Bank Terms First
The calculator starts with your actual deposit amount, bank rate, tenure, and compounding choice.
How The FD Calculator Works
Arthvya keeps the FD calculation visible: first the maturity estimate, then the practical view after tax and inflation when you choose Real mode.
FD Basics
A fixed deposit is a lump-sum deposit kept for a chosen tenure at an agreed interest rate. The calculator estimates the maturity amount based on your inputs and separates the principal from estimated interest.
Tenure In Years And Months
Months are converted into a fractional year, so shorter and mixed tenures can still be estimated.
Compounding Choice
Simple interest is the default. Monthly, quarterly, half-yearly, or yearly compounding applies only after you enable it.
Interest Split
Results separate principal from interest so the source of growth is visible instead of hidden.
Post-Tax View
Real mode applies the selected slab rate to estimated FD interest to show what may remain after tax.
Today's-Money View
Inflation adjustment discounts post-tax maturity value so the future payout is easier to compare.
Simple vs Real Mode
Simple Mode
Simple mode shows the estimated maturity amount from principal, rate, tenure, and your selected interest method. By default, it uses simple interest unless you enable compounding.
Real Mode
Real mode starts with the same maturity value, then estimates tax on interest using your selected slab and discounts the post-tax maturity by inflation.
Compounding Explained
Compounding decides whether interest is paid only on your original deposit, or whether earned interest is added back and starts earning more interest during the tenure.
Simple interest (default)
Interest is calculated only on the original principal. Leave Enable compounding off when your FD pays interest at maturity without reinvesting it along the way.
Interest = P x r x t
Compound interest (opt-in)
Turn compounding on when the bank adds interest back into the FD periodically. That reinvested interest then earns more interest, so maturity is usually higher than simple interest for the same rate and tenure.
A = P x (1 + r / n)n x t
Example: ₹1,00,000 at 7% for 2 years
Simple interest
Interest stays on the original ₹1,00,000 only.
₹1,14,000
₹14,000 interest at maturity
Quarterly compounding
Interest is reinvested every 3 months and grows further.
₹1,14,888
₹14,888 interest at maturity
When compounding is enabled
Choose how often interest is added back. More frequent compounding generally means a slightly higher maturity for the same annual rate.
Monthly
Interest is added 12 times a year.
Quarterly
Interest is added every 3 months. Common for many Indian bank FDs.
Half-yearly
Interest is added twice a year.
Yearly
Interest is added once a year.
Maturity Formula
By default, the calculator uses simple interest. If you enable compounding, the annual rate is divided by the number of compounding periods in a year and applied across the full tenure.
A = P x (1 + r / n)n x t
- A: estimated maturity amount
- P: principal deposit
- r: annual interest rate as a decimal
- n: compounding periods per year
- t: tenure in years
For simple-interest maturity, the calculator uses interest = P x r x t and maturity = P + interest.
Tax & Inflation
FD Interest Tax
Real mode estimates tax by applying your selected marginal slab rate to the interest earned. This reflects that FD interest is generally taxable as income from other sources.
Inflation Adjustment
After tax, the value is discounted by your inflation assumption: today's value = post-tax maturity / (1 + inflation rate)tenure.
Reading Results
Maturity Amount
The estimated payout before tax and inflation.
Post-Tax Maturity
The maturity estimate after subtracting estimated tax on interest.
Value In Today's Money
The post-tax value discounted for inflation to show purchasing power.
Important Notes
Bank interest crediting, premature withdrawal rules, TDS, surcharge, cess, and personal tax details can differ from this planning estimate.
This page explains the calculator logic for transparency. It is for planning and education only, not financial or tax advice.
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