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FD & Retirement Planning.

Calculate your Fixed Deposit maturity with taxes and plan your inflation-adjusted retirement corpus all in one place.

Last updated: June 15, 2026
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Calculation Results

Maturity Value ₹0
Total Interest ₹0
Tax Deducted ₹0

Visual Breakdown

Disclaimer: This calculator provides estimates for educational purposes only. Actual rates and terms may vary based on your lender, credit profile, and market conditions.

Quick Answer

How are Fixed Deposit (FD) returns calculated?

Fixed deposits are calculated using the compound interest formula. For a ₹5,00,000 FD at 7.5% interest compounded quarterly for 3 years, your maturity value will be ₹6,24,858. The total interest earned is ₹1,24,858.

Formula
A = P × (1 + r/n)^(n×t) Where: P = Principal | r = Annual rate | n = Compounding frequency | t = Years
Example
P=₹5,00,000 | r=0.075 | n=4 (quarterly) | t=3 A = 500000 × (1 + 0.075/4)^(4×3) A = ₹6,24,858
Last updated: June 15, 2026
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Fixed Deposit & Retirement Formulas

Fixed Deposits are calculated using standard compound interest, usually compounded quarterly in India:

A = P(1 + r/n)^(nt)

Retirement corpus uses the Present Value of a Growing Perpetuity or standard Inflation Adjustment:

Future Expenses = Current Expenses × (1 + Inflation Rate)^(Years to Retire)

The "Corpus Needed" represents the total invested amount required at retirement to safely withdraw your inflation-adjusted expenses every month without running out of money, assuming a conservative withdrawal rate (like 4%).

Common mistakes with FDs and Retirement.

Mistake: Ignoring inflation when planning retirement
Correct: Always calculate your "Future Expenses", not just your current expenses. ₹50,000 today might be ₹1,60,000 in 20 years just to buy the same items.
Impact: Retiring with a corpus that only lasts 5-7 years instead of 30 years.
Mistake: Forgetting that FD interest is fully taxable
Correct: Deduct your marginal tax rate from your FD return. If you are in the 30% bracket, a 7% FD actually only yields a 4.9% return.
Impact: Your money loses purchasing power because post-tax FD returns often fail to beat 6% inflation.
What is TDS on FD?

TDS (Tax Deducted at Source) is 10% deducted by the bank if your annual FD interest exceeds ₹40,000 (₹50,000 for senior citizens).

How does compounding frequency affect FD?

The more frequently interest is compounded (e.g. quarterly vs annually), the higher your maturity amount will be.

Why calculate retirement corpus?

Inflation silently destroys purchasing power. ₹50,000 today might require ₹1.5 Lakhs after 20 years just to maintain the exact same lifestyle.

What is the 25x rule for retirement?

It's a financial independence rule of thumb stating you need 25 times your annual expenses saved to retire safely (assuming a 4% safe withdrawal rate).

Where should I invest for retirement?

For long horizons (10+ years), diversified equity mutual funds (SIPs) usually beat inflation better than traditional FDs.

Further reading.

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