QuickCalcy money guide
FD Interest Calculator Monthly Payout: Estimate Income
A monthly payout FD can create regular income, but the monthly interest is usually lower than a cumulative FD maturity because interest is paid out instead of compounding.
Simple monthly payout estimate
A quick estimate is: monthly payout = deposit amount x annual interest rate / 12. For example, a ₹10 lakh FD at 7.2% gives about ₹6,000 per month before tax. Banks may calculate exact payouts using their own compounding and payout rules.
| Deposit | Annual rate | Approx monthly payout |
|---|---|---|
| ₹5 lakh | 7.0% | ₹2,917 |
| ₹10 lakh | 7.2% | ₹6,000 |
| ₹25 lakh | 7.5% | ₹15,625 |
Monthly payout versus cumulative FD
In a cumulative FD, interest stays invested and compounds until maturity. In a monthly payout FD, interest is paid out regularly, so the maturity value is usually close to the principal amount and does not grow like a cumulative FD.
Tax impact
FD interest is generally taxable as income according to the depositor's tax slab. TDS rules may apply when interest crosses specified thresholds. The monthly amount received is not the same as post-tax income.
Senior citizen planning
Senior citizen FD rates may be higher than regular rates, but monthly payout planning should still include tax, medical expenses, emergency reserves and reinvestment risk when the deposit matures.
Risks and limitations
FDs are comparatively stable but not risk-free in every sense. Inflation can reduce purchasing power, premature withdrawal can reduce interest, and rates at renewal may be lower than today.
How to use the calculator
Use the FD calculator for cumulative maturity. For monthly income planning, divide annual interest by 12 as an approximation and verify the exact payout schedule with the bank before booking the deposit.