About the Post-Tax FD Return Calculator
What is the Post-Tax FD Return Calculator?
FD interest is added to your income and taxed at your slab rate, so the rate the bank quotes is not what you keep. For someone in the 30% slab, a 7% FD earns only about 5% after tax.
Enter the deposit, rate, tenure, compounding frequency and your tax slab. This post-tax FD return calculator shows the maturity before and after tax, the tax on interest (including 4% cess) and the pre-tax and post-tax annual yields.
How to use the Post-Tax FD Return Calculator
- Deposit Amount (₹) (sample: 5,00,000)
- FD Interest Rate (% per year) (sample: 7)
- Tenure (years) (sample: 5)
- Compounding (sample: Quarterly (most banks))
- Your Income Tax Slab (sample: 30%)
- Press Calculate Post-Tax Return (results also refresh as you type). The result card shows the Post-Tax Maturity Value, along with Pre-tax maturity value, Interest earned, Tax on interest (incl. 4% cess) and Pre-tax annual yield.
Formula used
Post-tax maturity = P + Interest × (1 − Slab × 1.04)
- Interest = P × (1 + r ÷ m)^(m × t) − P
- Post-tax yield = (Post-tax maturity ÷ P)^(1 ÷ t) − 1
Tax is payable every year on interest accrued, even on cumulative FDs, so declare it annually.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Deposit Amount (₹) | 5,00,000 |
| FD Interest Rate (% per year) | 7 |
| Tenure (years) | 5 |
| Compounding | Quarterly (most banks) |
| Your Income Tax Slab | 30% |
| Result | Value |
|---|---|
| Post-Tax Maturity Value | ₹6,42,684 |
| Pre-tax maturity value | ₹7,07,389 |
| Interest earned | ₹2,07,389 |
| Tax on interest (incl. 4% cess) | ₹64,705 |
| Pre-tax annual yield | 7.19% |
| Post-tax annual yield | 5.15% |
Tips for using the Post-Tax FD Return Calculator
- Senior citizens can deduct up to ₹50,000 of interest under Section 80TTB (old regime).
- If your income is below the taxable limit, submit Form 15G/15H to avoid TDS.
- Compare the post-tax yield with tax-free options such as PPF (7.1%).