FD Calculator
Enter your deposit, the interest rate and the term. You get what the fixed deposit pays at maturity, or every month or quarter if you take the interest out, what's left after tax, and whether the bank will deduct TDS.
By Hardik Vegad, founder of WealthGamma · Last updated
You get at maturity
₹7,07,389
₹5,00,000 for 5 years at 7% a year, with interest added every quarter.
Amount deposited
₹5,00,000
Interest earned
₹2,07,389
Interest after tax
₹1,64,252
Yield for a year
7.19%
| Term | Interest | At maturity |
|---|---|---|
| 1 year | ₹35,930 | ₹5,35,930 |
| 2 years | ₹74,441 | ₹5,74,441 |
| 3 years | ₹1,15,720 | ₹6,15,720 |
| 5 years | ₹2,07,389 | ₹7,07,389 |
Interest in a year is within ₹50,000, so the bank deducts no TDS.
How is FD interest calculated?
If you leave the interest in, the bank adds it to your deposit every quarter, so each quarter's interest is worked out on a slightly bigger amount:
Maturity value = Amount × (1 + Rate ÷ 4)4 × Years
Interest earned = Maturity value − Amount
Worked through for ₹5,00,000 at 7% for 5 years:
- Rate for a quarter = 7% ÷ 4 = 1.75%
- Quarters = 4 × 5 = 20
- ₹5,00,000 × 1.017520 = ₹7,07,389
- ₹7,07,389 − ₹5,00,000 = ₹2,07,389 of interest
Because of the quarterly compounding, a 7% FD really earns 7.19% over a full year.
How much monthly interest does an FD pay?
If you take the interest out every month, it is the deposit × rate ÷ 12. At 7%, ₹5 lakh pays ₹2,917 a month and ₹10 lakh pays ₹5,833.
| Deposit | Interest a month | Interest a year | If left in for 5 years |
|---|---|---|---|
| ₹1,00,000 | ₹583 | ₹7,000 | ₹1,41,478 |
| ₹3,00,000 | ₹1,750 | ₹21,000 | ₹4,24,433 |
| ₹5,00,000 | ₹2,917 | ₹35,000 | ₹7,07,389 |
| ₹10,00,000 | ₹5,833 | ₹70,000 | ₹14,14,778 |
| ₹20,00,000 | ₹11,667 | ₹1,40,000 | ₹28,29,556 |
At 7% a year. Some banks pay a slightly lower amount on monthly payouts than on quarterly ones.
Should you take the interest out or leave it in?
Leave it in unless you need the income. On ₹5,00,000 at 7% for 5 years, leaving the interest in earns ₹2,07,389. Taking it out monthly earns ₹1,75,000, which is ₹32,389 less, because paid-out interest stops earning.
Need a monthly income from savings? Compare with the post office MIS, and for senior citizens the SCSS.
How is FD interest taxed?
FD interest is taxed at your slab rate every year, even in a cumulative FD where you haven't received it yet. What's left of ₹2,07,389 of interest:
| Tax slab | Interest after tax | Return after tax |
|---|---|---|
| 0% | ₹2,07,389 | 7% a year |
| 5% | ₹1,96,605 | 6.64% a year |
| 20% | ₹1,64,252 | 5.54% a year |
| 30% | ₹1,42,684 | 4.82% a year |
- TDS. A bank deducts 10% when your interest from it is more than ₹50,000 in a year, or ₹1,00,000 if you are 60 or above. At 7%, that's a deposit above about ₹6,95,807.
- TDS is not the final tax. You pay the rest, or claim a refund, when you file your return.
- Form 15G or 15H. If your total income is below the taxable limit, this form stops the bank from deducting TDS.
- Tax-saver FD. A 5-year tax-saver FD counts under Section 80C in the old regime. Its interest is still taxed.
Check the current rules before you file.
What are the post office FD rates now?
The post office calls its FD a time deposit. For October to December 2026, the 5-year deposit pays 7.5%. Interest is worked out every quarter and paid once a year.
| Term | Interest rate | ₹5L grows to |
|---|---|---|
| 1 year | 6.9% | ₹5,35,403 |
| 2 years | 7% | ₹5,74,441 |
| 3 years | 7.1% | ₹6,17,538 |
| 5 years | 7.5% | ₹7,24,974 |
Rates checked on 7 October 2026. The last column assumes each year's interest is put back in at the same rate. The 5-year deposit counts under Section 80C in the old regime.
Bank FD rates differ from bank to bank and change often, so check your bank's current rate and enter it above. For the post office's other 5-year options, see the NSC calculator and the post office RD calculator.
What does this FD calculator leave out?
It works out interest by the standard method. Your bank's figure can differ a little because of:
- Day counts. Banks count actual days, so odd terms such as 444 days differ slightly.
- Short FDs. Deposits under about 6 months usually earn simple interest.
- Breaking the FD early. Banks pay a lower rate and often charge a penalty.
- Yearly tax. Tax is shown on the total interest, though it is actually due each year.
- Inflation. After tax, an FD often only just keeps pace with prices.
Frequently asked questions
How is FD interest calculated?
Most banks add interest to your deposit every quarter: maturity = amount × (1 + rate ÷ 4)^(4 × years). ₹5 lakh at 7% for 5 years grows to ₹7,07,389, of which ₹2,07,389 is interest.
How much interest does ₹5 lakh earn in an FD per month?
At 7% a year, ₹2,917 a month if you take the interest out monthly. At 6.5% it is ₹2,708, and at 7.5% it is ₹3,125.
Is FD interest taxable?
Yes. FD interest is added to your income and taxed at your slab rate, every year, whether or not you have received it yet.
When is TDS deducted on FD interest?
When the interest from one bank is more than ₹50,000 in a year, or ₹1,00,000 for senior citizens. The bank then deducts 10%. If your total income is below the taxable limit, submit Form 15G or 15H to avoid it.
Which is better, a cumulative FD or a monthly payout FD?
A cumulative FD earns more, because the interest itself earns interest. On ₹5 lakh at 7% for 5 years, that is ₹2,07,389 against ₹1,75,000 with monthly payouts. Pick the payout only if you need the income.
What are the post office FD rates now?
For October to December 2026: 6.9% for 1 year, 7% for 2 years, 7.1% for 3 years, 7.5% for 5 years. Interest is worked out every quarter and paid once a year.