FD Calculator

The FD Calculator shows the maturity value of a fixed deposit. It calculates how your deposit grows with compound interest over the chosen tenure.

FD Calculator

Currency
$

The amount you deposit.

%

The annual FD interest rate.

years

How long the FD is held.

What the result means

The maturity value is the total amount you receive at the end of the FD tenure. It includes your original deposit plus all interest earned through compounding.

How to use this calculator

  1. 1Enter the amount you want to deposit.
  2. 2Enter the FD interest rate offered by the bank.
  3. 3Enter the tenure in years.
  4. 4Select the compounding frequency.
  5. 5Press Calculate to see your maturity value.

The formula

The calculation uses a standard, verifiable formula. Here it is in its simplest form.

Maturity Value = P × (1 + r/n)^(n×t) Where: P = Deposit amount r = Annual rate (decimal) n = Compounding periods per year t = Tenure in years

What each variable means

SymbolNameDescription
PDepositThe amount you deposit in the FD.
rRateAnnual interest rate as a decimal.
nCompoundsCompounding frequency per year.
tTenureFD duration in years.

Step-by-step example

Example: ₹1,00,000 at 7% for 5 years (quarterly)

Deposit:₹1,00,000Rate:7%Tenure:5 yearsCompounding:Quarterly
  1. 1Quarterly rate = 7% / 4 = 1.75% = 0.0175
  2. 2Periods = 4 × 5 = 20
  3. 3Maturity = 1,00,000 × (1.0175)²⁰
  4. 4(1.0175)²⁰ ≈ 1.4148
  5. 5Maturity ≈ ₹1,41,478
  6. 6Interest = ₹1,41,478 − ₹1,00,000 = ₹41,478

Result

Maturity value ≈ ₹1,41,478

What changes the result

  • Higher deposit amounts increase maturity value proportionally.
  • Higher interest rates significantly increase returns.
  • Longer tenures allow more compounding.
  • More frequent compounding yields slightly higher returns.

Edge cases to be aware of

Unusual situations handled correctly

  • Zero interest rate means maturity equals deposit.
  • Very long tenures can nearly double the deposit.
  • Premature withdrawal may incur penalties.

Common mistakes

Avoid these errors

  • Forgetting that FD interest is taxable.
  • Using simple interest instead of compound.
  • Not considering the compounding frequency.

Assumptions

  • Interest rate remains constant for the full tenure.
  • No premature withdrawal.
  • Interest is reinvested (cumulative FD).

Limitations

  • Does not account for TDS on interest.
  • Actual rates vary by bank and tenure.
  • Senior citizen rates may be higher.

Frequently asked questions

What is a fixed deposit?+
A fixed deposit (FD) is a financial instrument where you deposit a lump sum for a fixed period at a fixed interest rate. It is considered a low-risk investment.
Is FD interest taxable?+
Yes. Interest earned on FDs is taxable as per your income tax slab. Banks may deduct TDS if interest exceeds a certain threshold.
What is the difference between cumulative and non-cumulative FD?+
In a cumulative FD, interest is reinvested and paid at maturity. In a non-cumulative FD, interest is paid out periodically (monthly, quarterly, etc.).

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