Calculate fixed deposit returns with TDS
Built & maintained by Pappu Venkata Subbi Reddy, founder of Clacify · Updated July 2026 · Formulas verified against official Indian government sources
The Fixed Deposit Calculator computes the maturity amount and interest earned on a bank or post-office FD. Enter the principal, the annual interest rate, the tenure, and the compounding frequency (usually quarterly for Indian banks), and it returns the maturity value and total interest. It supports both cumulative FDs (interest reinvested and paid at maturity) and helps you understand non-cumulative payouts. Because most Indian banks compound interest quarterly, the calculator uses quarterly compounding by default, so the maturity figure matches what SBI, HDFC, or a post-office term deposit will actually pay. It also flags the TDS threshold so you can plan around tax on interest income.
For a cumulative FD with periodic compounding, maturity = P × (1 + r/n)^(n×t), where P is the principal, r is the annual interest rate (as a decimal), n is the number of compounding periods per year (4 for the standard quarterly compounding most Indian banks use), and t is the tenure in years. Total interest = maturity − P. Interest income is fully taxable as per your income slab; banks deduct 10% TDS once interest in a financial year crosses ₹40,000 (₹50,000 for senior citizens), which you can adjust against your final liability or avoid via Form 15G/15H if eligible. All computation is local to your browser.
| Interest rate | 1 year | 3 years | 5 years |
|---|---|---|---|
| 6.5% | ₹1,06,660 | ₹1,21,341 | ₹1,38,042 |
| 7.0% | ₹1,07,186 | ₹1,23,144 | ₹1,41,478 |
| 7.5% | ₹1,07,714 | ₹1,24,972 | ₹1,44,995 |
Senior citizens usually earn about 0.5% more than these rates. Remember interest is fully taxable at your slab, so a 7.5% FD returns roughly 5.25% after tax in the 30% bracket.
An FD's headline rate is pre-tax. Interest is added to your income and taxed at your slab every year, whether or not you withdraw it. So a 7.5% FD is really about 6% after tax in the 20% bracket and about 5.25% in the 30% bracket. Against 5–6% inflation, a long-term FD in a high tax bracket barely preserves purchasing power — which is why FDs are best for safety and short horizons, not long-term wealth building.
A cumulative FD reinvests the interest and pays everything at maturity — best for growing a lump sum. A non-cumulative FD pays interest out monthly, quarterly, or yearly — useful for retirees who need a regular income stream. The maturity figures above are for the cumulative option. For the same rate, cumulative gives a higher final amount because interest itself earns interest.
Banks deduct 10% TDS once your interest from that bank crosses ₹40,000 in a year (₹50,000 for senior citizens), rising to 20% if your PAN is not updated. TDS is not an extra tax — it is adjusted against your final liability — but if your total income is below the taxable limit, submit Form 15G (or 15H if you are a senior citizen) at the start of the year so the bank does not deduct it in the first place.
Instead of locking one large FD for five years, split it into five FDs maturing in successive years. As each matures you reinvest it for a fresh five-year term. This "laddering" gives you regular access to a portion of your money without breaking a deposit early (and losing interest), while still capturing longer-tenure rates on most of the corpus.
FD interest uses quarterly compounding: A = P × (1 + r/4)^(4n). Example: ₹1 lakh at 7% for 2 years = ₹1,00,000 × (1 + 0.07/4)^8 = ₹1,14,752. Interest earned = ₹14,752.
Banks deduct TDS at 10% if total FD interest from a bank exceeds ₹40,000 per financial year (₹50,000 for senior citizens). If your PAN is not submitted, TDS is 20%. Submit Form 15G (below 60, zero taxable income) or Form 15H (senior citizens, zero taxable income) at the start of the year to avoid TDS deduction.