A Fixed Deposit (FD) Calculator calculates the FD maturity value and interest income based on principal amount, FD interest rates and tenure. Online FD calculators of some banks additionally allow users to calculate their FD interest income based on the interest payout options (monthly, quarterly, half-yearly, yearly and reinvestment).
How can a Fixed Deposit calculator help you?
Easy to use: Using an online FD interest calculator for FD maturity and interest computation is easy. Users are usually required to enter a few basic details such as the principal amount, FD tenure and compounding frequency (quarterly, half-yearly and annual compounding) in the online calculator to get results.
Know the maturity amount: Before investing in an FD scheme, prospective depositors should know the expected amount in advance so as to determine whether the investment scheme will serve their investment goals at maturity or not.
Accurate calculation: Using an online Fixed Deposit calculator for calculating FD interest amount and maturity amount saves depositors from complex calculations and eliminates the risk of error caused due to miscalculations.
Make comparisons for FD selection: FD interest rates vary across banks and NBFCs/HFCs. Using an Fixed Deposit calculator can help depositors calculate and compare maturity amounts and interest income after considering FD features like tenure, interest rate, payout option and compounding frequency (quarterly, half-yearly, annual compounding) offered by various banks and NBFCs/HFCs. This would further help depositors choose the optimum FD scheme after considering the above-mentioned FD schemes.
The formula to determine FD maturity amount
The fixed deposit calculator for simple interest FD uses the following formula –
M = P + (P x r x t/100), where –
- P is the principal amount that you deposit
- r is the rate of interest per annum
- t is the tenure in years
For example, if you deposit a sum of Rs. 1,00,000 for 5 years at 10% interest, the equation reads –
M= Rs. 1,00,000 + (1,00,000 x 10 x 5/100)
= Rs. 1,50,000
For compound interest FD, the FD return calculator uses the following formula –
M= P + P {(1 + i/100) t – 1}, where –
- P is the principal amount
- i is the rate of interest per period
- t is the tenure
For example, if you take the same variables, the compound interest FD will accrue,
M= Rs. 1,00,000 {(1 + 10/100) 5-1}
Or, Rs. 1,61,051
FAQs
What is an FD calculator?
An FD calculator is an online tool that helps you estimate the maturity amount and interest earned on a fixed deposit based on the principal amount, interest rate, tenure, and compounding frequency.
How does an FD calculator work?
An FD calculator works by applying the formula for compound or simple interest. You input details such as the deposit amount, interest rate, tenure, and compounding frequency, and the calculator instantly shows the maturity amount and interest earned.