FD Calculator: Fixed Deposit Calculator
Compute FD maturity, find required principal, or compare two deposits. Covers all compounding frequencies.
🏦 What is a Fixed Deposit Calculator?
A Fixed Deposit (FD) calculator is a financial tool that computes the maturity value of a bank fixed deposit using the compound interest formula A = P(1 + r/n)^(nt), where P is the principal, r is the annual rate, n is the number of compounding periods per year, and t is the tenure in years. It removes the need for manual arithmetic and instantly shows how much your deposit will grow to, how much interest you will earn, and what the effective annual yield is.
Fixed deposits are one of the most popular savings instruments in India and across Asia because they offer guaranteed returns, capital protection, and a predictable income stream. Whether you are parking an emergency fund in a short-term 6-month FD, building toward a goal with a 3-year cumulative deposit, or comparing rates across banks before committing, this calculator covers all three use cases through its three modes: Maturity, Reverse FD, and Compare FDs.
A common misconception is that all FDs with the same stated rate earn the same interest. This is not true. An FD at 7.5% compounded quarterly actually earns an Effective Annual Rate (EAR) of 7.71%, while the same 7.5% compounded annually earns exactly 7.50%. Over a 5-year deposit of 10 lakhs, the difference in compounding alone adds up to over 6,000 in additional interest. This calculator shows the EAR for every calculation so you can compare deposits on a true apples-to-apples basis.
The Reverse FD mode is particularly useful for goal-based planning. If you need 5 lakhs in 3 years for a home renovation and your bank offers 7.5% quarterly, the reverse calculator tells you exactly how much to deposit today, which is roughly 4.02 lakhs. You do not need to guess or trial-and-error the principal. The Compare mode is equally practical when you are choosing between two banks or two FD tenures that offer different rates and compounding frequencies.
📐 Formula
A = P × (1 + r ÷ n)nt
A = Maturity amount (principal plus interest)
P = Principal (initial deposit amount)
r = Annual interest rate as a decimal (e.g. 7.5% = 0.075)
n = Compounding frequency per year (4 = quarterly, 12 = monthly, 1 = annual, 365 = daily)
t = Tenure in years
Interest earned = A − P
EAR = (1 + r/n)n − 1 (Effective Annual Rate)
Reverse principal = Target ÷ (1 + r/n)nt
Example: P = 1,00,000 | r = 7.5% quarterly | t = 3 years: A = 1,00,000 x (1.01875)^12 = 1,25,144. Interest = 25,144. EAR = 7.71%.
📖 How to Use This Calculator
Steps
1
Select a calculation mode - Choose Maturity to compute your FD maturity amount. Choose Reverse FD to find the principal needed to reach a target amount. Choose Compare FDs to evaluate two plans side by side.
2
Enter your deposit details - In Maturity mode: enter principal, annual interest rate, tenure, and compounding frequency. In Reverse mode: enter your target maturity amount, rate, and tenure. In Compare mode: fill in details for both FD plans.
3
Click Calculate - Results appear instantly showing maturity amount, total interest earned, and Effective Annual Rate. Compare mode adds a verdict row showing which FD yields more and by exactly how much.
4
Explore scenarios with sliders - Drag the rate or tenure sliders to see how small changes compound over time. A 0.25% rate increase on a 5-year deposit of 5 lakhs adds over 3,000 to your maturity amount.
💡 Example Calculations
Example 1 - Standard FD: 1 Lakh at 7.5% for 3 Years (Quarterly)
Deposit 1,00,000 at 7.5% p.a. with quarterly compounding for 3 years
1
Identify values: P = 1,00,000 | r = 0.075 | n = 4 (quarterly) | t = 3 years.
2
Apply formula: A = 1,00,000 x (1 + 0.075/4)^(4x3) = 1,00,000 x (1.01875)^12.
3
(1.01875)^12 = 1.25144. So A = 1,00,000 x 1.25144 = 1,25,144.
4
Interest earned = 1,25,144 minus 1,00,000 = 25,144. EAR = (1.01875)^4 minus 1 = 7.71%.
Maturity = 1,25,144 | Interest = 25,144 | EAR = 7.71%
Try this example →Example 2 - Reverse FD: How Much to Deposit for a 5 Lakh Goal?
Target: 5,00,000 in 5 years at 7.25% quarterly compounding
1
Formula: Principal = Target / (1 + r/n)^(nt) = 5,00,000 / (1 + 0.0725/4)^20.
2
(1.018125)^20 = 1.43326. Principal = 5,00,000 / 1.43326 = 3,48,867.
3
Interest that will accrue = 5,00,000 minus 3,48,867 = 1,51,133 over 5 years.
Principal needed = 3,48,867 | Interest accrued = 1,51,133
Try this example →Example 3 - Compare FDs: 7.0% Annual vs 7.0% Quarterly on 2 Lakhs for 5 Years
Same rate but different compounding: annual vs quarterly, 2,00,000 for 5 years
1
FD 1 (annual compounding): A = 2,00,000 x (1.07)^5 = 2,00,000 x 1.40255 = 2,80,510.
2
FD 2 (quarterly compounding): A = 2,00,000 x (1.0175)^20 = 2,00,000 x 1.41478 = 2,82,956.
3
Difference: 2,82,956 minus 2,80,510 = 2,446 more with quarterly compounding.
FD 2 (quarterly) yields 2,446 more purely due to compounding frequency
Try this example →❓ Frequently Asked Questions
What is a Fixed Deposit and how does it work?
A Fixed Deposit (FD) is a savings instrument offered by banks and NBFCs where you deposit a lump sum for a fixed tenure at a predetermined interest rate. The rate is locked in at the time of opening and does not change regardless of market conditions. At maturity, you receive your principal plus the accumulated compound interest. Cumulative FDs reinvest interest (giving you more at maturity), while non-cumulative FDs pay interest periodically as income.
What is the FD maturity formula?
FD maturity is calculated using the compound interest formula: A = P(1 + r/n)^(nt). Here A is the maturity amount, P is the principal, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and t is the tenure in years. Total interest earned is A minus P. For quarterly compounding at 7.5% on 1 lakh for 3 years: A = 1,00,000 x (1.01875)^12 = 1,25,144.
What compounding frequency do Indian banks use?
As per RBI guidelines, most Indian banks compound FD interest quarterly (4 times per year). Some banks compound monthly (12 times per year) for specific products. Non-cumulative FDs that pay monthly interest may use monthly compounding. You should always verify the compounding frequency in your bank's FD terms or your account statement, since even a difference from quarterly to monthly compounding on a large deposit over several years can make a meaningful difference in returns.
What is the Effective Annual Rate (EAR) on an FD?
The Effective Annual Rate (EAR) is the true annual yield after accounting for the effect of intra-year compounding. Formula: EAR = (1 + r/n)^n minus 1. For an FD at 7.5% compounded quarterly: EAR = (1.01875)^4 minus 1 = 7.71%. This means your deposit actually grows by 7.71% in real terms each year, not 7.5%. When comparing FDs with different compounding frequencies, always compare EARs rather than stated rates.
How is the Reverse FD calculation done?
The reverse FD calculation finds the principal you need to deposit today to reach a target maturity amount. It simply rearranges the compound interest formula: Principal = Target / (1 + r/n)^(nt). For example, to accumulate 5 lakhs in 5 years at 7.25% quarterly: Principal = 5,00,000 / (1.018125)^20 = 5,00,000 / 1.43326 = 3,48,867. You need to deposit about 3.49 lakhs today to reach the 5-lakh goal.
Is FD interest taxable in India?
Yes, FD interest is added to your total income and taxed at your applicable income tax slab rate. If annual interest from one bank exceeds 40,000 (50,000 for senior citizens), the bank must deduct TDS at 10% before crediting interest. You can avoid TDS by submitting Form 15G (under 60 years) or Form 15H (senior citizens) to the bank if your total income is below the basic exemption limit. Note that TDS is only an advance tax, not the final tax liability.
What is the penalty for premature FD withdrawal?
Most banks charge a premature withdrawal penalty of 0.5-1% below the applicable rate for the period the deposit was held. For example, if you break a 7.5% FD after 18 months and the 18-month rate is 7%, the bank may pay 6-6.5% (applicable rate minus penalty). Tax-saving FDs under Section 80C have a mandatory 5-year lock-in and cannot be closed before maturity. Some banks offer partial withdrawal on sweep-in or flexi FDs without any penalty.
How do I compare two FD plans that have different rates and compounding frequencies?
Use the Compare FDs mode. Enter principal, rate, tenure, and compounding frequency for each plan. The calculator shows maturity amount, total interest, and EAR for both plans and tells you which one yields more. The EAR comparison is especially important when the two plans use different compounding frequencies. A plan with a slightly lower stated rate but monthly compounding can actually outperform one with a higher stated rate but annual compounding.
Can I deposit in a currency other than Indian rupees?
Yes. Use the currency selector in the calculator widget to switch between INR, USD, GBP, EUR, and other currencies. The formula works identically for any currency since it is a pure percentage-based compound interest calculation. International banks in the UK, US, and Australia also offer term deposits (the equivalent of FDs). Interest rates and compounding conventions vary: UK banks typically compound monthly, US banks often compound daily or quarterly, and Australian term deposits typically compound annually.
What is the maximum FD amount and is it insured?
There is no legal upper limit on FD investments at most banks. However, the Deposit Insurance and Credit Guarantee Corporation (DICGC) in India insures deposits only up to 5 lakhs per depositor per bank, covering principal and interest combined. If you have more than 5 lakhs to invest, consider spreading it across multiple banks to maximise your insurance coverage. RRBs, cooperative banks, and payment banks are also covered under the DICGC scheme.
How does a Fixed Deposit compare to PPF and RD?
FD offers flexible tenure (7 days to 10 years), fixed rates, and no lock-in beyond the chosen tenure (subject to premature withdrawal penalties). PPF (Public Provident Fund) offers EEE tax treatment (contributions, interest, and withdrawals all tax-free) and a government-backed 7.1% rate, but has a 15-year lock-in. RD (Recurring Deposit) is similar to FD but involves fixed monthly deposits instead of a lump sum. Choose FD for lump-sum parking, RD for systematic saving from income, and PPF for long-term tax-free wealth creation.
Which bank gives the highest FD rate in 2026?
Small Finance Banks (SFBs) in India such as Unity SFB, Jana SFB, and ESAF SFB typically offer the highest FD rates, often 8-9% or higher for specific tenures and senior citizens. Private sector banks like HDFC, ICICI, and Axis typically offer 7-7.75%, while public sector banks like SBI and Bank of Baroda offer 6.5-7.25% depending on tenure. Rates change frequently with RBI policy decisions. Always check the official bank website for current rates before opening an FD.