standard rate of TDS deduction is 10%. However, if you have not provided your PAN (Permanent Account Number) to the bank, the TDS rate will be 20%.
How to Manage TDS: Form 15G and 15H
If your total annual income is below the taxable limit, but your FD interest exceeds the TDS threshold, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to the bank. [8] By submitting these forms at the beginning of the financial year, you declare that your income is not taxable, and you request the bank not to deduct TDS.
Our FD Calculator includes an optional ‘Tax Rate’ field to help you visualize the impact of taxes on your investment, showing you both the gross interest and the net maturity amount after accounting for potential tax deductions.
FD Calculator: Features, Advantages & Limitations
Compounding Frequency Options
Supports yearly, half-yearly, quarterly, and monthly compounding to provide precise calculations for any bank’s FD scheme. [4]
Tax Impact Analysis
Includes an optional tax field to instantly calculate your post-tax maturity value, giving you a realistic picture of your net returns. [5]
Advantages
- Completely free, with no login required.
- 100% private and secure; your data is never stored.
- Calculates effective yield for easy comparison.
- Clear, real-time breakdown of all key metrics.
Limitations
- Assumes a fixed interest rate for the entire tenure.
- Does not account for premature withdrawal penalties.
- TDS calculation is an estimate; actual bank rules may vary.
- Results are for planning and estimation, not financial advice.
How Does the FD Calculator Work?
The FD Calculator uses the standard mathematical formula for compound interest to precisely estimate the future value of your investment. It takes your inputs and processes them to provide a comprehensive financial summary.
- Compound Interest Formula: The core of the calculation is `A = P × (1 + r/n)^(nt)`, where:
- A is the final maturity amount.
- P is the principal deposit amount.
- r is the annual interest rate in decimal form.
- n is the number of times that interest is compounded per year.
- t is the tenure in years.
- Effective Yield: This shows your true annual return on investment, accounting for the effect of compounding. A higher compounding frequency results in a higher effective yield.
Frequently Asked Questions about Fixed Deposits
An FD calculator is a digital tool that helps you estimate the maturity amount, total interest earned, and effective yield on a Fixed Deposit investment. It uses your principal amount, tenure, interest rate, and compounding frequency to provide accurate projections. [3]
Compounding frequency determines how often the interest earned is added back to your principal amount. More frequent compounding (e.g., monthly or quarterly) results in a slightly higher maturity value and effective yield compared to less frequent compounding (e.g., yearly), because your interest starts earning interest sooner. [4]
Yes, the interest income from a Fixed Deposit is fully taxable in India. It is added to your total income and taxed as per your applicable income tax slab. Banks will also deduct TDS if your interest income exceeds ₹40,000 (or ₹50,000 for senior citizens) in a financial year. [5, 6]
Yes, this calculator is universal. You can use it for FDs from any bank (like SBI, HDFC, ICICI) or NBFC by simply entering the specific interest rate, tenure, and compounding frequency they offer for their scheme.
A Fixed Deposit (FD) involves a one-time lump sum investment for a fixed period. A Recurring Deposit (RD) involves making regular, fixed monthly investments for a specific tenure. This FD Calculator is for lump sum investments only.
Yes, one of the main advantages of a Fixed Deposit is that the interest rate is locked in for the entire tenure. The returns are guaranteed and are not subject to market risks, unlike mutual funds or stocks. [1]
Absolutely. All calculations are performed entirely within your web browser. No financial data you enter is ever sent to our servers, stored, or tracked. Your privacy is guaranteed.