How do I calculate FD interest for a monthly payout?

With a monthly-payout FD the interest is paid out instead of reinvested, so it doesn't compound: monthly interest ≈ deposit × annual rate ÷ 12. On $1,040 at 7% that's roughly $6 a month, and the $1,040 comes back at maturity. Banks often quote a slightly lower rate for payout FDs than for cumulative ones, so use your bank's actual payout rate. This calculator shows the cumulative (reinvested) case.

How much should I invest in a fixed deposit?

There's no single right amount. A common way to decide: first build an emergency fund, then put money you'll need within the next 1–5 years — a house down payment, tuition, a wedding — into FDs, because they don't fall in value. Money you won't need for 5+ years often earns more elsewhere, but only you can weigh that against your risk comfort. Try the deposit amount and tenure above to see what different sums earn.

Is a term deposit the same as a fixed deposit?

Yes. "Fixed deposit" is the usual name in India; "term deposit" is the same product in the UK, Australia and elsewhere — a lump sum locked for a fixed tenure at a fixed rate. This calculator works for either; just enter your bank's rate, tenure and compounding frequency.

Are fixed deposits risk-free?

Fixed deposits are generally considered low-risk investments, especially when offered by regulated banks and institutions.

Which is better: Fixed Deposit or Recurring Investment?

Fixed deposits provide stable returns, while recurring investments in diversified portfolios may offer higher long-term growth but with greater risk.

Is FD interest taxable?

Yes — FD interest is added to your taxable income and taxed at your slab rate. Banks deduct TDS if interest earned crosses the threshold set for the year, but you still owe tax on the full interest amount regardless of TDS deduction.

What happens if I withdraw an FD before maturity?

Most banks apply a penalty — commonly 0.5–1% lower interest than the rate you'd have earned for the period actually held — rather than forfeiting all interest. Terms vary by bank, so check the specific premature-withdrawal clause before investing.

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Fixed Deposit Calculator

Estimate fixed deposit maturity value and interest earnings with different investment durations and interest rates.

Deposit amount$100,000

Interest rate (p.a.) %7%

Duration (Years)5 Years

Interest compounded

Maturity amount

$141,478

Interest earned$41,478

Initial deposit$100,000

Please note that these calculators are for illustrations only and do not represent actual returns. Interest rates may vary across banks and financial institutions, and actual returns depend on applicable rates and compounding frequency.

What is a fixed deposit (FD) calculator?

A fixed deposit calculator helps investors estimate fixed deposit maturity value and total interest earnings based on investment amount, interest rate, and investment duration. Fixed deposits, term deposits, certificates of deposit, and similar savings products are popular low-risk investment options offered by banks and financial institutions worldwide.

Unlike a savings account, a fixed deposit locks in both your money and your interest rate for a chosen tenure — in exchange, banks typically pay a meaningfully higher rate than a regular savings account. Breaking an FD before maturity usually forfeits some interest (a "premature withdrawal penalty"), so FD tenure should generally match a genuine time horizon, not just chase whichever bank is advertising the highest headline rate that week.

How Is FD Maturity Calculated?

Interest is added to the deposit at a set frequency and then earns interest itself:

Maturity Value = P × (1 + R / (100 × m))^(m × N)

Here P is the principal deposited, R is the annual interest rate, N is the tenure in years and m is how many times a year interest is compounded — 1 for annual, 2 for half-yearly, 4 for quarterly, 12 for monthly. The calculator defaults to quarterly, the convention many banks use for fixed deposits.

The same quoted rate produces different maturity values depending on the frequency. A $1,040deposit at 7% for 5 years grows to $1,459 with annual compounding, $1,467 half-yearly, $1,471 quarterly and $1,474 monthly. The gap is small on a short deposit and widens with a larger amount, a higher rate or a longer tenure, so check your bank's actual compounding frequency before comparing FD offers side by side.

Cumulative FD vs monthly payout FD

Banks let you take FD interest in two ways. In a cumulative (reinvestment) FD, interest stays in the deposit and compounds, and you receive everything at maturity — that's what the calculator above shows. In a payout FD, interest is paid out every month, quarter or year instead, so the deposit itself doesn't compound and the principal comes back unchanged.

For a monthly payout, the interest is roughly deposit × annual rate ÷ 12: a $1,040 deposit at 7% pays about $6 a month, $73 a year. The same deposit compounded quarterly for a year would grow to about $1,115 instead. Payout FDs suit people who need regular income, such as retirees covering expenses; cumulative FDs suit a goal with a fixed date. Banks often quote a slightly lower rate for payouts, so compare the effective return, not just the headline rate.

Benefits Of Fixed Deposits

Safe Investment

Fixed deposits are considered one of the safest investment options with predictable returns and low financial risk.

Guaranteed Returns

FD returns are fixed at the time of investment and are not directly affected by stock market volatility.

Flexible Duration

Investors can choose short-term or long-term deposit periods based on financial goals and liquidity needs.

Better Savings Planning

Fixed Deposit Calculator help estimate future maturity value for retirement planning, emergency funds, and wealth preservation.

LessonCompound Interest — Understand how time, consistency and returns interact — the single most important idea in personal finance.
CalculatorRD Calculator — Maturity value and interest earned on a recurring deposit, from a fixed monthly deposit.

Common questions

Maturity value = P × (1 + R / (100 × m))^(m × N), where P is the deposit, R the annual rate, N the years and m the number of times interest compounds a year. A $1,040 deposit at 7% for 5 years, compounded quarterly, matures at about $1,471 — $431 of interest.