Post-tax FD Calculator
See what your fixed deposit actually earns after income tax. Most FD calculators show the gross maturity amount and quietly skip the tax — but FD interest is taxed at your full slab rate plus 4% cess. Plug in your slab and see your real post-tax CAGR, including the 80TTB exemption for senior citizens.
Pick the slab applied to your topmost rupee. We add 4% cess automatically.
Post-tax maturity
₹6,42,684
₹5L principal · 7% pre-tax · 30% slab
- Pre-tax maturity
- ₹7,07,389
- Total tax paid
- ₹64,705
- Post-tax CAGR
- 5.15%
- Tax drag
- −2.04%
What the bank pays you
Slab rate + 4% cess on accrued interest
Your real annual return after tax
Pre-tax CAGR minus post-tax CAGR
Where the money goes
Year-by-year tax breakdown
| Year | Interest earned | Taxable | Tax paid | Post-tax interest | FD balance (gross) |
|---|---|---|---|---|---|
| Year 1 | ₹35,930 | ₹35,930 | ₹11,210 | ₹24,720 | ₹5,35,930 |
| Year 2 | ₹38,511 | ₹38,511 | ₹12,016 | ₹26,496 | ₹5,74,441 |
| Year 3 | ₹41,279 | ₹41,279 | ₹12,879 | ₹28,400 | ₹6,15,720 |
| Year 4 | ₹44,245 | ₹44,245 | ₹13,804 | ₹30,441 | ₹6,59,965 |
| Year 5 | ₹47,424 | ₹47,424 | ₹14,796 | ₹32,628 | ₹7,07,389 |
How it works
FD interest is taxed each year as Income from other sourcesat your marginal slab rate, plus 4% Health & Education Cess.
Effective tax rate = slab × 1.04
Yearly tax = (yearly interest − 80TTB exemption) × effective rate
Post-tax maturity = principal + (gross interest − total tax)
Post-tax CAGR = (post-tax maturity / principal)^(1/years) − 1The FD itself keeps compounding gross — tax is paid each year from outside the deposit. The depositor's net wealth is the maturity amount minus all tax paid over the tenure.
80TTB lets senior citizens (60+) deduct up to ₹50,000/year of interest income — but only under the Old tax regime. Toggle the Senior Citizen option to apply it.
How to use
- Enter the deposit amount, annual rate, and tenure (same inputs as a regular FD).
- Pick your tax slab. Most salaried earners are in the 20% or 30% slab; retirees with lower income may be in the 5% or 10% slab.
- Toggle Senior Citizen if you're 60+ and on the Old regime — applies the ₹50k 80TTB exemption per year.
- Read the Post-tax maturity and Post-tax CAGR. Compare with the gross effective yield to see the real impact of tax.
- For real-world planning, plug the post-tax CAGR into our Real Return Calculator to see what's left after inflation.
Frequently asked questions
How is FD interest taxed in India?
FD interest is taxed as 'Income from other sources' at your marginal slab rate (the rate applied to your topmost rupee of income). Unlike equity LTCG, there's no special 10% concessional rate for FDs — every rupee of interest is taxed at your full slab. A 4% Health & Education Cess is added on top of the tax. So a 30%-slab depositor effectively pays 31.2% on FD interest.
How is this different from a regular FD calculator?
A regular FD calculator shows the gross maturity amount — what the bank pays you. But you don't keep all of it: tax is owed each year on the interest accrued. This calculator shows what's actually left in your hand after tax, plus your real post-tax CAGR. For a 30%-slab depositor, the post-tax return on a 7% FD is closer to 4.8% — a number most calculators hide.
Is FD interest taxed each year, or only at maturity?
Income tax law treats FD interest on an accrual basis — you owe tax each year on that year's interest, even though you receive it only at maturity (for cumulative FDs). The bank reports the accrued interest in your Form 26AS / AIS each year. This calculator follows the same accrual model.
What is TDS on FDs and is it the same as my tax liability?
TDS (Tax Deducted at Source) is an advance tax the bank withholds — 10% if your annual interest exceeds ₹40,000 (₹50,000 for senior citizens), or 20% if you haven't submitted a PAN. TDS is not your final tax. Your actual liability is at your slab rate; the difference shows up when you file your return — you either pay extra or get a refund. This calculator shows your final liability, not TDS.
What is the 80TTB benefit for senior citizens?
Section 80TTB lets senior citizens (60+) deduct up to ₹50,000/year of interest income (savings accounts + FDs + RDs combined) — but only under the Old tax regime. Under the New regime, 80TTB is not allowed. Toggle 'Senior citizen + Old regime' in the calculator to apply this exemption. Note: Section 80TTA (the ₹10,000 deduction for non-seniors) applies only to savings-account interest, not FDs.
Should I prefer FDs or debt mutual funds post-tax?
After the April-2023 amendment, debt mutual funds bought on or after 1 April 2023 are taxed exactly like FDs — at your slab rate, on the gain when redeemed. So the post-tax return is similar. The differences are: FDs offer guaranteed returns and DICGC insurance up to ₹5L; debt MFs are slightly more liquid and can be timed for tax-year planning. For most retail investors with a 5-year horizon, FDs and debt MFs are close to a tie post-tax.
How can I reduce tax on my FD interest legally?
Three options. (1) Hold FDs in the name of a non-earning family member (spouse, parent) so interest is taxed at their lower slab — note clubbing rules apply for spouse income. (2) For senior parents, put their FDs in their name to use 80TTB exemption. (3) Invest in tax-saving 5-year FDs under Section 80C (Old regime only) — but interest is still taxed; only the principal up to ₹1.5L gets a one-time deduction.
Does this calculator account for indexation or inflation?
No — indexation never applied to FDs (only to debt mutual funds before April 2023, and only to long-term gains). For inflation-adjusted real return, use our Real Return Calculator with the post-tax CAGR shown here as input. A 7% pre-tax FD at a 30% slab against 6% inflation has a real post-tax return of roughly -1% — i.e., the saver is losing purchasing power.