One sort of short-term investment that many banks and NBFCs provide is a fixed deposit. It offers fixed or guaranteed returns with flexible tenure options. It is offered by several banks and financial institutions to strike a perfect balance in one's financial portfolio. FD calculator can be used to determine the earned interest and the maturity amount payable at the time of maturity of your FD investment.. Your deposit is locked for a certain amount of time, which can be anything from a week to ten years.
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. 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. Using the calculator requires minimal effort as you don't have to use the complex FD calculation formula
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;
Where,
SI = Simple interest
P = Principal amount (amount invested)
R = Rate of interest (in %)
T= Tenure of the fixed deposit
Compound Interest
The formula for compound interest is;
Where,
A = Maturity amount
P= Principal amount
r = Rate of interest (in decimals)
n = number of compounding in a year
t = number of years
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Ultimate Wealth Pvt. Ltd. makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Unless otherwise specified, all returns, NAV, etc are historical and for illustrative purposes only. Future will vary greatly and depends on personal and market circumstances. The information provided by our blog is educational only and is not investment or tax advice.