Fixed Deposit Calculator

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What is a Fixed Deposit?

A fixed deposit (FD) is a financial instrument that majorly all banks and non-banking financial companies (NBFC) provide. Under a fixed deposit comes with a flexible duration, guaranteed, and predetermined rate of interest. Irrespective of the market fluctuations you will always earn the predetermined interest on your FD investment. You can invest for a tenure ranging from 7 days to 10 years. The more the deposit amount for a longer period, the higher will be the applicable interest rate and interest earned due to the power of compounding.

What is the FD Calculator?

The fixed deposit calculator helps an investor estimate the FD maturity amount for a fixed tenure. With the use of an FD calculator, you can estimate the interest income before making an investment. The FD calculator takes the investment amount, prevailing interest rate, and tenure as an input. It provides the wealth gained and maturity amount as the output. 
The fixed deposit calculator only provides an estimation of wealth gained and does not provide any assurance or claim the value estimated based on the inputs provided. You can use CashZeni simple and easy-to-use online calculator to estimate the maturity of FD.

Simple Interest on Fixed Deposit

Simple interest is the interest earned on the principal amount invested at the predetermined interest rate during the investment tenure.
Formula for calculation

Simple Interest = (P * R * T)/ 100

  • P– Principal amount invested
  • R– Rate of interest (%)
  • T– Tenure

Example on Simple Interest

Mr. Arun invested Rs 100,000 for 10 years at an interest rate of 5% per annum. Simple Interest = (Rs 100,000 * 5 * 10 years)/ 100 = Rs 50000
Principal amount invested is Rs 100,000
Rate of interest (%) is 5% per annum
The tenure of the investment made is 10 years
Maturity Value = Principal amount + Simple Interest

= Rs 100,000 + Rs 50,000
= Rs 150,000

Compound Interest on Fixed Deposit

Compound interest is the interest earned on the principal amount invested and the interest earned. The interest rate is raised to the number of periods (years) for which the interest will be compounded and multiplied to the principal amount invested.
Compound Interest Formula for calculation

A = P (1+r/n) ^ (n * t)

  • A = Maturity Amount
  • P = Principal amount invested
  • r = Rate of Interest (in decimals)
  • n = number of compounding in a year
  • t = number of years

Example on Compound Interest

Mr. Arun invested Rs 1,00,000 for 10 years at an interest rate of 5% per annum compounded quarterly
Here,

Principal amount invested is Rs 100,000
Interest Rate is 5%
Number of compounding in a year is 4 i.e. 1 every quarter
Number of years of investment is 10 years

A = 1,00,000 (1+0.05/4) ^ (4*10)
A i.e. maturity amount = Rs 1,64,361
Interest amount = Rs 1,64,361 – Rs 1,00,000 = Rs 64,361

How can an FD calculator help you?

Calculating the maturity amount of an FD can be a complicated and time-consuming process. An online FD calculator enables one to figure it without breaking a sweat.

  • FD maturity calculations are complex involving multiple variables. A Fixed deposit calculator does all the hard work and gives you accurate figures just at the click of a button.
  • It helps you save a lot of time on these complex calculations.
  • A fixed deposit return calculator enables you to compare the maturity amount and interest rates of FDs offered by different financial institutions. You can make an informed decision when you have all the figures at your disposal.

Advantages of using FD calculator India

Know the exact amount you will receive at the time of FD maturity using the FD amount calculator.

There are several other advantages of using these calculators –

  • Get the exact amount you are eligible for at the end of your maturity period and plan your future accordingly.
  • Both of these calculators are free for unlimited use by registered users.
  • Compare the maturity amount of different financial institutions easily.

Besides the Fixed deposit calculator, you can easily plan your finances using the following calculators. All of our offerings are free to use and you can use them as frequently as you want.

Frequently Asked Questions

How is the interest on a bank FD calculated?

Usually, the interest for FD with a period of 6 months or less is calculated at simple interest. Compounding of interest is done for FDs with a term period of more than 6 months. When going for monthly interest payout, banks mostly calculate interest on discounted rates.

What are the details required to use an Fixed Deposit Calculator?

Deposit amount, tenure of the deposit as well as the prevailing FD rates are required to use an Fixed Deposit calculator.

What is the minimum tenure in a bank for which one can invest in a fixed deposit?

Customers can deposit for a minimum of 7 days in a fixed deposit. However, this figure may be higher for some banks.

Is the interest earned on a fixed deposit taxable?

Yes. The interest earned on an FD is taxable. However, as per the Section 80C of the Income Tax Act, 1961, investors can claim deductions for up to Rs. 1.5 lakh per financial year.

Is fixed deposit a better investment?

A fixed deposit provides interest higher than the interest on the savings account balance. So, it is better to invest in an FD than your money lying in a savings account. However, an investor must also evaluate other investment options that provide a return higher than a fixed deposit. These other investment options are debt mutual funds, tax saving mutual funds. These options provide returns higher than fixed deposits but also comes along with a market fluctuation risk.