Save What will I really keep?
FD tax calculator
Post-tax maturity, tax on FD interest, and inflation-adjusted yield — not just bank maturity.
What your FD is really worth
See how taxes and inflation affect your FD’s real value.
Assumptions
Tax slab
Inflation
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After Tax 20% tax₹6,61,021 Interest tax reduces what you keep
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Today’s Buying Power 5% inflation₹5,17,927 What that money can buy in today’s rupees
How your FD grows
Deposit vs bank maturity over the tenure
Principal vs interest
What your pre-tax maturity is made of
From deposit to what you keep
How deposit, interest, tax, and inflation shape what you keep
Same lump sum · post-tax real return side by side
Bank FD tools show pre-tax maturity. After tax and inflation, compare that real yield with an equity SIP or monthly RD before you lock the deposit.
FD vs SIP / RD / PPF Open when you want the side-by-side
How FD compares
FDs excel at capital safety and known horizons — but taxable interest and inflation often erode real returns. Enter the same numbers with tax and inflation on in each calculator to compare purchasing power, not brochure rates.
| Factor | FD | RD | PPF | Equity SIP |
|---|---|---|---|---|
| Tax on returns | Interest taxed at slab | Interest taxed at slab | EEE — tax-free | LTCG/STCG on gains |
| Typical rate (2026) | 6.5–7.5% p.a. | Similar to FD | ~7.1% p.a. | Market-linked |
| After tax + inflation | Often near-zero real | Often near-zero real | Modest positive real | Historically stronger — volatile |
| Best for | Lump-sum, 1–3 yr goals | Monthly discipline | 15+ yr tax-free wealth | 7+ yr growth goals |
Practical check: ₹5L at 7% for 5 years → ~₹7.01L pre-tax. After 30% tax ≈ ₹6.41L; at 6% inflation that feels like ~₹4.79L today. Model your own slab above before locking in.
Compare side by side: RD calculator · SIP calculator · PPF calculator
How to use this FD tax calculator
Enter your numbers above — bank maturity, tax on interest, and post-tax results update instantly in your browser.
- 1 Deposit, rate & tenure — match your bank FD offer (typical rates ~6.5–7.5% p.a.).
- 2 Read bank maturity — the passbook number under the inputs.
- 3 You Keep After Tax — with Apply tax on, the primary card shows post-tax maturity and tax drag at your slab.
- 4 Inflation & decide — expand Tax & Inflation for the Bank → After tax → Real ladder, then compare with SIP.
Annual compounding model for cumulative FDs. Not tax advice — run the interest tax simulation or read why headline rates mislead.
Learn more
What is a fixed deposit (FD)?
A bank, Post Office, or NBFC product that locks a lump sum for a chosen tenure at a guaranteed rate. You receive principal plus interest at maturity — unlike market-linked products.
Best for emergency buffers and known expenses within roughly 1–3 years. Not ideal for long-term wealth creation once tax and inflation are included.
FD rates in India (2026)
Most banks: 6.5–7.5% p.a. for 1–5 year tenures. Seniors usually get +0.25–0.50%.
- Cumulative — interest reinvested; maturity pays principal + compounded interest.
- Non-cumulative — interest paid out periodically; lower effective compounding.
- TDS — may apply when annual interest crosses ₹40k (₹50k for seniors); your slab sets final tax.
Enter your bank's current rate above — rates change without notice.
How post-tax real return is calculated
Interest compounds annually. Tax applies to total interest at your marginal slab. Real return uses the Fisher equation:
Real rate ≈ ((1 + after-tax nominal) ÷ (1 + inflation)) − 1
Default inflation is 6% p.a. (CPI proxy). Figures apply to cumulative FDs; payout FDs differ. All math runs in your browser.
Common FD mistakes
- Comparing headline rate to SIP CAGR without tax and risk adjustment.
- Assuming TDS equals final tax — reconcile in your ITR.
- Ignoring inflation on multi-year FDs meant for “wealth building.”
- Exceeding DICGC ₹5L per depositor per bank without splitting.
- Breaking early without recalculating the penalty on net yield.
FAQ
FD interest tax — common questions
Short answers on tax, TDS, slabs, and post-tax returns. Use the calculator above for your exact numbers.
Is FD interest taxable?
Yes. FD interest is fully taxable at your income slab as income from other sources. Unlike PPF or SSY, regular FD interest has no EEE exemption.
How is tax on FD interest calculated?
Interest = maturity − principal. Estimated tax ≈ interest × your slab. This tool applies the selected slab to total interest on a cumulative FD and shows You Keep After Tax.
What is the difference between FD TDS and income tax?
TDS is not the final tax liability. Banks may withhold TDS when annual interest crosses the threshold, but your slab on total income sets true tax. This calculator estimates tax based on the selected tax slab and interest earned — not TDS alone. Reconcile in your ITR.
How much tax will I pay on FD interest?
It depends on interest earned and your slab. Enter deposit, rate, tenure, and slab above — the primary card shows estimated tax drag and post-tax maturity for your inputs.
Does this calculator include slab-based taxation?
Yes. Keep Apply tax on and set your marginal slab (5%–50%). Tax applies to interest only, not principal.
How do I calculate post-tax FD returns?
Compute pre-tax maturity, tax the interest at your slab, then compare what you keep to principal. Use Apply tax above for post-tax maturity and the Bank → After tax → Real ladder.
How does inflation affect FD returns?
Inflation cuts purchasing power of maturity. After tax, turn on Apply inflation to see real yield and today’s-rupee value of what you keep.
Is a tax-saving FD different from a regular FD?
Tax-saver FDs (5-year, Section 80C) may give a deduction on the deposit within the ₹1.5L 80C ceiling, but interest is still taxable at slab — simulate interest tax the same way as a regular FD.