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How to calculate fixed deposit maturity amount

Updated 2026-11-13

Quick answer

FD maturity = P × (1 + r ÷ m)^(m × t). A ₹1,00,000 deposit at 7% for 5 years, compounded quarterly, matures at ₹1,41,478, so the interest earned is ₹41,478.

Steps

  1. Note the deposit, the yearly rate and the tenure. Here: ₹1,00,000, 7% and 5 years.
  2. Find how many times a year the bank compounds the interest, m. Quarterly means 4.
  3. Divide the rate by m: 0.07 ÷ 4 = 0.0175.
  4. Raise 1.0175 to the power m × t = 20, which is 1.4148, and multiply by the deposit to get ₹1,41,478.
  5. Subtract the deposit to see the interest, or enter the numbers in the FD calculator.

Why the compounding frequency matters

On ₹1,00,000 at 7% for 5 years: compounded yearly the FD matures at ₹1,40,255; quarterly, ₹1,41,478; monthly, ₹1,41,763. More frequent compounding adds a little more each time, but the gain from quarterly to monthly is small.

Ask your bank how often it compounds and whether the rate it quotes is the rate or the effective yield, because the two differ.

Tenure and rate

At 7% compounded quarterly, a 3-year deposit of ₹1,00,000 matures at ₹1,23,144 and a 5-year deposit at ₹1,41,478. At 6% for 5 years the same deposit matures at ₹1,34,686. A single percentage point is worth about ₹6,800 over five years on this amount.

Tax and early withdrawal

Interest on an FD is taxable, and a bank may deduct tax at source above a limit that changes from time to time. Breaking an FD before maturity usually earns a lower rate and may carry a charge. The calculator shows the gross interest only, so check what you will actually keep.

Try it yourself

Common questions

What is the FD maturity formula?

Maturity = P × (1 + r ÷ m)^(m × t), with r the yearly rate as a decimal, m the compounding periods a year and t the years.

Is quarterly compounding common?

It is the most common for term deposits, but banks differ, so check yours.

Is FD interest taxable?

Yes. Banks may also deduct tax at source above a limit. The calculator does not include tax.

What if I break the FD early?

Banks usually pay a lower rate and may charge a penalty, so the maturity figure no longer applies.

Also read: How compound interest works, simple vs compound, How to calculate recurring deposit maturity