Recommended from this result
Next toolsAssumptions and methodology
Transparent calculation notes for FD Calculator.
Formula used
P is the deposit, r the annual rate, n the compounding or payout periods a year, m the tenure in months, k the whole periods in it and f the part of a period left over. Cumulative FDs reinvest interest until maturity, while non-cumulative FDs pay interest at the selected frequency and return principal at maturity.
Methodology
- Convert annual interest into the selected compounding or payout period.
- Compound the principal for cumulative mode; tenures under 6 months earn simple interest, and a broken period at the end earns simple interest on the compounded amount.
- Calculate periodic interest payouts without reinvestment for non-cumulative mode; monthly payouts use the discounted monthly value of quarterly interest, and a broken period at the end earns simple interest.
- Split the result into principal, interest, maturity value, and total payout.
Core assumptions
- Interest rate stays fixed through the FD tenure, entered in whole years (1–10) or months (3–120).
- Interest is reinvested until maturity for cumulative FD mode.
- The entered rate is pre-tax.
Not included
- TDS, tax slab impact, premature withdrawal penalty, and bank-specific rounding are excluded.
- Tenures in days (such as 444 days) are not modelled, and banks' broken-period rules can differ slightly.
- Non-cumulative interest payout behavior may differ by institution.
About FD Calculator
Guide1What is a Fixed Deposit (FD)?
A Fixed Deposit is one of the safest investment instruments in India where you deposit a lump sum amount with a bank or NBFC for a fixed tenure at a predetermined interest rate. The returns are guaranteed and not affected by market fluctuations.
FDs are insured up to ₹5 lakh per depositor per bank under DICGC (Deposit Insurance and Credit Guarantee Corporation), making them one of the most secure investment options available.
2FD Interest Calculation
FD interest can be calculated differently based on payout type:
Cumulative FD: A = P × (1 + r/n)^(n×t)
Non-cumulative FD: I = P × r × t, with interest paid at the selected frequency and principal returned at maturity.
- A = Maturity amount
- I = Total interest paid
- P = Principal deposit amount
- r = Annual interest rate (in decimal)
- n = Compounding or payout frequency
- t = Tenure in years (months ÷ 12 for a tenure in months)
Most Indian banks compound cumulative FD interest quarterly, while non-cumulative FDs are often chosen for regular income.
For tenures under 6 months the calculator uses simple interest, A = P × (1 + r × t). When a tenure ends part-way through a quarter, that broken period earns simple interest on the compounded amount, the usual bank practice; check your bank's terms for exact figures.
3How to Use This FD Calculator
- Step 1: Enter your deposit amount (e.g., ₹5,00,000)
- Step 2: Input the annual interest rate offered by your bank
- Step 3: Enter the tenure in years (up to 10) or months (3 to 120), for tenors such as 15 or 18 months
- Step 4: Select cumulative or non-cumulative payout mode
- Step 5: Select the compounding or payout frequency
- Step 6: View maturity amount, periodic payout, total payout, and total interest
4Types of Fixed Deposits
- Regular FD: Standard fixed deposit with flexible tenure (7 days to 10 years)
- Tax-Saving FD: 5-year lock-in FD; the deposit is deductible up to ₹1.5 lakh under Section 123 (formerly 80C), in the old tax regime only
- Senior Citizen FD: Usually 0.50% more for those aged 60+; some banks add more for longer tenures (for example, SBI pays 1.00% more for 5–10 years under WeCare, Sep 2026).
- Cumulative FD: Interest is compounded and paid at maturity
- Non-Cumulative FD: Interest is paid out monthly, quarterly, or annually
5Tax Implications on FD
FD interest is taxable at your slab rate in both the old and the new tax regime.
- TDS: Banks deduct 10% TDS when your total interest from that bank in a tax year exceeds ₹50,000, or ₹1,00,000 for resident senior citizens (Section 393(1) of the Income-tax Act, 2025; formerly Section 194A). Without a PAN the rate is 20%.
- No-TDS declaration: If your tax for the year is nil, give the bank Form 121 (it replaced Forms 15G and 15H from 1 April 2026).
- Tax-saving FD: The deposit (up to ₹1.5 lakh, shared with PPF, ELSS and other eligible investments) is deductible under Section 123 (Section 80C before April 2026) only in the old regime. The interest is taxable.