How fixed-deposit compounding is modeled
For a reinvestment-style deposit, interest is added back to the balance as it becomes due and can earn interest in later periods. Toolmera models this with A = P × (1 + r/m)^(m×t), where m is the selected number of compounding periods per year.
Actual bank deposit products can use specific day-count, rounding, payout and premature-withdrawal rules. Always compare the estimate with the bank’s product terms.
PDeposit principal
rAnnual contracted rate
mCompounding periods per year
tTerm in years
Example: ₹1 lakh at 7% for 3 years
With annual compounding, ₹1,00,000 at 7% for three years grows to about ₹1,22,504 in the model.
With quarterly compounding at the same nominal annual rate and term, the modeled maturity is about ₹1,23,144. The difference illustrates why compounding frequency matters when product terms reinvest interest.
Annual compounding≈ ₹1,22,504
Quarterly compounding≈ ₹1,23,144
Contracted rate and deposit terms come from the bank
RBI deposit directions define and regulate deposit interest practices, but individual banks set offered rates within the applicable framework. The rate you enter should come from the bank’s current deposit product.
The calculator does not determine eligibility for additional rates, tax treatment or premature-withdrawal adjustments.
FD maturity calculator: estimate maturity amount and interest earned
Use this FD maturity calculator when the question is how a fixed deposit may grow from the opening principal to the maturity amount. Enter the deposit amount, annual rate, tenure and compounding frequency to estimate both the final value and the interest earned.
The calculation is most useful for comparing deposit scenarios rather than predicting an exact bank payout. Actual maturity proceeds can differ because a bank may apply product-specific compounding, day-count, rounding, payout, tax or premature-withdrawal rules.