FD calculator

The maturity value of a fixed deposit, then the two numbers most calculators leave out: what is left after income tax, and what that buys in today’s rupees.
Your fixed deposit
Interest compounded
Your income-tax slab
Maturity value: ₹7,07,389
₹5,00,000 deposited, ₹2,07,389 interest. Effective yearly rate 7.19%.
₹6,58,461
after about ₹48,929 of income tax at 20% plus cess
₹5,15,921
the after-tax amount in today's rupees, at 5% inflation
0.66%
yearly growth after tax and inflation (the real return)

How it is worked out

Maturity = P × (1 + r ÷ k)k × t, where r is the yearly rate, k the number of times interest is compounded a year (quarterly for most bank FDs) and t the years.

FD interest is added to your income and taxed at your slab every year it accrues, even when it is paid only at maturity. The after-tax figure grows the deposit at the rate left after tax and 4% cess. The real return then takes out inflation: if prices rise faster than the after-tax rate, the deposit buys less at maturity than the money deposited buys today.

Questions

How is FD interest calculated?

Most bank FDs compound quarterly: maturity = P × (1 + r/4)^(4t). ₹1 lakh at 7% for 5 years becomes about ₹1,41,478.

Is FD interest taxable?

Yes. FD interest is added to your income and taxed at your slab rate each year. Banks deduct TDS above a yearly threshold; TDS is an advance, not the final tax.

What is the real return on an FD?

The yearly rate after tax and inflation. At 7% interest, the 30% slab and 5% inflation, the real return is close to zero.

Educational calculator only, not financial, tax or investment advice. Results follow the formulas and the assumptions you enter; actual amounts depend on your lender, bank, employer and the rules that apply to you. Past performance does not indicate future results. Read the Disclaimer.