FD Calculator
Calculate FD maturity, interest earned, real returns after inflation and tax, and compare with other investment options.
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₹1.41 L
Matures in 5 years at 7.00% compounded quarterly — 1.41× your deposit
After 30% tax and 0% inflation, your money grows 5.2% per year in real terms — it keeps ahead of inflation, but only just.
Pre-tax estimate for a cumulative FD at a constant 7.00%. Confirm your bank's exact rate, compounding and TDS before depositing.
Every rupee of the maturity is either your own deposit or interest the bank paid on it.
₹1.41 L
Interest earned
Your deposit
Money doubles in
10.3 years
Rule of 72 at 7.00%, before tax
Tax impact on your FD
Interest earned
₹41,478
Tax (30%)
−₹12,443
After tax
₹29,034
Your purchasing power — the real picture
FD maturity (nominal)
₹1.41 L
Buying power today
₹1.29 L
Real wealth
₹29,034
Real return (after inflation, before tax)
+0.9%
per year vs 6% inflation
Effective annual return
5.23%
after tax
How an FD compares with other popular options (nominal value).
FD 7.0%
pre-tax
FD after 30% tax
what you keep
PPF 7.1%
tax-free
Gold 8%
long-term avg
Nifty 50 12%
long-term avg
Gold, PPF and Nifty figures are illustrative long-term averages, not guaranteed. PPF interest is tax-free; equity and gold are taxed differently. For comparison only.
- Tax takes ₹12,443 of your ₹41,478 interest.
- ₹1.00 L doubles in about 10.3 years at this rate.
- After tax and inflation it grows 5.2%/yr in real terms.
Key insight
An FD is safe and predictable — but after tax and inflation, it barely grows your real wealth. For long-term goals, growth assets usually build far more, with more risk.
Compare with SIPYour FD at a glance
- Deposit: ₹1.00 L at 7.00%, quarterly compounding
- Maturity in 5 years: ₹1.41 L (1.41× your deposit)
- Interest: ₹41,478 before tax, ₹29,034 after 30% tax
- Real wealth after tax + inflation: ₹29,034
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Your plan: ₹1.00 L at 7.00% for 5 years → about ₹1.41 L.
Plan the rest of your money life
Put this deposit in context — monthly saving, tax-free PPF, or market-linked growth.
How an FD maturity is calculated
M = P × (1 + r ÷ n)^(n × t)
- M
- maturity value (before tax)
- P
- deposit amount
- r
- annual rate (as a decimal = rate ÷ 100)
- n
- compounding periods per year
- t
- tenure in years
Worked example
With your inputs — ₹1.00 L at 7.00% compounded quarterly (4× a year) for 5 years: the per-period rate is the 7.00% annual rate ÷ 4 = 1.750% and there are n × t = 4 × 5 = 20 compounding periods. That grows to a maturity of about ₹1.41 L, of which roughly ₹41,478 is interest. This is a pre-tax estimate for a cumulative FD; actual returns depend on your bank's exact rate, compounding and TDS.
Most asked FD questions
An FD is safe and predictable — ideal for capital you can't risk and short-term goals. But the return is modest: after tax at your slab rate and ~6% inflation, a 7% FD often barely keeps pace with, or even trails, inflation in real terms. For long-term goals, growth assets like equity usually build far more real wealth, with more risk.
For a cumulative FD, interest is reinvested each period: maturity = P × (1 + r/n)^(n·t), where P is the deposit, r the annual rate, n the times interest compounds per year, and t the tenure in years. Most Indian banks compound quarterly (n = 4).
Yes. FD interest is fully taxable as income at your slab rate. Banks deduct TDS at 10% once interest crosses ₹40,000 a year (₹50,000 for senior citizens), or 20% without a PAN. This calculator lets you apply your tax rate to see the after-tax return — the number that actually matters.
Only just, and often not after tax. With ~6% inflation, a 7% FD earns roughly a 1% real return before tax. Once your slab-rate tax is applied to the interest, the after-tax return can fall below inflation — meaning your money grows in rupee terms but loses purchasing power. The comparison above shows this in today's money.
It depends on your goal and the rate curve. Locking a longer tenure fixes today's rate (good if rates are high, risky if they rise). Laddering — splitting across tenures — balances liquidity and rate. For tax-saver FDs there's a mandatory 5-year lock-in.
The FD rate is fixed and guaranteed by the bank (deposits are insured up to ₹5 lakh per bank by DICGC). The comparison figures for gold, PPF and Nifty are illustrative long-term averages shown for context only — those are not guaranteed and vary year to year.
Understanding fixed deposits
Nominal return vs real return
An FD's headline rate is its nominal return. What actually grows your wealth is the real return — what's left after inflation erodes purchasing power and tax takes a slab-rate cut of the interest. A 7% FD at 30% tax earns about 4.9% after tax; against ~6% inflation, that's a small loss in real terms. The calculator shows this in today's money so you see the true picture.
How FD interest is taxed
FD interest is fully taxable as income at your slab rate, and TDS is deducted at 10% once interest crosses ₹40,000 a year (₹50,000 for senior citizens). Higher earners therefore keep less of the interest. Tax-free options like PPF, or tax-efficient long-term equity, can leave more in your hands for the same headline rate — which is why the after-tax comparison matters.
Where an FD fits
FDs are ideal for money you can't risk and goals within a few years: an emergency fund, a near-term purchase, or capital preservation in retirement. Their certainty is the point. For long-horizon goals, though, the modest real return means equity and other growth assets usually build far more wealth over 10–20 years, despite their volatility.
Compounding frequency matters
The more often interest compounds, the higher the effective yield. Most Indian banks compound quarterly, so the effective annual return is slightly above the stated rate. This calculator lets you switch the frequency to see the difference. These results are planning estimates — confirm the exact rate, compounding and TDS rules with your bank before depositing.