In India and many other countries, bank fixed deposits compound quarterly. A cumulative FD reinvests the interest until maturity; a non-cumulative FD pays it out regularly, which suits retirees who need income.
How to use the FD Calculator – Fixed Deposit
- Fixed deposit type
- Principal amount
- Interest rate (per year)
- Term
- Compounding frequency
Results update as you type, and every field accepts the units shown in its menu.
How it works
Choose the FD type, enter the principal, interest rate, term and compounding.
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Fixed deposit type | Choose one: Cumulative (interest reinvested), Non-cumulative – monthly payout, Non-cumulative – quarterly payout |
| Principal amount | Amount in your currency |
| Interest rate (per year) | In % |
| Term | Units: years, months |
| Compounding frequency | Choose one: Yearly, Semi-annually, Quarterly, Monthly … |
Example values
How the main result changes when Principal amount changes and everything else stays at the example values above:
| Principal amount | Maturity amount |
|---|---|
| 50,000 | 61,571.97 |
| 75,000 | 92,357.95 |
| 100,000 | 123,143.93 |
| 125,000 | 153,929.91 |
| 150,000 | 184,715.9 |
| 200,000 | 246,287.86 |
Formula
Cumulative: maturity = P × (1 + r ÷ n)^(n × t)Non-cumulative payout per period = P × r ÷ payouts per year (monthly payouts are usually discounted slightly)Total interest = maturity − principalWorked example
Inputs — Fixed deposit type: Cumulative (interest reinvested); Principal amount: $100,000; Interest rate (per year): 7 %; Term: 3 years; Compounding frequency: Quarterly.
Results — Maturity amount = $123,143.93; Payout per interest period = $0.00; Total interest = $23,143.93; Total payout (interest + principal) = $123,143.93.
Frequently asked questions
How is FD interest calculated?
Most banks compound quarterly: P × (1 + r/4)^(4t).
What is the difference between cumulative and non-cumulative FDs?
Cumulative reinvests interest; non-cumulative pays it out regularly.
Is FD interest taxable?
Yes, as income; in India banks deduct TDS above the threshold.
What formula does the FD Calculator – Fixed Deposit use?
Cumulative: maturity = P × (1 + r ÷ n)^(n × t).