FD Calculator (Fixed Deposit)
FD Calculator (Fixed Deposit)
What a fixed deposit pays: the maturity value if interest is reinvested, or the interest paid out each quarter or month if you choose a payout option. Compounded quarterly by default, as Indian banks do.
Fixed deposit
$1,00,000 for 5 years at 7%, compounded quarterly, interest reinvested
How the FD figures are worked out
Quarterly payout = P × r ÷ 400; monthly payout = P × r′ ÷ 1200, r′ = r × 3 ÷ [1 + g + g2], g = 1 + r ÷ 1200
- P
- the deposit
- r
- the annual rate in %
- q, m
- whole quarters in the tenure, and the months left over, which earn simple interest (the broken period)
- r′
- the discounted rate for monthly payouts, in the form Axis Bank publishes: monthly interest is paid in advance of the quarter, so the rate is reduced to match
- after tax
- the same formulas at r × (1 − tax), because tax is taken from each credit of interest. Today’s money divides each payment by (1 + inflation)months ÷ 12. The real return is the yearly rate those after-tax, inflation-adjusted payments earn on the deposit: for a cumulative deposit, (A ÷ P)12 ÷ months ÷ (1 + inflation) − 1
Worked example
$1,00,000 for 5 years at 7%, compounded quarterly, interest reinvested
r ÷ 400 = 0.0175; q = 20 quarters; no months left over
1.017520 = 1.4148
A = 1,00,000 × 1.4148 = $1,41,478; interest $41,478
Effective annual yield = 1.01754 − 1 = 7.19%
5,00,000 for 5 years at 7%, by payout option
| Option | At maturity | Paid out | Total interest |
|---|---|---|---|
| Cumulative (paid at maturity) | $7,07,389 | — | $2,07,389 |
| Quarterly payout | $5,00,000 | $8,750 a quarter | $1,75,000 |
| Monthly payout (discounted rate) | $5,00,000 | $2,900 a month | $1,73,983 |
1,00,000 for 5 years at 7%, by compounding
| Compounding | Maturity value |
|---|---|
| Yearly | $1,40,255 |
| Half-yearly | $1,41,060 |
| Quarterly | $1,41,478 |
| Monthly | $1,41,763 |
Cumulative or payout — and what the bank actually does
In a cumulative (reinvestment) deposit the interest is added to the deposit every quarter and itself earns interest, and you receive everything at maturity. Axis Bank’s published terms, for example, say interest is “compounded anniversary quarter and paid at maturity”, and this calculator follows that. Where the tenure is not a whole number of quarters, the months left over earn simple interest.
With a payout option the interest is paid to your account instead. Quarterly payouts are the quarter’s simple interest. Monthly payouts are paid at a slightly lower, discounted rate, because the bank pays part of each quarter’s interest early; SBI and Axis Bank both say so, and this page uses the formula Axis Bank publishes (7.20% becomes 7.156% for monthly payout). Other banks may discount differently, and some offer monthly payouts only on deposits of a year or more.
Your bank’s figure may differ by a few rupees, because banks count actual days (Axis Bank divides by 365) where this page counts months. Interest is taxable income, and banks deduct TDS once interest passes the threshold unless an eligible depositor submits the self-declaration form; breaking a deposit early usually costs a penalty on the rate. For a deposit you add to every month use the RD calculator; for other compounding set-ups the compound interest calculator.
The figure that matters most is the last one under the result: the real return, after tax and inflation. Take a 7% deposit compounded quarterly, a depositor whose marginal rate on interest is 30%, and 5% inflation. Tax takes 30% of each quarter’s interest, so the deposit grows at 4.99% a year while prices grow at 5%. The real return is −0.009% a year: nothing. $1,00,000 left for five years matures at $1,27,572 after tax, which buys what $99,956 buys today. At this page’s defaults, with no tax and 4% inflation, the same deposit earns a real 3.06% a year. A fixed deposit protects the number in your account; whether it protects what that number buys depends on your tax rate and on inflation. The chart shows the deposit’s value, the amount deposited, and the after-tax value in today’s money.
For a payout deposit there is no chart, deliberately: nothing grows, and a line that added the interest paid out would suggest it is still in the deposit and still earning. The deposit itself comes back worth less. $5,00,000 returned after five years of 5% inflation buys what $3,91,763 buys today. For payouts the real return is the rate that the after-tax payments and the returned deposit earn together, in today’s money. For quarterly payouts it is shown only when the tenure is a whole number of quarters. The tax figures are a simplification: tax is taken from each credit of interest, and your real tax depends on your country, slab and thresholds. This is arithmetic on the figures you enter, not financial advice.
Frequently asked questions
How is FD maturity calculated?
A = P × (1 + r ÷ 400)quarters for quarterly compounding. $1,00,000 at 7% for 5 years matures at $1,41,478.
Why is the monthly payout rate lower than the FD rate?
Because monthly interest is paid before the end of each quarter, when it would otherwise compound. Banks reduce the rate so the two options are equivalent; SBI calls it a discounted rate.
Is FD interest taxable?
Yes, it is taxable income in India, and the bank may deduct TDS. Tax rules and thresholds change, so check the current ones.
Why doesn’t this match my bank’s figure exactly?
Banks count the actual days in the deposit and may round differently. The difference is usually a few rupees.
Does a fixed deposit beat inflation?
Before tax, usually by a little. After tax, it depends on your rate: at 7% compounded quarterly, a 30% tax rate and 5% inflation, the real return is −0.009% a year, so $1,00,000 for five years comes back worth $99,956 in today’s money. Enter your own tax rate and inflation above to see yours.
Related calculators
References
- Axis Bank. Terms and Conditions — Fixed Deposits and Recurring Deposits (accessed September 2026): cumulative deposits “compounded anniversary quarter and paid at maturity”; the discounted monthly-payout rate = ROI × 3 ÷ [1 + (1 + ROI/12) + (1 + ROI/12)2], with the worked example 7.20% → 7.156%; recurring deposit interest “applied on a quarterly compounding basis”.
- State Bank of India. Fixed Deposit — product page (accessed September 2026): interest payable quarterly or at maturity; monthly interest “on discounted rate”; TDS deducted unless the declaration form is submitted.
- Reserve Bank of India. Master Direction — Reserve Bank of India (Interest Rate on Deposits) Directions, 2016, DBR.Dir.No.84/13.03.00/2015-16 (as updated): premature withdrawal is paid at the rate for the period the deposit actually ran; the option to receive interest on maturity with compounding vests with the depositor.
- Central-bank inflation targets used as default inflation by currency: Reserve Bank of India (4% CPI, flexible inflation targeting framework); U.S. Federal Reserve (2% PCE); European Central Bank (2%); Bank of England (2% CPI); Bank of Canada (2%); Reserve Bank of Australia (2–3%); Bangko Sentral ng Pilipinas (3% ± 1). Actual inflation often runs above target.