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Home › Online Tools › Interest Calculator

Free Interest Calculator - FD Calculator, PPF Calculator, Simple & Compound Interest, RD 2026

Calculate simple interest, compound interest, FD returns, PPF maturity, and RD maturity instantly with year-wise growth breakdown. Compare which savings scheme earns you the most - in one free tool, no signup needed.

Especially useful for government employees comparing GPF vs PPF vs FD vs RD returns, and for anyone who wants to see exactly how much their savings will grow at a given interest rate over time.

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Simple Interest Calculator - Formula, Examples, and Use Cases

Simple interest is calculated using the formula SI = P x R x T / 100, where P is principal, R is the annual interest rate, and T is time in years. It is straightforward and predictable - useful for short-term personal loans, some government bonds, and post office monthly income schemes. For example, Rs 2 lakh at 8% simple interest for 3 years gives SI = Rs 48,000 and total = Rs 2,48,000. Simple interest is always lower than compound interest for the same rate and tenure - use the calculator above to see the difference with any values you enter.

Compound Interest Calculator - FD, PPF, RD, and Savings Accounts

Compound interest is the most powerful savings mechanism - interest earns interest each compounding period, causing exponential growth over long tenures. The formula is A = P x (1 + r/n)^(nT), where n is the number of compounding periods per year. Bank FDs compound quarterly, PPF and GPF compound annually. Rs 1 lakh at 7% compounded annually grows to Rs 1,96,715 in 10 years and Rs 3,86,968 in 20 years. Use the compound interest calculator tab above to see year-by-year growth for any amount, rate, and tenure - then compare with simple interest to understand exactly how much more compound interest earns.

FD Calculator - Fixed Deposit Maturity Across All Banks

Use the FD calculator tab to find the maturity amount for any fixed deposit. Enter the deposit amount, bank's interest rate, and tenure to instantly see total interest earned and final maturity value. SBI, HDFC, ICICI, PNB, and Kotak currently offer FD rates between 6.5% to 7.5% for general customers and 7.0% to 8.0% for senior citizens on select tenures. Government employees in the 30% tax bracket effectively earn only 4.5-5.25% post-tax on a 6.5-7.5% FD after deducting TDS. Compare this against PPF at 7.1% completely tax-free to make an informed decision.

PPF and GPF Calculator - Tax-Free Returns for Government Employees

PPF (Public Provident Fund) and GPF (General Provident Fund) are the two most powerful tax-saving investment tools available to government employees. Both offer 7.1% compound interest annually with full EEE (Exempt-Exempt-Exempt) tax status - the contribution is tax-deductible under 80C, interest earned is tax-free, and the maturity amount is completely tax-free. PPF has a 15-year lock-in with a maximum deposit of Rs 1.5 lakh per year. GPF has no upper limit and deducts automatically from the monthly salary. Use the PPF calculator tab to see the exact maturity amount after 15 years and how partial withdrawals or extensions affect your returns. Sukanya Samriddhi Yojana gives 8.2% for daughters - the highest government-backed rate currently available.

Savings Comparison - Which Scheme Is Best for Government Employees?

Here is a quick comparison of all major savings options for government employees ranked by effective post-tax returns: Sukanya Samriddhi Yojana at 8.2% fully tax-free (daughters), Senior Citizen Savings Scheme at 8.2% (above 60), NPS at 10-14% historically (market-linked, partial tax-free), GPF at 7.1% fully tax-free (best for current employees), PPF at 7.1% fully tax-free (best for self and spouse), and bank FDs at 6.5-7.5% fully taxable (lowest effective return). Strategy for maximum savings: maximize GPF deduction from salary, open PPF for Rs 1.5 lakh annually, invest Rs 50,000 extra in NPS Tier-1 for additional 80CCD(1B) deduction, and open Sukanya Samriddhi for daughters. Use our Salary Calculator to know your in-hand salary and EMI Calculator to plan loan repayments alongside savings.

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Frequently Asked Questions

❓ What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount - SI = P x R x T / 100. Compound interest is calculated on principal plus accumulated interest each period, making it grow faster. For example, Rs 1 lakh at 7% for 15 years earns Rs 1.05 lakh as simple interest but Rs 1.76 lakh as compound interest. This is why PPF (compounded annually) is a far more powerful savings tool than a simple interest scheme.
❓ What is the current PPF interest rate and how is it calculated?
PPF interest rate is set by the government quarterly. Currently it is 7.1% per annum, compounded annually. Interest is calculated on the minimum balance between the 5th and last day of each month - so always deposit before the 5th to earn interest on that month's contribution. PPF has a 15-year lock-in with EEE tax-free status. Maximum deposit is Rs 1.5 lakh per year eligible for Section 80C deduction.
❓ How much interest does Rs 1 lakh earn in an FD?
At 7% annual interest, Rs 1 lakh in an FD earns approximately Rs 7,000 per year as simple interest. With quarterly compounding (standard for most bank FDs), it grows to approximately Rs 1,31,501 after 4 years. Bank FD rates currently range from 6.5% to 7.5% for regular customers and 0.5% higher for senior citizens. Use the FD tab above to calculate exact maturity for any amount and tenure.
❓ Which is better - FD or PPF for government employees?
PPF wins for long-term savings. PPF gives 7.1% tax-free (EEE status), while FD interest is fully taxable. A government employee in the 30% tax bracket earning 7.5% FD effectively gets only 5.25% post-tax returns - much lower than PPF. For short-term needs under 5 years, FD is more flexible with no lock-in. For 15-year goals like child education or retirement, PPF is clearly better. Maximize PPF before opening any new FD.
❓ What is GPF and how is GPF interest calculated?
General Provident Fund (GPF) is a mandatory savings scheme for central government employees. GPF deducts automatically from salary - minimum 6% of basic pay. Interest is currently 7.1% per annum, compounded annually, and is completely tax-free. GPF has no upper deposit limit unlike PPF. For example, a GPF balance of Rs 10 lakh earns Rs 71,000 per year in tax-free interest. Government employees should maximize GPF contributions as it is the most tax-efficient savings available to them.
❓ What is an RD (Recurring Deposit) and what returns does it give?
A Recurring Deposit lets you invest a fixed amount every month and earn compound interest, similar to an FD but with monthly installments. This makes it ideal for salaried government employees who want to save systematically from their monthly salary. Use the RD tab above to calculate how much your monthly investment grows over any tenure. Post Office RD currently gives 6.7% compounded quarterly. Most bank RDs offer rates similar to their FD rates for the same tenure.
❓ What are the best savings options for government employees in 2026?
Ranked by current returns: Sukanya Samriddhi Yojana at 8.2% EEE tax-free (for daughters under 10), Senior Citizen Savings Scheme at 8.2% (for those above 60), NPS (market-linked, 10-14% historical returns), PPF at 7.1% EEE tax-free (15-year lock-in), GPF at 7.1% tax-free (auto salary deduction), and bank FDs at 6.5-7.5% taxable. Strategy: maximize GPF deduction, open PPF for Rs 1.5 lakh annually under 80C, invest in NPS Tier-1 for additional 80CCD(1B) deduction of Rs 50,000.

Sukanya Samriddhi Yojana Calculator - 8.2% Returns for Daughters

Sukanya Samriddhi Yojana (SSY) offers 8.2% compound interest annually - the highest government-backed savings rate in India. Use the compound interest calculator above with 8.2% rate to estimate SSY maturity. Deposits between Rs 250 and Rs 1.5 lakh per year are eligible for the full 15-year contribution period. The SSY account can be opened for any girl child below 10 years. All returns are completely EEE tax-free - contribution deductible under Section 80C, interest tax-free, and maturity amount tax-free. This makes SSY the single best investment for daughters of government employees.

More Free Tools

Use our EMI Calculator to plan home loan, car loan, and personal loan repayments alongside your savings. Know your exact government take-home salary with the 7th Pay Commission Salary Calculator. Compute exam marks with the Percentage Calculator and check age eligibility with the Age Calculator.

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