Interest Calculator

See how much your money earns over time.

Interest Details

$
%
yrs

Total Interest

Total Amount (Principal + Interest)
Effective Annual Rate
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Simple vs compound interest

Simple interest: only the original principal earns interest. Great for short periods and simple loans.

Compound interest: interest earns interest. Choose a compounding frequency to see the effective annual rate — continuous compounding gives the highest return, followed by daily, monthly and quarterly.

Interest Calculator FAQ

What is the effective annual rate?
It is the real yearly rate after compounding. With 6% nominal interest compounded monthly, the effective annual rate is about 6.17% because interest earns interest every month.
Which compounding frequency gives the highest return?
Continuous compounding gives the highest return, then daily, monthly, quarterly, semi-annually and annually. The differences shrink as rates get lower.
Two modes: Fixed & recurring deposit
Simple: Principal-based interest
Compound: Interest-on-interest growth
Frequency: Monthly/quarterly/yearly

Interest Calculator — fixed and recurring deposits, one tool

Whether you're evaluating a fixed deposit (FD) or a recurring deposit (RD), this interest calculator tells you exactly how much your money grows — with a choice of simple or compound interest and the correct payout frequency for Indian banks.

FD vs RD explained

Fixed Deposit: one lump sum for a fixed term, typically compounded quarterly at 5.5–8%.

Recurring Deposit: fixed monthly contributions for a term, ideal for salaried savers building a goal gradually.

Both are safer than equity and produce guaranteed returns, making them the core of an emergency fund and short-term goal planning.

Why compounding frequency matters

Quarterly compounding (used by most Indian FDs) earns more than annual compounding on the same rate.

$1,00,000 at 7% over 5 years: annual compounding gives $1,40,255, quarterly gives $1,41,475 — about $1,200 more.

Effective annual rate = (1 + r/n)^n − 1. A 7% rate compounded quarterly is effectively 7.19%.

How to use this calculator

  1. Choose FD (lump sum) or RD (monthly deposit) mode.
  2. Enter the deposit amount(s).
  3. Input the rate and tenure.
  4. Select the compounding frequency and read total maturity and interest earned.

Pro tips

  • For FDs, book deposits in a ladder (1, 2, 3 years) for flexibility.
  • Senior citizens earn up to 0.5–1% more on FDs.
  • Reinvest the interest for maximum compounding.

Frequently asked questions

What is the best FD tenure for interest?
Tenures around 18 months to 3 years usually offer the highest rates, beyond which rates often plateau or drop slightly. Check each bank's rate card.
Is FD interest taxed?
Yes, as per your income slab. Banks deduct TDS if interest exceeds $40,000/year ($50,000 for seniors), but you must still declare it in your return.