Income
FD Income Calculator
Interest income on a deposit, before and after tax.
Last updated 14 August 2026 · Free · No sign-up · Nothing you type leaves your browser
Your deposit
Tax
FD interest is fully taxable at your slab rate every year it accrues, whether or not you've withdrawn it. Banks deduct TDS above a threshold, but your final liability follows your slab.
Value at maturity
₹14.1 L
₹10 L at 7.00%, compounding quarterly (the standard bank convention) for 5 years.
Total interest, pre-tax
₹4.15 L
After tax
₹2.9 L
Effective annual yield
7.19%
Higher than the quoted rate, from quarterly compounding
Principal vs interest over the term
Cumulative vs monthly payout
A cumulative FD reinvests your interest every quarter, so it compounds and pays more in total for the same quoted rate. A monthly-payout FD hands you the interest as income each month instead — useful if you need the cash flow, but it means the bank isn't compounding those payouts for you. At 7.00% over 5 years on ₹10 L, switching from monthly payout to cumulative is worth the difference shown above in total interest.
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Two structures, two different totals
A fixed deposit is not one product — cumulative and monthly-payout versions of the "same" rate pay genuinely different totals, because one compounds and the other does not. This calculator models both precisely, using quarterly compounding for cumulative FDs, the convention Indian banks actually use.
Tax is the part most people underestimate
Every rupee of FD interest is taxed at your slab rate, in the year it accrues. For someone in the highest bracket, that can take a substantial share of the return every single year — a sharp contrast with SWP withdrawals, where only the capital gain portion of each redemption is taxed. The after-tax figures above account for this directly.
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Frequently asked questions
Why does a cumulative FD pay more than a monthly-payout FD at the same rate?
A cumulative FD reinvests the interest every quarter, so it compounds — this calculator uses quarterly compounding, the standard convention among Indian banks. A monthly-payout FD hands you the interest as cash each month instead, so nothing compounds; your principal stays flat and each payout is a fixed rupee amount.
How is FD interest taxed?
Fully, at your income tax slab rate, in the year it accrues — whether or not you have actually withdrawn it. This is a structural disadvantage relative to equity mutual fund gains, which are only taxed on redemption. Banks deduct TDS above a threshold, but your final liability always follows your slab rate.
Is the quoted FD rate the same as what I actually earn?
Only for a monthly-payout FD. For a cumulative FD, quarterly compounding means your effective annual yield is slightly higher than the quoted rate — the calculator shows both figures.
Are FDs a good retirement income source?
They offer certainty that market-linked options don't, at the cost of fully taxable interest and no growth in the payout over time — a flat monthly amount loses purchasing power every year to inflation. Compare against our SWP and dividend income calculators before deciding.