Fixed Deposit Calculator

Highlights

  • Fixed deposit calculator, a tool for interest rate and maturity period calculation
  • Read and know its features and benefits on investment

Fixed Deposit is an effective way to earn attractive returns on cash which was currently not used. Investment in a fixed deposit will make your funds work for your future, by grabbing a good interest rate. That is the reason people invest in fixed deposits for a safe and secure future, as it encourages the user to save for the future plan. It is among the most reliable sources to increase the power of money for the user’s future plans. And, the returns on these deposits are calculated through a fixed deposit calculator.

Fixed Deposit @ 9.25%* ROI

About Fixed Deposit Calculator

Fixed Deposit Calculator is an online tool that is designed to assist the user in calculating the return rate of the fixed deposit. The tool makes it easier for you to know the amount of interest you can earn on your deposit principal amount. Also, you can compare the amount of interest earned on different amounts at separate time intervals. It makes it easier for you to choose from the best plan to yield better returns. You can save your time and get the accurate result of your fixed deposit investment with the help of the calculator.

How Could a Fixed Deposit Calculator Works?

It is very easy to use a fixed deposit calculator, you just have to insert the values such as the principal amount of deposit, duration and the rate of interest. Then select type of interest like Simple or Compound and choose the frequency. Once these values are inserted in the FD calculator, the result is automatically generated using the formula.

FD Interest Calculator Formula :

The interest on the fixed deposit is calculated using the interest calculator formula mentioned below :

A = P (1 + r/n) nt

I = A – P

Where, A = is the maturity value of the investment with interest

P = the principal investment amount or the initial deposit

r = the annual rate of interest

n = Interest rate compounded every single year

t = Money invested in a fixed deposit for the chosen period

I = Total interest earned

Illustration:

For Example: If a fixed deposit ₹50,000 is booked for 10 years. Then enter the details of your fixed deposit select type of interest and its frequency. The maturity value of the deposit amount would be ₹1,00,484. From which ₹50,484 is the amount you have earned the interest rate.

Fixed Deposit Calculator 
Investment Amount (in ₹) - 50,000Tenure - 10 years
Rate of Interest (%) - 7Interest Compounding Frequency - Monthly
Maturity Amount (in ₹) - 1,00,484Total Interest Earned (in ₹) - 50,484

Table Showing Interest Earned And Closing Balance

YearInterest Rate (in % p.a.)Opening Balance (in ₹)Interest Earned (in ₹)Closing Balance (in ₹)
1750000361553615
2753615387657491
3757491415661647
4761647445666103
5766103477970882
6770882512476006
7776006549481500
8781500589287392
9787392631893710
1079371067741,00,484

Methods of Interest Calculation

The interest on a fixed deposit is calculated using two methods which are as follows.

Simple Interest – Simple Interest is the interest that is paid in percentage of the principal amount during the investment period. It is the easiest and quickest way to calculate the interest rate. The earned amount calculated using the simple interest will remain the same during fixed deposit maturity.

Compound Interest – Compound Interest is the interest that is calculated as a percentage of the revised amount, which is the original principal plus the accumulated interest of previous periods. In this method the earned interest rate of the previous years is added to the initial principal, thus it increases the principal amount using which the next period interest rate can be calculated. In compound interest, you can receive interest on the principal as well as on the accrued interest during the fixed deposit tenure.

Difference Between Simple Interest and Compound Interest

BasisSimple InterestCompound Interest
MeaningInterest that is calculated on the principal amount is called as simple interestInterest that is calculated on principal and the accrued interest is called as compound interest
PrincipalThe principal amount remains constant throughout the tenure of depositThe principal amount keeps on changing throughout the tenure of deposit
Growth in interestThe interest yield is same for the entire periodThe interest grows gradually during the tenure.
ReturnsLow in comparision to compound interestHigher than the simple interest
FormulaA = P (1 + rt)A = P (1 + r/n) nt

To know the value of your interest earned on the fixed deposit use either method of interest calculation by using the specific fixed deposit calculator.

Simple Interest Fixed Deposit Calculator

A simple interest fixed deposit calculator is the FD calculator that uses a simple interest formula. To generate the maturity and the total interest amount of the fixed deposit, you can take its help. The below mentioned formula is used to calculate the amount of interest.

Simple Interest Formula:

A = P (1 + rt)

Where:

A = Total Amount (Deposit amount + interest rate)

P = Deposit Amount

I = Interest Amount

r = Rate of Interest per year in decimal ratio using r = R/100 formula

R = Rate of Interest per year in percentage (R = r x 100)

t = FD duration for months or year

How Simple Interest Fixed Deposit Calculator is used?

To calculate the interest on the fixed deposit at simple interest use the simple interest fixed deposit calculator. And put the values in their relevant fields to get the correct result.

Enter these three details of your fixed deposit to compute the total interest which is the

  • Investment Amount
  • Period of Investment
  • Rate of Interest

See the example below to understand the working of simple interest fixed deposit calculator –

An investor booked a fixed deposit of ₹ 10,000 for a period of 10 years at a 7% interest rate p.a. And according to the calculations at the end of FD tenure, his deposit amount will be increased to ₹7,000.

Simple Interest Fixed Deposit Calculator 
Investment Amount (in ₹) - 10,000Tenure - 10 years
Rate of Interest (%) - 7
Maturity Amount (in ₹) - 17,000Total Interest Earned (in ₹) - 7,000

Table Showing Interest Earned And Closing Balance

YearInterest Rate (in % p.a.)Opening Balance (in ₹)Interest Earned (in ₹)Closing Balance (in ₹)
171000070010700
271070070011400
371140070012100
471210070012800
571280070013500
671350070014200
771420070014900
871490070015600
971560070016300
1071630070017000

Compound Interest Fixed Deposit Calculator

The compound interest fixed deposit calculator is devised to calculate the maturity value and the interest accrued on the fixed deposit using the compound interest formula. The compound interest formula is mentioned below :

Compound Interest Formula :

A = P (1 + r/n) nt

Where,

A = is the FD maturity period with the interest rate

P = Principal amount invested or the initial deposit of FD

r = Annual interest rate

n = Time period for which the interest is compounded

t =  Investment period for FD

Calculation of Interest Using Compound Interest FD Calculator

To calculate the interest on fixed deposit at the compounded interest rate use the compound interest calculator. For the compounded interest you need to enter the following details which are as follows.

  • Investment Amount
  • Tenure
  • Interest Rate
  • Interest Compounding Frequency

Let’s try out with the help of an example –

Example: A person invests an amount of ₹ 10,000 in the fixed deposit for a period of 10 years. The interest on the deposit is compounded monthly, and to find out the total interest he uses the fixed deposit calculator. The computed maturity value of the deposit is ₹ 20,096.

Fixed Deposit Calculator 
Investment Amount (in ₹) - 10,000Tenure - 10 years
Rate of Interest (%) - 7Interest Compounding Frequency – Monthly
Maturity Amount (in ₹) - 20,096Total Interest Earned (in ₹) - 10,096
YearInterest Rate (in % p.a.)Opening Balance (in ₹)Interest Earned (in ₹)Closing Balance (in ₹)
171000072310723
271072377511498
371149883112329
471232989113220
571322095614176
6714176102515201
7715201109916300
871630070017478
9717478126318741
1071874170020096

Benefits Of Fixed Deposit Calculator

  1. Reduces the manual efforts
  2. Provides accurate result
  3. Fast calculation
  4. Time-saving

You can calculate the maturity value of the various banks using their specific fixed deposit calculators and tools such as ICICI FD Calculator, HDFC FD Calculator and many more respectively.

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