About the FD Real Return Calculator
What is the FD Real Return Calculator?
An FD feels safe, but after tax and inflation its real return can be close to zero or even negative. That means your money grows in rupees but buys less each year.
Enter the FD rate, expected inflation, your tax slab, the amount and the tenure. The calculator shows the post-tax rate, the real return and the maturity value in today's purchasing power.
How to use the FD Real Return Calculator
- FD Interest Rate (% per year) (sample: 7)
- Inflation (% per year) (sample: 6)
- Your Income Tax Slab (sample: 30%)
- Deposit Amount (₹) (sample: 1,00,000)
- Tenure (years) (sample: 5)
- Press Calculate Real Return (results also refresh as you type). The result card shows the Real Return (after tax & inflation), along with Post-tax interest rate, Nominal value at maturity (post-tax), Value in today's money and Verdict.
Formula used
Real return = (1 + Post-tax rate) ÷ (1 + Inflation) − 1
- Post-tax rate = FD rate × (1 − Slab × 1.04)
Value in today's money = Amount × (1 + real return)^years.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| FD Interest Rate (% per year) | 7 |
| Inflation (% per year) | 6 |
| Your Income Tax Slab | 30% |
| Deposit Amount (₹) | 1,00,000 |
| Tenure (years) | 5 |
| Result | Value |
|---|---|
| Real Return (after tax & inflation) | -1.12% |
| Post-tax interest rate | 4.82% |
| Nominal value at maturity (post-tax) | ₹1,26,514 |
| Value in today's money | ₹94,538 |
| Verdict | Loses purchasing power after tax |
Tips for using the FD Real Return Calculator
- In the 30% slab, an FD needs to pay about 9% just to match 6% inflation after tax.
- Use FDs for safety and short-term goals, not for long-term wealth creation.
- Tax-free or tax-efficient options can improve real returns for high-slab investors.