Fixed Deposit (FD) Calculator

When you open a fixed deposit you agree to leave a single lump sum untouched for a chosen term — anything from a few months to several years. In exchange, the bank pays a fixed rate that does not move even if market rates fall, which makes the return completely predictable. That certainty is the whole appeal: unlike equities or mutual funds, you know the maturity value the day you deposit.

Most banks compound FD interest quarterly, though half-yearly, monthly, and annual options exist. Compounding means each period’s interest is added to the balance so the next period earns interest on a slightly larger sum. The more often interest compounds, the higher the effective annual yield, though the gap between quarterly and monthly is modest. This tool lets you switch the frequency to see the difference for your own numbers.

There are broadly two payout styles. A cumulative FD reinvests every interest payment and pays everything at maturity — that is the growth this calculator models. A non-cumulative FD instead pays the interest out at regular intervals (monthly or quarterly) as income, leaving the principal to mature on its own; in that case your final maturity value is just the principal, because the interest has already been handed to you along the way.

The maturity figure shown here is before tax. In most countries the interest earned on a fixed deposit is taxable as ordinary income, and banks may withhold tax at source once the interest crosses a threshold. Always treat the headline number as a gross figure and subtract your own marginal tax rate to see what actually lands in your account.

Because the math is the same everywhere, you can use the currency switcher at the top of the page to read the result in whatever currency you keep your deposit in.

Deposit 100,000 at 7% per year compounded quarterly for 5 years. Using A = 100,000 · (1 + 0.07/4)^(4·5), the deposit matures at about 141,478 — roughly 41,478 in interest earned on top of your original 100,000. Switching the same deposit to monthly compounding nudges the maturity value a little higher; switching to annual compounding pulls it slightly lower.

Breaking an FD early almost always costs you. Banks levy a premature-withdrawal penalty, typically a reduction of 0.5% to 1% on the applicable rate, and they usually recalculate your interest at the lower rate that matched the period you actually stayed invested — so the effective return can be well below what this calculator shows. Some deposits are non-withdrawable by design and pay a slightly higher rate in exchange for that lock-in. If there is any chance you will need the money early, consider laddering several smaller FDs with staggered maturities rather than one large one, so you can break only the slice you need.