Fixed Deposit Calculator
Calculate your Fixed Deposit maturity value with different compounding frequencies.
Compare quarterly, monthly, and annual compounding returns.
A Fixed Deposit (FD) — called a Certificate of Deposit (CD) in the U.S. — is a savings instrument where you deposit a lump sum for a fixed term at a guaranteed interest rate. At maturity, you receive your principal plus the accumulated interest.
Formulas:
Simple Interest FD: Maturity Amount = Principal × (1 + Rate × Time) Interest Earned = Principal × Rate × Time
Compound Interest FD (most common): Maturity Amount = Principal × (1 + Rate/n)^(n × t) Interest Earned = Maturity Amount − Principal
What each variable means:
- Principal (P) — the amount deposited at the start.
- Rate (r) — annual interest rate as a decimal (e.g., 6.5% = 0.065).
- Time (t) — investment period in years.
- n — compounding frequency per year (1 = annually, 4 = quarterly, 12 = monthly, 365 = daily).
Compounding frequency effect on $10,000 at 5% for 3 years:
- Annual: $11,576.25
- Quarterly: $11,607.55
- Monthly: $11,614.72
- Daily: $11,618.22
Worked example: Deposit ₹1,00,000 in a bank FD at 7.5% per annum, compounded quarterly, for 2 years.
n = 4, t = 2, r = 0.075 Maturity = 1,00,000 × (1 + 0.075/4)^(4×2) = 1,00,000 × (1.01875)^8 = 1,00,000 × 1.16057 = ₹1,16,057
Interest Earned = ₹16,057
Tax note: In India, TDS of 10% is deducted if interest exceeds ₹40,000/year. In the U.S., CD interest is fully taxable as ordinary income in the year earned (even if not withdrawn).