# FD Calculator: Calculate Fixed Deposit Interest Rates & Maturity Amount

Fixed Deposit is the kind of investment or we can say investment offered by the banks and other non-financial companies (NBFC). The Fixed Deposit gives you the highest interest rates than other savings accounts and it also does not compromise on the safety of one’s returns like the other option Mutual Funds. The Fixed Deposit interest is paid to the investor using two different methods:

• Paid at Regular Intervals
• Paid at Reinvested

This totally depends on the investor’s choice. The FD maturity fund is paid at the end of the tenure.

## Fixed Deposit Calculator

The FD calculator will help you to calculate how much rate of interest one can get by their investment in Fixed Deposit. In simple words, the FD calculator is utilized for calculating the maturity value of the investment if it will grow at a certain interest rate.

### How to Use FD Calculator?

The investor needs to collect some information like:

• Rate of Interest
• Deposit Amount
• Tenure (in years/months)

When all the investors fill in all details then they just have to click on the “Calculate” button post which is an estimated amount and this will be displayed just below our calculator.

### How to Calculate Fixed Deposit Interest Rates?

The Fixed deposit interest is calculated by using below given two methods one is compound interest and simple interest.

### What is Simple Interest?

Simple interest is the kind of interest that can be earned on an investment at the pre-decided rate of interest for a particular period of time. This is calculated just by multiplying the whole principal amount, the rate of the interest per annum, and the time to which the investment or money is lent in years.

#### Simple Interest formula:

• SI = P x R x T/ 100
• SI = Simple Interest
• P = Principal (amount invested)
• R = Rate of Interest (in %)
• T = Tenure (depositing time in FD)

For example, if a sum of Rs 10,000 is invested for 5 years at a 10% interest rate per annum, then at the time of maturity,

• SI = 10,000*10*5/100 = Rs 5,000
• Maturity Amount = Rs 15,000

### What is Compound Interest?

Compound Interest is nothing but a kind of interest it’s earned on the principal and interests. It is calculated by multiplying the principal amount with its interest rate raised to no. of the period in the year for which the interest will be compounded.

#### Compound Interest Formula

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

Where,

• A = Maturity Amount
• P = Principal amount
• r = Rate of Interest (in decimals)
• n = number of compounding in a year
• t = number of years

For Example, if the sum of Rs 10,000 is invested for 5 years at a 10% compound interest rate (quarterly compounding), then at the time of maturity,

• A= 10,000 {1 + (0.1/4)} ^ (4 * 5)
• A = 10,000 (1 + 0.025) ^ (20)
• A = 10,000 (1.025) ^ (20) = Rs. 15,449 (approximately)

Compound Interest (CI) Earned over 5 years = Maturity Amount – Principal Amount

CI = 15,449 – 10,000 = Rs. 5,449

### Benefits of Using a Fixed Deposit Calculator

Below we have discussed a few advantages of using our FD calculator:

• It’s an automatic calculator there will no possibility of errors.
• This tool is free of cost and customers could use it many times.
• FD calculator is helpful for comparing returns for the various combinations of FD rates, tenure, and amount.

#### Conclusion

The article is all about the Fixed Deposit Calculator. The article explains the FD calculator advantages and basic formula by using that one can find it manually.