Fixed Deposit Calculator (Cumulative or Monthly Interest Payout)
FD maturity with quarterly compounding, or the monthly, quarterly or yearly interest a non-cumulative deposit pays.
Inputs
- Principal$100,000(71%)
- Interest$41,478(29%)
- Working
- deposit × (1 + 7% ÷ 4)^20 — 20 compounding periods
- Principal
- $100,000
- Interest
- $41,478
- Compounding
- 4× per year — effective 7.19% a year
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Fixed Deposit formula
Cumulative: A = P × (1 + r/n)^(n×t) · Non-cumulative payout: interest per payout = P × r ÷ m, total interest = P × r × t, principal returned at maturity
A cumulative fixed deposit keeps the interest in the account, so each period's interest earns interest itself; that is the compound interest formula, with P the deposit, r the annual rate as a decimal, n the number of times a year it compounds and t the tenure in years. Indian banks compound term deposits quarterly, which is the default here, so a 7% deposit actually grows at (1 + 0.07 ÷ 4)⁴ − 1 = 7.19% a year. A non-cumulative deposit pays the interest out instead — monthly, quarterly or yearly — so nothing compounds: each payout is simply the deposit times the annual rate divided by the number of payouts a year, and the deposit itself comes back at maturity. Over the same tenure a payout deposit earns less in total than a cumulative one at the same rate, because the paid-out interest is no longer working.
Fixed Deposit worked example
$100,000 for 5 years at 7%, compounded quarterly: the rate per quarter is 7% ÷ 4 = 1.75%, and there are 4 × 5 = 20 quarters, so the maturity amount is $100,000 × 1.0175²⁰ = $141,478 — about $41,478 of interest. The same deposit with monthly payout instead pays $583 a month (7% of the deposit, divided by 12), $35,000 over the five years, and returns the $100,000 at the end: $6,478 less than letting it compound.
More Fixed Deposit examples
$10,000 for 3 years at 5% with the interest paid out every month: $10,000 × 5% ÷ 12 = $41.67 a month, 36 payouts, and the deposit back at the end.
Where the Fixed Deposit calculator can give the wrong answer
- Monthly payout is modelled as one twelfth of the annual interest. Indian banks pay monthly interest 'at discounted value' — the quarterly interest brought forward to monthly dates — so the bank's figure is a few rupees a month lower than the one shown here. Quarterly payout matches bank practice exactly.
- The maturity figure is before tax. Interest on fixed deposits is taxable as income, and a bank deducts TDS above the threshold for the year unless Form 15G/15H is lodged; the TDS on salary and income tax calculators on this site cover that side.
- Premature withdrawal is not modelled. Most banks pay the rate for the period actually run, less a penalty, rather than the booked rate.
- Tenures that are not a whole number of compounding periods (for instance 5 years 3 months with annual compounding) are handled by the formula's fractional exponent, which is close to but not exactly what a bank's day-count does for the broken period.
- Rates change every few weeks and differ by bank, tenure slab and whether you are a senior citizen. Enter the rate from your bank's current card — the page does not carry a rate table.
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Fixed Deposit FAQ
- For a cumulative FD, by compounding: maturity = deposit × (1 + rate ÷ n)^(n × years), where n is how often the bank compounds — quarterly for Indian banks. {{$100000}} at 7% for 5 years is {{$100000}} × (1 + 0.0175)²⁰ = {{$141478}}. For a non-cumulative FD the interest is paid out each period as deposit × rate ÷ payouts per year, and the deposit comes back at maturity.
- Deposit × annual rate ÷ 12, before tax and before the bank's monthly discount. {{$100000}} at 7% pays about {{$583}} a month; {{$1000000}} at the same rate about {{$5833}}. Choose 'Monthly (non-cumulative)' and the page shows the payout, the total over the tenure and the principal returned at the end.
- In a cumulative FD the interest stays in the deposit and compounds, and you receive everything at maturity; in a non-cumulative FD the interest is paid to your account monthly, quarterly or yearly and only the principal is returned at maturity. Cumulative earns more in total for the same rate and tenure; non-cumulative gives a regular income.
- Less than the rate does. On {{$100000}} at 7% for 5 years, quarterly compounding gives {{$141478}} and monthly {{$141763}}, a difference of about {{$285}}; annual compounding would give {{$140255}}. A quarter of a percent more on the rate is worth more than any change of compounding interval.
- No. FD interest is taxable as income in the year it accrues, and above the yearly threshold the bank deducts TDS at source unless you submit Form 15G or 15H. Work out the tax separately; the page's figures are gross.