FD Monthly Interest Calculator
A non-cumulative fixed deposit pays the interest out regularly instead of adding it to the deposit. Use this calculator to see the monthly income you can expect.
Results
Monthly interest
₹2,916.67
- Quarterly interest
- ₹8,750.00
- Yearly interest
- ₹35,000.00
- Total interest over the tenure
- ₹1,75,000.00
- Principal returned at maturity
- ₹5,00,000
A deposit of ₹5,00,000.00 at 7% can pay about ₹2,916.67 every month for 5 years, ₹1,75,000.00 in all, with the principal returned at the end.
Show the calculation steps
- Yearly interest = P × rate ÷ 100 = ₹5,00,000.00 × 7% = ₹35,000.00.
- Monthly payout = yearly interest ÷ 12 = ₹2,916.67.
- Total interest over 5 years = ₹2,916.67 × 60 = ₹1,75,000.00.
- Banks often pay slightly less than this simple figure on a monthly-payout deposit, because the quoted rate is an effective yield. Confirm the payout with your bank. Interest is taxable.
Regular income from a deposit
With a payout deposit the principal stays constant and only interest is paid, so the income is steady and predictable. This suits retirees and anyone who wants regular cash flow.
Cumulative or payout?
Payout deposits give up compounding, so the total interest is lower than a cumulative deposit at the same rate. Choose payouts only if you need the income.
Formula
Yearly interest = P × rate ÷ 100
Monthly interest = yearly interest ÷ 12
Where:
- P
- = Deposit amount
- rate
- = Annual interest rate (%)
Example calculation
₹5,00,000 at 7% for 5 years, paid out monthly
Inputs
- Deposit Amount
- ₹5,00,000
- Interest Rate
- 7 %
- Deposit Tenure
- 5 years
Result
- Monthly interest
- ₹2,916.67
- Quarterly interest
- ₹8,750.00
- Yearly interest
- ₹35,000.00
- Total interest over the tenure
- ₹1,75,000.00
- Principal returned at maturity
- ₹5,00,000
Step-by-step
- Yearly interest = P × rate ÷ 100 = ₹5,00,000.00 × 7% = ₹35,000.00.
- Monthly payout = yearly interest ÷ 12 = ₹2,916.67.
- Total interest over 5 years = ₹2,916.67 × 60 = ₹1,75,000.00.
Important notes
- Banks often pay a slightly smaller amount than P × rate ÷ 12 on monthly payout deposits, because the quoted rate is an effective yield. Confirm the exact payout with your bank.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is monthly FD interest calculated?
Monthly interest = deposit × annual rate ÷ 12, as a simple approximation.
Is monthly payout better than cumulative?
Only if you need the income. Cumulative earns more overall because interest compounds.
Is the payout taxable?
Yes. Interest is taxable in the year it is earned, and TDS may apply.
Related calculators
- Fixed Deposit CalculatorCalculate the maturity value and interest on a fixed deposit with quarterly, monthly, half-yearly or yearly compounding.
- FD Maturity CalculatorFind your fixed deposit's maturity amount and maturity date, including any extra rate for senior citizens.
- Recurring Deposit CalculatorCalculate the interest and maturity value of a recurring deposit from your monthly instalment, rate and tenure.
- EMI CalculatorCalculate the equated monthly instalment (EMI) on a home, car or personal loan, plus the total interest and a year-by-year repayment schedule.
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