FD Calculator

Fixed deposits (FDs) are one of the safest and most popular investment options offered by banks and financial institutions. Investors deposit a sum of money for a predetermined period and earn interest at a fixed rate. The tenure can vary from 7 days to 10 years depending on the bank and type of FD. A Fixed Deposit Calculator helps you quickly estimate the interest and maturity amount for your FD, making planning your investments simple and convenient.

What is an FD Calculator?

When you invest in a fixed deposit, your principal earns interest at the prevailing FD rate. Over time, this interest compounds, helping your savings grow. Calculating the maturity amount manually can be time-consuming and complex.

A Fixed Deposit Calculator is a digital tool that helps you determine:

• The interest you will earn on your FD
• The total amount payable at maturity
• Comparison between different FDs and compounding options

It is easy to use and does not require technical knowledge.

Types of Fixed Deposits

There are mainly two types of FDs, plus a senior citizen-specific option:

Fixed Deposit Calculation Formula

The interest rate for FDs is fixed at the time of investment. Factors affecting FD interest rates include:

• Investment tenure: Longer tenures usually attract higher interest.
• Age: Senior citizens get an additional 0.25%-0.75% interest.
• Economic conditions: Banks consider repo rates, inflation, and market conditions when determining rates.

There are two methods to calculate FD interest: Simple Interest and Compound Interest.

Simple Interest on FD

Simple interest is calculated only on the principal amount.

Formula:

Simple Interest (SI) = (P × R × T) / 100

Where:

• P = Principal invested
• R = Annual interest rate (%)
• T = Tenure in years

Example:

• Principal = ₹500,000
• Interest rate = 5% per annum
• Tenure = 5 years

SI = (500,000 × 5 × 5) / 100 = 125,000

Maturity Value = Principal + SI = ₹500,000 + ₹125,000 = ₹625,000

Compound Interest on FD

Compound interest is calculated on both the principal and the accumulated interest.

Formula:

A = P (1 + r/n)^(n × t)

Where:

• A = Maturity Amount
• P = Principal invested
• r = Annual interest rate (in decimal)
• n = Number of compounding periods per year
• t = Tenure in years

Example:

• Principal = ₹500,000
• Interest rate = 5% per annum
• Tenure = 5 years
• Compounding quarterly (n = 4)

A = 500,000 (1 + 0.05/4)^(4 × 5) = ₹641,018.62

Interest earned = ₹641,018.62 - ₹500,000 = ₹141,018.62

How an FD Calculator Helps

• Quickly calculate maturity amount for any principal, interest rate, and tenure
• Compare FDs from different banks and financial institutions to choose the best rates
• Decide between cumulative and non-cumulative FDs based on your income needs
• Make informed decisions without manual calculations

Benefits of Using an FD Calculator

• Accurate results: Computes maturity and interest instantly
• Comparison tool: Evaluate multiple banks and interest rates
• Time saver: Avoids manual calculations or spreadsheet work
• Free to use: Accessible online without any cost