FD Monthly Interest Calculator — How Much Monthly Income?

Calculate monthly interest income from Fixed Deposits. Compare payout options and find how much FD corpus you need for desired monthly income.

Fixed Deposits with monthly interest payout are popular among retirees and those seeking regular passive income. At 7% interest rate on a Rs 10 lakh FD the monthly payout is approximately Rs 5833. For Rs 50 lakh FD the monthly income is approximately Rs 29167. Understanding the relationship between corpus size and monthly income helps plan retirement funding.

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Fixed Deposit Calculator

Maturity
₹1.41 L
Interest
₹41,478

Key Information

ParameterDetails
Monthly Interest (Rs 10L at 7%)Rs 5833 per month
Monthly Interest (Rs 25L at 7%)Rs 14583 per month
Monthly Interest (Rs 50L at 7%)Rs 29167 per month
Tax on FD InterestAt income tax slab rate (TDS 10%)

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Frequently Asked Questions

How much FD needed for Rs 50000 monthly income?

At 7% interest rate you need approximately Rs 85.7 lakh in FD to generate Rs 50000 monthly income. At 7.5% you need Rs 80 lakh. Remember FD interest is fully taxable so in the 30% tax bracket your effective monthly income from Rs 85.7L FD is Rs 35000 after tax. Consider tax-free options like SCSS for better post-tax returns.

Monthly payout vs cumulative FD which is better?

Cumulative FD gives higher total returns due to quarterly compounding on the interest. Rs 10 lakh at 7% for 5 years: cumulative gives Rs 14.15 lakh maturity while monthly payout gives Rs 10L + Rs 3.50L interest = Rs 13.50L total. Cumulative gives Rs 65000 more. Choose monthly only if you need regular income.

Is FD interest taxable?

Yes FD interest is fully taxable at your income tax slab rate. TDS of 10% is deducted if annual interest exceeds Rs 40000 (Rs 50000 for senior citizens). If you are in the 30% bracket your effective FD return drops from 7% to about 4.9% after tax. Senior citizens get slightly better rates and higher TDS threshold.

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Last updated: March 2026