An FD Calculator (Fixed Deposit Calculator) is a financial tool that calculates the maturity amount and interest earned on a fixed deposit investment. It helps investors plan and manage their savings by providing insights into the potential returns and growth of their fixed deposits over a specified tenure.

What is FD (Fixed Deposit)?

FD, or Fixed Deposit, is a financial instrument provided by banks or financial institutions where investors deposit a lump sum amount for a fixed period at a predetermined interest rate. Upon maturity, the investor receives the principal amount along with the accrued interest. It is a popular investment option for those seeking a safe and guaranteed return on their savings, commonly used for short-term or long-term financial planning.

FD Calculator Formula

The formula to calculate the maturity amount for a Fixed Deposit (FD) is as follows:

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

Where –

• A is the maturity amount
• P is the principal amount (initial investment)
• r is the annual interest rate (in decimal)
• n is the number of times the interest is compounded per year
• t is the tenure (in years)

The interest can be calculated by subtracting the principal amount from the maturity amount:

I = A − P

How to Calculate Maturity Amount for FD?

To compute the maturity amount for a Fixed Deposit (FD), use the formula: A = P * (1 + r/n)^n*t. Here, P represents the principal amount, r is the annual interest rate (in decimal), n is the number of times interest is compounded per year, and t is the tenure in years. This formula helps in determining the total amount you will receive at the end of the deposit period.

Example:

If you invest ₹1,00,000 in a fixed deposit at an annual interest rate of 7% for 5 years, compounded annually (n = 1), then the maturity amount will be:

A = ₹1,00,000 * (1 + 0.07/1)^(1 * 5) = ₹1,40,255.

You’ll receive ₹1,40,255 at the end of 5 years, which includes ₹40,255 as interest.

How to Use FD Calculator?

• Input Deposit Details: Enter the principal amount, interest rate, and tenure into the FD calculator.
• Review Results: The calculator instantly provides the maturity amount and interest earned.
• Adjust Parameters: Modify the principal amount, rate, or tenure to compare different investment scenarios.
• Plan Investments: Use the FD calculator to plan your investments and understand the potential returns.

Features of FD Calculator

• Accurate Investment Planning: Precisely calculate the maturity amount and interest earned, aiding investors in planning their fixed deposit investments for various amounts, tenures, and interest rates.
• Dynamic Visualization: Instantly visualize the impact of changes in the principal amount, tenure, and interest rate, empowering users with dynamic and insightful variations in maturity amounts.
• Responsive User Interface: Enjoy a seamless experience with a responsive interface that adapts effortlessly to different devices, providing accessibility and ease of use.
• Comprehensive Financial Insights: Gain comprehensive financial insights with a detailed breakdown of investment components, including principal, interest, and maturity amount, enhancing financial decision-making.