What is a Fixed Deposit (FD)?

A Fixed Deposit is a safe financial instrument provided by banks and NBFCs where you invest a lump sum for a fixed tenure at a guaranteed interest rate. It is generally safer than market-linked investments.

How is FD interest calculated?

Most banks in India use quarterly compounding for FDs. The formula is A = P(1 + r/n)^(nt), where n is 4 (quarterly).

What is the difference between Cumulative and Non-Cumulative FD?

In a Cumulative FD, interest is reinvested and paid at maturity. In a Non-Cumulative FD, interest is paid out at regular intervals (monthly, quarterly, or annually).

Is FD interest taxable?

Yes. Interest earned on FDs is taxable as per your income tax slab. Banks may also deduct TDS (Tax Deducted at Source) if the interest exceeds a certain threshold (typically ₹40,000 for regular individuals).

FD Calculator - Fixed Deposit Interest & Maturity

An FD Calculator is a financial utility used to determine the maturity value and interest earned on a lump sum investment over a fixed tenure. Use OrangeTool to plan your savings with 100% privacy and accuracy✅no data ever leaves your device.

Quick Answer

A ₹1 Lakh Fixed Deposit for 1 year at 7% p.a. (compounded quarterly) matures to ₹1,07,186 - earning ₹7,186 in interest.

Formula: A = P(1 + r/n)^(nt). FD is a safe investment with guaranteed returns, ideal for short-to-medium term savings goals.

Investment Amount (₹)

Interest Rate (% P.A.)

Tenure (Years)

Principal Amount

Quick Answer

A ₹1 Lakh Fixed Deposit for 1 year at 7% p.a. (compounded quarterly) matures to ₹1,07,186 - earning ₹7,186 in interest.

Formula: A = P(1 + r/n)^(nt). FD is a safe investment with guaranteed returns, ideal for short-to-medium term savings goals.

Investment Amount (₹)

Interest Rate (% P.A.)

Tenure (Years)

Accurate - uses standard quarterly compounding Private - your savings data stays on your device Comparison - see principal vs. interest growth Last updated: May 2026

About Compound Interest Calculator

Project the growth of your investments over time using compound interest. Supports various compounding frequencies (daily, monthly, quarterly, semi-annually, annually) to match your investment terms.

OrangeTool uses **client-side processing** to run all calculation models, image optimization, and document converters. By performing computations in your browser's sandboxed memory, we eliminate the need to upload files or inputs to external servers. This architecture ensures privacy for your data.

Algorithmic Logic & Formulas

The underlying computations are governed by standard mathematical rules and data structures:

            A = P * (1 + r/n)^(nt)
        

Technical Matrix & Specifications

Compounding Frequency	Quarterly Yield (On ₹1L @ 8%)	Annual Yield (On ₹1L @ 8%)
Year 1 Return	₹8,243	₹8,000
Year 5 Return	₹48,594	₹46,932
Year 10 Return	₹1,20,803	₹1,15,892

How to Use Compound Interest Calculator - Step by Step

Input the required values, files, or parameters into the form fields.
Double-check the settings (such as formats or rates) for accuracy.
Click the action button to process. The calculation is completed instantly.
Download the generated document, text output, or result to your local device.

Frequently Asked Questions

What is compound interest?

Compound interest is interest calculated on the initial principal and the accumulated interest from previous periods, helping savings grow faster over time.

What is the compound interest formula?

The formula is A = P * (1 + r/n)^(nt), where A is the future value, P is the principal, r is the annual interest rate, n is the compounding frequency, and t is the tenure in years.

How does compounding frequency impact returns?

More frequent compounding (e.g. monthly or daily) generates slightly higher returns than less frequent compounding (e.g. annually) due to faster interest accumulation.

What is the Rule of 72?

The Rule of 72 is a quick way to estimate when your investment will double. Divide 72 by your annual interest rate to find the approximate number of years needed.

Is my financial data kept secure?

Yes. The calculator runs locally on your device, ensuring your investment details remain private.

Can I use this for Fixed Deposits (FD)?

Yes. Indian bank FDs typically compound quarterly. Select the quarterly compounding option for FD projections.

What is the difference between simple and compound interest?

Simple interest is calculated only on the initial principal. Compound interest is calculated on both the principal and the accumulated interest.

Does this calculator support tax deductions?

No. The calculator shows gross returns before taxes. Tax liabilities depend on your local tax slabs.