FD vs inflation calculator
A fixed deposit (FD) pays a fixed rate for a fixed time. This calculator compares what it matures to with what inflation could take away, so you can see the real change in purchasing power.
This is an illustrative scenario based on the numbers you entered. It is not a forecast and not a recommendation.
How it works
Interest is compounded quarterly, a common convention for FDs. Tax is applied as a flat percentage of the interest you enter. The real value divides the after-tax maturity amount by (1 + inflation) for each year. If inflation is higher than the after-tax rate, the real return is negative even though the balance grew.
Common questions
Can an FD lose money after inflation?
Its balance does not fall, but if prices rise faster than your after-tax rate, the money buys less than before. The calculator shows this as a negative real return.
Is the tax rate the same for everyone?
No. Tax rules differ by person and country and change over time. Enter the percentage that applies to you.