FD Calculator

A fixed deposit calculator is an online tool designed to help an applicant get an idea of his expected earnings at the end of a fixed deposit tenure. It takes into account the principal amount, tenure, and applicable rate of interest to calculate the maturity amount in the end. So, before you invest in a fixed deposit, this calculator gives you an idea of your earnings in advance, thus helping you make a wise financial decision.

You can calculate the interest on your fixed deposits and the total amount you will receive on its maturity. Follow these steps to use the ET Money FD calculator:

• Fill in the amount you would like to invest in FD
• Choose the Interest rate and the compounding period for interest, i.e., monthly, quarterly or yearly
• Select the tenure of the fixed deposit or duration for which you want to invest

So using the FD return calculator, you will be able to see your total investment, interest earned, and maturity value at the end of the fixed deposit's tenure.

You can use the ET Money FD Maturity Calculator to know your fixed deposit maturity amount. Just go to the fixed deposit calculator online and choose the type of investment. Then, choose the tenure and your principal amount. Once you input this data into the fixed deposit interest calculator, the total maturity amount of the fixed deposit along with the interest you will earn on the principal will be automatically displayed.

There are two methods to calculate interest on fixed deposits - simple interest and compound interest. Let us look at both of them.

Simple Interest

The formula for simple interest is;
SI = P x R x T / 100
Where,
SI = Simple interest
P = Principal amount (amount invested)
R = Rate of interest (in %)
T = Tenure of the fixed deposit

Let us assume, you invest a sum of ₹15,000 for 5 years at 10% interest rate per annum.

On maturity, the simple interest you earn will be:
₹15,000 x 10 x 5 / 100 = ₹7,500 Therefore, the total maturity amount is ₹22,500 (₹15,000 + ₹7,500)

Compound Interest

The formula for compound interest is;
*A = P (1+r/n) ^ (nt)**
Where,
A = Maturity amount
P = Principal amount
r = Rate of interest (in decimals)
n = number of compounding in a year
t = number of years

Let us assume, you invest ₹10,000 for 3 years at 10% interest rate compounded quarterly.

At the time of maturity, the calculations are as follows:
A = 10,000 [1+ (0.10/4)] ^ (4*3)
A = 10,000 (1 + 0.025) ^ (12)
A = 10,000 (1.025) ^ (12)
A = ₹13,449 (approximately)

Thus, compound interest earned over 3 years comes to ₹13,449 - ₹10,000 = ₹3,449. FD interest calculator uses the compound interest formula to calculate FD interest earned and the final maturity amount.

There are many advantages of using ET Money’s FD calculator. Some of these are:

• Using the calculator requires minimal effort as you donot have to use the complex FD calculation formula
• The FD calculator saves time since you get the result in seconds
• This free online FD calculator is accurate, so results will be error-free
• Due to the accuracy of FD calculator, you with be able to plan your finances better

However, do keep in mind that all FD calculators have a limitation. The FD calculator cannot calculate how much tax you might have to pay on your FD returns.