Calculate Return on FD

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)

    = Rs. 1,50,000

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