How is FD maturity value calculated?

A fixed deposit grows by compound interest using the formula FV = P × (1 + r÷m)^(m×t), where P is the deposit, r is the annual rate as a fraction, m is the number of times interest compounds per year, and t is the tenure in years. “Compounding” means interest is periodically added to the balance and then itself earns interest. Indian banks most commonly compound quarterly (m = 4). This calculator applies that formula for the rate, tenure, and compounding frequency you choose, and shows both the maturity value and the total interest earned.

Why does compounding frequency change the maturity value?

The more often interest is compounded, the sooner each bit of interest starts earning its own interest, which raises the effective annual yield above the stated rate. A 6.5% rate compounded quarterly produces a slightly higher maturity than the same 6.5% compounded annually, because four times a year the balance grows and the next quarter’s interest is calculated on that larger balance. The effect is modest at typical FD rates but grows with the rate and the tenure, which is why it is worth matching the compounding frequency when comparing two banks’ offers.

Is FD interest taxable?

Yes. Interest earned on a fixed deposit is fully taxable as “income from other sources” and is added to your total income, taxed at your applicable income-tax slab rate. Banks also deduct TDS (tax deducted at source) on FD interest once it crosses an annual threshold (₹40,000 for most depositors, ₹50,000 for senior citizens), at 10% if your PAN is on record. This calculator shows the gross maturity value before tax; your actual post-tax return depends on your income slab, so factor that in when comparing an FD against tax-advantaged options like PPF.

How is an FD different from a SIP or PPF?

An FD is a one-time deposit with a fixed, guaranteed return over a chosen term. A SIP invests a fixed amount monthly in market-linked mutual funds, where returns vary and are not guaranteed but can be higher over the long run. PPF is a 15-year government-backed scheme with tax-free interest and a deposit cap. The FD’s defining feature is certainty — you know the maturity value upfront — which makes it ideal for money that cannot take risk, while SIP and PPF suit longer-term wealth building. Many people hold all three for different goals.

Can I withdraw an FD before maturity?

Usually yes, but with a penalty. Most banks allow premature withdrawal of a fixed deposit and pay interest at a slightly lower rate than originally agreed, often with a penalty of 0.5–1%. Some FDs are specifically non-withdrawable in exchange for a marginally higher rate. Because breaking an FD early reduces the return, it is best to choose a tenure you can commit to, or to ladder several smaller FDs with staggered maturities so you can access part of the money without breaking the whole deposit. This calculator assumes the deposit is held to maturity.

Are the figures I enter stored anywhere?

No. The entire calculation runs in JavaScript inside your own browser. Nothing you enter — deposit amount, rate, tenure, or frequency — is uploaded, logged, or stored on any server. The tool is free, needs no login, and closing the tab clears everything. There is no account and no saved history.

Finance

FD Calculator

Work out the maturity value and interest on a fixed deposit at any rate, tenure, and compounding frequency. Free, in your browser, nothing uploaded.

By the Samastam teamLast updated 2026-06-18Editorial standards

Deposit details

Deposit amount (₹)

₹

Interest rate (% per year)

Senior citizens usually get an extra 0.25–0.5%. Use the rate quoted for your deposit.

Tenure (years)

Compounding

Most Indian banks compound FD interest quarterly.

Breakdown

Maturity value: —
Deposit amount: —
Total interest: —

Enter a deposit amount and tenure on the left. The maturity value and interest update here as you type.

A fixed deposit (FD) calculator works out what a one-time deposit grows to over a fixed term, using compound interest. Enter the deposit amount, the annual interest rate your bank offers, the tenure, and how often interest is compounded, and it shows the maturity value and the total interest earned. Because FD interest usually compounds quarterly in India, the effective return is slightly higher than the headline rate suggests. Everything runs in your browser, so nothing you type is sent anywhere.

What this is and why it matters

A fixed deposit is the most familiar savings instrument in India: you place a lump sum with a bank for a fixed term at a fixed rate, and the bank guarantees both the rate and the maturity value regardless of what markets do. It is the default home for money that must stay safe — an emergency fund, a parent’s retirement savings, money earmarked for a near-term goal. Because the return is guaranteed and known in advance, an FD sits at the opposite end of the risk spectrum from a market-linked SIP, and most households hold both for different purposes.

An FD calculator matters because the way interest compounds makes the real return slightly different from the advertised rate, and few people work it out by hand. Indian banks typically compound FD interest quarterly, meaning interest is calculated and added to the balance every three months, after which it too earns interest. A 6.5% rate compounded quarterly produces an effective annual yield a little above 6.5%, and over a multi-year term that difference adds up. The calculator shows the actual maturity value and the total interest, so you can compare a 6.5% FD compounded quarterly against, say, a 6.6% deposit compounded annually and see which genuinely pays more.

It also helps compare FDs against other options on equal footing. Seeing that ₹1 lakh in a 5-year FD at 6.5% matures to about ₹1.38 lakh lets you weigh it directly against what the same amount might do in a debt fund or a PPF account — trading the FD’s certainty against the potentially higher but variable returns elsewhere. For money that cannot take any risk, the FD’s guaranteed figure is exactly what you want to know before committing.

How to use this tool

Enter the deposit amount. Type the lump sum you plan to place in the fixed deposit into the amount field. This is a one-time deposit, not a monthly contribution — for regular monthly investing, use the SIP calculator instead. The breakdown updates as you type, with nothing submitted anywhere.

Set the interest rate. Type the annual FD rate your bank is offering, as a percentage. Rates vary by bank, tenure, and whether you are a senior citizen (who usually get an extra 0.25–0.5%), so use the specific rate quoted for your deposit. Small finance banks often offer higher FD rates than large public-sector banks.

Choose the tenure and compounding frequency. Set the term in years, then pick how often interest compounds — most Indian banks use quarterly compounding, but some offer monthly or annual. Quarterly is the common default and the right choice if you are unsure. The more frequent the compounding, the slightly higher the maturity value for the same rate.

Read the breakdown. The panel shows the maturity value — what you receive at the end of the term — and the total interest earned over the deposit. Adjust any input to compare scenarios: a longer tenure, a higher rate from another bank, or a different compounding frequency, and see how each changes the final amount before you lock your money in.

Examples and use cases

A five-year deposit for safety

A retiree in Kochi places ₹1 lakh in a 5-year FD at 6.5%, compounded quarterly. Entering ₹1,00,000, 6.5%, 5 years, and quarterly shows a maturity value of about ₹1.38 lakh — roughly ₹38,000 in guaranteed interest. Because the figure is fixed and known upfront, it is exactly the kind of certainty a retiree relies on for predictable income.

Comparing compounding frequencies

For the same ₹1 lakh at 6.5% over 5 years, quarterly compounding matures to about ₹1.38 lakh, while annual compounding yields slightly less, around ₹1.37 lakh. The gap is modest but real, and it shows why the compounding frequency — not just the headline rate — matters when comparing two banks’ FD offers that quote the same percentage.

A senior-citizen rate advantage

A senior citizen in Jaipur is offered 7% on a ₹5 lakh FD (0.5% above the regular 6.5%) for 3 years, compounded quarterly. The calculator shows a maturity of about ₹6.16 lakh against ₹6.05 lakh at 6.5% — the extra half-point earns roughly ₹11,000 more over three years, a concrete reason to use the senior-citizen rate where available.

A short-term parking of funds

A small business in Surat parks ₹10 lakh of surplus cash in a 1-year FD at 7% compounded quarterly, rather than leaving it in a current account earning nothing. The calculator shows a maturity of about ₹10.72 lakh — roughly ₹72,000 of interest for money that would otherwise have sat idle, with full liquidity restored in a year. For a business with predictable cash cycles, running idle balances through short FDs like this turns dead money into a modest but reliable return without locking funds away for long, and the calculator makes it easy to test different tenures against the dates the cash is actually needed.

Frequently asked questions

How is FD maturity value calculated?: A fixed deposit grows by compound interest using the formula FV = P × (1 + r÷m)^(m×t), where P is the deposit, r is the annual rate as a fraction, m is the number of times interest compounds per year, and t is the tenure in years. “Compounding” means interest is periodically added to the balance and then itself earns interest. Indian banks most commonly compound quarterly (m = 4). This calculator applies that formula for the rate, tenure, and compounding frequency you choose, and shows both the maturity value and the total interest earned.
Why does compounding frequency change the maturity value?: The more often interest is compounded, the sooner each bit of interest starts earning its own interest, which raises the effective annual yield above the stated rate. A 6.5% rate compounded quarterly produces a slightly higher maturity than the same 6.5% compounded annually, because four times a year the balance grows and the next quarter’s interest is calculated on that larger balance. The effect is modest at typical FD rates but grows with the rate and the tenure, which is why it is worth matching the compounding frequency when comparing two banks’ offers.
Is FD interest taxable?: Yes. Interest earned on a fixed deposit is fully taxable as “income from other sources” and is added to your total income, taxed at your applicable income-tax slab rate. Banks also deduct TDS (tax deducted at source) on FD interest once it crosses an annual threshold (₹40,000 for most depositors, ₹50,000 for senior citizens), at 10% if your PAN is on record. This calculator shows the gross maturity value before tax; your actual post-tax return depends on your income slab, so factor that in when comparing an FD against tax-advantaged options like PPF.
How is an FD different from a SIP or PPF?: An FD is a one-time deposit with a fixed, guaranteed return over a chosen term. A SIP invests a fixed amount monthly in market-linked mutual funds, where returns vary and are not guaranteed but can be higher over the long run. PPF is a 15-year government-backed scheme with tax-free interest and a deposit cap. The FD’s defining feature is certainty — you know the maturity value upfront — which makes it ideal for money that cannot take risk, while SIP and PPF suit longer-term wealth building. Many people hold all three for different goals.
Can I withdraw an FD before maturity?: Usually yes, but with a penalty. Most banks allow premature withdrawal of a fixed deposit and pay interest at a slightly lower rate than originally agreed, often with a penalty of 0.5–1%. Some FDs are specifically non-withdrawable in exchange for a marginally higher rate. Because breaking an FD early reduces the return, it is best to choose a tenure you can commit to, or to ladder several smaller FDs with staggered maturities so you can access part of the money without breaking the whole deposit. This calculator assumes the deposit is held to maturity.
Are the figures I enter stored anywhere?: No. The entire calculation runs in JavaScript inside your own browser. Nothing you enter — deposit amount, rate, tenure, or frequency — is uploaded, logged, or stored on any server. The tool is free, needs no login, and closing the tab clears everything. There is no account and no saved history.