Fixed Deposit (FD) Calculator
Print| Total Interest Earned | $0.00 |
| Principal Amount | $0.00 |
Fixed Deposits (FDs) remain one of the safest and most popular investment vehicles for conservative investors seeking guaranteed financial returns. Unlike volatile stock markets, an FD guarantees your principal and locks in a fixed interest rate for a specified tenure—ranging from 7 days to 10 years.
Our free FD Calculator (Fixed Deposit Calculator) allows bank customers to calculate their total maturity value and total interest earned. By accounting for deposit principal, interest rates, and quarterly compounding, you can plan your fixed-income savings confidently.
How Fixed Deposit Interest is Calculated
Most commercial banks calculate Fixed Deposit interest using Quarterly Compounding (n = 4) for cumulative deposits.
The Cumulative FD Maturity Formula:
A = P × (1 + r / n)ⁿᵗ
- A: Total Maturity Amount paid at the end of tenure.
- P: Principal lump-sum deposit amount.
- r: Annual interest rate expressed as a decimal (e.g., 7.5% = 0.075).
- n: Compounding frequency per year (Standard FD = 4 quarterly periods).
- t: Total tenure duration in years.
Total Interest Earned:
Interest Earned = Maturity Amount (A) - Principal Deposit (P)
Step-by-Step Example Calculation
Imagine depositing $50,000 (or ₹50,000) into a 3-Year Cumulative Fixed Deposit offering a 7.20% annual interest rate with quarterly compounding.
Let’s calculate the maturity value:
r / n = 0.072 / 4 = 0.018
n × t = 4 × 3 = 12 compounding quarters
A = $50,000 × (1 + 0.018)¹²
A = $50,000 × (1.018)¹² = $50,000 × 1.2387 = $61,935
| FD Payout Option | How Interest is Paid | Total Payout (3 Years) |
|---|---|---|
| Cumulative FD (Reinvested) | Compounded quarterly; paid as lump sum at maturity. | $61,935 Maturity ($11,935 Interest) |
| Non-Cumulative FD (Payout) | Paid out monthly or quarterly as regular income. | $60,800 Total ($900/quarter income) |
Frequently Asked Questions (FAQ)
What is the difference between Cumulative and Non-Cumulative FDs?
In a Cumulative FD, interest is reinvested quarterly and paid out as a large lump sum at maturity (maximizing compound growth). In a Non-Cumulative FD, interest is paid out monthly or quarterly directly to your bank account, which is ideal for retirees needing regular income.
How does TDS (Tax Deducted at Source) affect FD returns?
In India and several international jurisdictions, banks automatically deduct TDS (typically 10%) on FD interest if annual interest earnings exceed specific threshold limits (e.g., ₹40,000 for regular individuals, ₹50,000 for senior citizens). Submitting Form 15G/15H waives TDS for eligible low-income depositors.
Can I break a Fixed Deposit before maturity?
Yes, most banks allow premature withdrawal of FDs. However, banks charge a penal interest rate (typically 0.50% to 1.00% lower than the contracted rate) for early termination.