FD calculator: Calculate the maturity amount of your deposit.

FD calculator is a simple online tool that helps you calculate the maturity amount of your fixed deposit based on the current interest rate. You have to just enter the deposit amount, tenure, interest rate, and type of fixed deposit and the calculator instantly generates results. In this way, you can compare your fixed deposit amounts for various maturity periods. The FD calculator helps you choose the right bank for your fixed deposit.

What is FD (Fixed Deposit)?

Fixed Deposit is a financial investment instrument offered by Banks and NBFCs which offers higher interest rates than saving accounts. Here you deposit a lump sum amount with a bank and choose tenure at your convenience. On the completion of the pre-decided tenor, your deposit starts earning interest throughout the tenor as per the prevailing interest rate of the bank for that tenor.

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How is Fixed Deposit Interest calculated?

The fixed deposit interest is calculated based on simple interest and compound interest

Simple Interest Method

Generally, a fixed deposit with a tenure of 6 months or less is calculated by using the simple interest method. In this method rate of interest is fixed for a fixed period of time and the interest is calculated by using the below formula

SI = P x R x T / 100, where SI is the simple interest, R is the rate of interest and T is tenure in years

Example:  If you deposit Rs. 1 lakh for 5 years at an interest rate of 10% per annum, then the interest amount will be as under:

SI = P x R x T/100

SI = 100000 x 10 x 5/100 = 50000

Maturity Amount = Principal + Simple Interest = Rs. 100000 + Rs. 50000 = Rs. 150000 (Rs. 1.5Lakh)

 

Compound Interest method

In this method, interest is earned on both, the principal and the interest. In other words, earned interest is reinvested. Interest is calculated by using the below formula

A = P (1+r/n) ^{^ (n x t)}

Where,

A = Maturity Amount

P = Principal Amount

n = Number of times the interest is compounded in a year

r = rate on interest in decimals

t = Number of years

Example: If you deposit Rs. 10000 for 3 years at 10% rate of interest with quarterly compounding, the compound interest will be calculated as

A= 10000 {1 + (0.1/4)} ^{^ (4 x3)}

A = 10000 (1 + 0.025) ^{^ (12)}

A = 10000 (1.025) ^{^ (12)} = Rs. 13449 

              Compound Interest (CI) = Maturity Amount – Principal Amount

              CI = Rs.13449 – Rs.10000 = Rs. 3449         

 

 

How can the Fixed Deposit calculator help you?

Fixed Deposit calculator can help you in a number of ways

1. You can compare the maturity amounts of various banks and NBFCs and select the most suitable one. In such cases Online FD calculator becomes handy
2. Online FD Calculator solves complex calculations within a fraction of second
3. You can make all permutations and combinations using various interest rates, amounts, and tenures.
4. FD calculator is simple, fast, and accurate