Wrong frequency
Choosing monthly when the product compounds quarterly changes the estimate.
Banking & savings • Pre-tax estimate
Fixed Deposit Calculator
Estimate the maturity value and interest earned on a cumulative fixed deposit using the rate and compounding frequency supplied by you.
Enter FD details
How to use this calculator
- Enter the lump sum to be deposited.
- Enter the annual rate quoted by the institution.
- Enter the tenure in years; decimals can represent partial years.
- Select the stated compounding frequency.
- Calculate and compare maturity with principal.
Use the exact compounding frequency from the product information. A quarterly-compounded cumulative FD is not the same cash flow as an FD paying interest monthly.
Formula
A = P × (1 + R ÷ N)N×T
P is principal, R is annual rate as a decimal, N is compounding periods per year and T is years. Interest earned is A minus P.
The tool assumes a cumulative deposit with unchanged rate. It does not model periodic payouts, tax, TDS, day-count conventions, renewal or premature closure.
Worked example
A cumulative FD of ₹2,00,000 at an illustrative 7.5% annual rate for 2 years, compounded quarterly, produces:
| Principal | ₹2,00,000 |
|---|---|
| Estimated interest before tax | ₹32,044 |
| Estimated maturity value | ₹2,32,044 |
This example is mathematical and rounded. Use the current product rate and terms rather than treating 7.5% as a recommendation or current market rate.
How to interpret the result
Maturity value is the estimated principal plus compounded interest. Interest earned is before tax. Your post-tax return depends on your circumstances and current rules. If the product pays interest out instead of reinvesting it, the cumulative result will not represent the actual cash flow.
Compare this estimate with the Inflation Calculator and your liquidity needs.
Practical FD tips
- Confirm whether the FD is cumulative or payout-based.
- Review premature-withdrawal and renewal conditions.
- Compare post-tax outcome, not only headline rate.
- Avoid concentrating all emergency money in a locked tenure.
- Verify institution and product details through official sources.
- Keep nomination details updated.
Common mistakes
Ignoring tax
The pre-tax interest is not necessarily the amount you keep.
Ignoring liquidity
Premature closure may change the effective return.
Chasing rate alone
Institution, terms and diversification also matter.
Related resources
Frequently asked questions
What does this calculator show?
Estimated pre-tax maturity value and interest.
Does it deduct tax or TDS?
No. The calculation is before tax.
Why does compounding frequency matter?
It changes how often interest is added to principal.
Can a bank quote differ?
Yes, due to day counts, rounding and product terms.
Is premature-withdrawal penalty included?
No.
Can I use it for non-cumulative FD?
It is designed for cumulative growth, not periodic payout cash flows.
Is a higher rate always better?
No. Consider institution, liquidity, tenure and post-tax return.
Does it choose a rate?
No. Enter the rate from the product you are reviewing.
Educational disclaimer
This tool provides a simplified educational estimate, not deposit, tax or investment advice. Verify current rates, tax treatment and product conditions with official sources and the institution.