## About FD Calculator

A fixed deposit is a type of term investment that is typically offered by banks and NBFCs. It has various terms and conditions.

The interest rate on a deposit is fixed at the time of opening the account. It is also independent of the market.

**The formula to determine FD maturity amount**

There are two types of FD that you may avail – simple interest FD and compound interest FD.

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)

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

**Read Further:**

Benefits of SIP investment