FD Calculator
Calculate Fixed Deposit maturity amount, interest earned, and effective annual yield across compounding frequencies.
About the FD Calculator
The CalcNest Fixed Deposit (FD) Calculator computes your guaranteed maturity returns and accumulated interest across monthly, quarterly, semi-annual, and annual compounding schedules. Fixed deposits provide risk-free capital preservation and predictable cash flows.
Mathematical Formula
Deterministic EngineA = P × (1 + r/n)^(n × t) Where P is the initial deposit, r is the annual nominal interest rate (in decimals), n is the compounding frequency per year, and t is the tenure in years.
Variables & Components
Worked Example: ₹1,00,000 Fixed Deposit at 7.5% for 5 Years (Quarterly Compounding)
Depositing a lump sum of ₹1,00,000 in a bank fixed deposit earning 7.5% per annum with quarterly interest compounding.
Step-by-Step Calculation
- 1 Interest rate in decimals: r = 7.5 / 100 = 0.075
- 2 Compounding frequency (Quarterly): n = 4
- 3 Total compounding periods: n × t = 4 × 5 = 20 quarters
- 4 Periodic growth factor: (1 + 0.075 / 4)^20 = (1.01875)^20 = 1.44995
- 5 Calculate Maturity Amount: A = 1,00,000 × 1.44995 = ₹1,44,995
- 6 Total Interest Earned: ₹1,44,995 - ₹1,00,000 = ₹44,995 (Effective Annual Yield = 7.71%)
How to Use This Calculator
Enter your initial Fixed Deposit principal investment.
Enter the annual interest rate offered by your bank or NBFC.
Choose the deposit tenure in years.
Select the compounding interval (Quarterly is standard across most commercial banks in India).
Compounding Frequency Comparison: ₹5,00,000 at 7.50% for 5 Years
Because interest compounds more often with higher frequencies, your effective payout increases as compounding intervals shorten:
| Compounding Interval | Times Compounded / Year | Total Interest Earned | Final Maturity Amount | Effective Annual Yield |
|---|---|---|---|---|
| Monthly | 12 times | ₹2,26,674 | ₹7,26,674 | 7.76% |
| Quarterly (Bank Standard) | 4 times | ₹2,24,974 | ₹7,24,974 | 7.71% |
| Half-Yearly | 2 times | ₹2,22,464 | ₹7,22,464 | 7.64% |
| Yearly | 1 time | ₹2,17,819 | ₹7,17,819 | 7.50% |
Cumulative vs. Non-Cumulative Fixed Deposits
Cumulative FD (Reinvestment)
Interest is reinvested quarterly and paid out together with principal at the end of the term. Best for investors focused on maximum wealth accumulation and long-term capital compounding.
Non-Cumulative FD (Periodic Payout)
Interest is paid out directly into your savings bank account monthly, quarterly, or annually. Ideal for retirees and pensioners seeking regular recurring cash flow to meet living expenses.