# FD calculator

Work out the maturity amount of a fixed deposit

Use it at https://www.quicktoolz.com/tools/fd-calculator. From QuickToolz.

FD stands for fixed deposit. Most Indian banks compound interest quarterly on a cumulative deposit, so ₹1,00,000 at 7% for 5 years grows to about ₹1,41,478. If you choose monthly or quarterly payouts instead, the interest is paid to you and your deposit stays the same.

## How it works

A = P × (1 + r ÷ 4)^(4 × t)

In the formula, P is the deposit, r is the yearly rate and t is the time in years. Dividing by 4 reflects quarterly compounding.

Banks sometimes pay a slightly lower rate on monthly payouts. Check your bank’s figure.

Worked example: ₹1,00,000 at 7% for 5 years, compounded quarterly, is 1,00,000 × 1.0175²⁰ = ₹1,41,477.82. The interest is ₹41,477.82.

## Examples

| Deposit | Rate | Tenure | Maturity amount |
| --- | --- | --- | --- |
| ₹50,000.00 | 6.5% | 1 years | ₹53,330.08 |
| ₹1,00,000.00 | 7% | 3 years | ₹1,23,143.93 |
| ₹1,00,000.00 | 7% | 5 years | ₹1,41,477.82 |
| ₹5,00,000.00 | 7.5% | 5 years | ₹7,24,974.01 |

## What this tool doesn't cover

- Tax on interest isn’t included.
- Senior citizen rates vary by bank, so enter your own rate.
- Many banks pay simple interest on deposits under 6 months, and a slightly lower rate on monthly payouts. Your bank’s figure may differ.
- This is an estimate, not financial advice.

## Questions

### Is FD interest taxable?

Yes. Interest is added to your income. Banks may also deduct tax at source.

### Can I break an FD early?

Usually yes, but banks may reduce the interest. Check your terms.

### Why quarterly compounding?

It’s the common convention at Indian banks for cumulative deposits.

### How is FD maturity worked out?

Interest is added to your deposit at set times, and later interest is earned on it too. Most Indian banks compound quarterly.

### What is the difference between cumulative and payout FDs?

A cumulative FD pays everything at the end, so interest compounds. A payout FD pays interest regularly, so it earns less in total.

## Sources

- [Reserve Bank of India](https://www.rbi.org.in)
- [SEBI investor education](https://investor.sebi.gov.in)