# FD Calculator

## Calculate your compound interest.

## What Is a Fixed Deposit Calculator?

In India, fixed deposits are one of the most popular investment options. It provides stable or guaranteed returns. Also, you can pick a duration that works for you. You can open a fixed deposit for a term ranging from seven days to 10 days.

Several banks and financial institutions provide fixed deposits to their customers. A fixed deposit calculator or FD calculator is an online financial calculator that you may use to estimate your accumulated amount and interest at maturity.

Based on the principal amount, tenure of investment, type of deposit, and interest rates, the FD calculator online assists you in calculating the maturity amount.

In simple terms, using an FD maturity calculator, you get to know about the final amount you’ll be receiving from putting your money in fixed deposits.

## How does the FD calculator work?

The working of a fixed deposit calculator is convenient and easy. It works based on the information you feed into it. The inputs we are talking about are

- Principal amount
- Interest rate
- Type of deposits, i.e. cumulative or payout
- Tenure of investment.

First, you need to add the principal amount, which is the initial amount that you will deposit to open a fixed deposit.

Next comes the expected interest rate. Typically, the higher the term of your fixed deposit, the higher is the interest rate. You need to note that online FD calculators can vary from one another. For instance, if you use a bank’s FD calculator, you don’t have to add an interest rate. The calculator will take the current bank’s interest rate on FD on the time frame and calculate the maturity amount. As a result, you won’t be able to compare the future value of the principal amount under different interest rates. With Upstox’s Online FD Calculator, you can compare the different scenarios.

You can also select the type of fixed deposit that you want to open. If you don’t need the interest to be paid out to you, you can choose the cumulative option. In this option, you will receive the interest cumulated throughout the tenure and the principal at maturity.

However, if you need the interest to be paid out to you quarterly or monthly, you can select the quarterly or the monthly payout option from the drop-down list.

Time is another important factor you need to add to the fixed deposit calculator. You will have the option to add your FD tenure in months or years.

After all, the required inputs are filled, the digital FD calculator will generate the final output, i.e. the maturity amount and the interest earned.

Individuals are also keen on opening a post office FD as it offers slightly higher interest than bank FDs. Also, many individuals consider post office FD to be safer than bank FDs. You can use the post office FD calculator to know your maturity amount and interest earned on post office FD.

Alternatively, use the FD return calculator to help you decide how much, which FD and how long to invest to reach your goals.

## What Is the Formula of the FD Calculator?

The interest on a fixed deposit can be calculated in two ways: simple interest and compound interest. The FD formula that will be taken will depend on the type of deposit.

**Simple Interest**

In the case of simple interest, the principal amount remains constant throughout the tenure, and there is no concept of interest on interest.

The simple interest formula to calculate interest rates and maturity amount is as below:

Interest: SI= P x R x T / 100

Where SI= Simple interest, P=Principal amount, R= Rate of interest, T= Time period(years).

and

Maturity amount: M = P + (P x R x T / 100).

Typically, simple interest formula is used for FDs that mature within a year. Moreover, fixed deposits that offer monthly or quarterly payout use a simple interest formula to calculate the interest as the interest is paid out at regular intervals.

**Compound interest:**

In the case of compound interest FD type, the formulas are as follows.

M = P (1 + r / n) ^ (n x t) where

M= Maturity amount,

P= Principal amount,

r= interest rate,

T= Tenure,

n= number of compounding in a year.

So, the compound interest earned over that period is Maturity amount (M) – Principal (P)

## How Is FD Interest Calculated?

FDs offer stable and steady interest. Depositors can easily calculate the interest amount on the principal through the FD interest calculator online as the FD interest rates stay fixed throughout the tenure.

Let us know how your FD interest would be calculated.

Simple interest FD account

In a simple interest fixed deposit account, interest is calculated on the principal amount. We have seen earlier that it is calculated by multiplying the principal amount, interest rate and period.

It can be denoted as:

I= P x R x T / 100

Where P= Principal amount, R= interest rate, T= Time period(years).

Let us take an example.

You plan to book an FD of Rs 20,000 for five years in a simple interest FD account. The bank is offering a 7% p.a interest rate. So let us find out interest rates at the end of each year.

Year | Interest earned at the end of each year |

1 | 20,000 x 7 x 1 / 100 = 1,400 |

2 | 20,000 x 7 x 1 / 100 = 1,400 |

3 | 20,000 x 7 x 1 / 100 = 1,400 |

4 | 20,000 x 7 x 1 / 100 = 1,400 |

5 | 20,000 x 7 x 1 / 100 = 1,400 |

At the end of 5 years, total interest comes out to be 7000 i.e., (1400 x 5). Hence, you will get a total of Rs 27,000 after five years.

Compound Interest FD Account

In this account, interest is calculated on the principal amount and interest earned in the previous year. It is considered better than simple interest FDs as it focuses on the principle of compounding and generates more returns.

Let us take the same amount at the same interest rate and for the same number of years to understand this better. Check out how the interest earned on the previous year is added to the principal, which makes more interest. The simple interest formula is used but the principal amount increases every year.

Year |
Principal Amount |
Interest rate |
Interest earned |

1 | 20,000 | 7% | 1400 |

2 | 21,400 | 7% | 1498 |

3 | 22,898 | 7% | 1603 |

4 | 24,501 | 7% | 1715 |

5 | 26,216 | 7% | 1835 |

Maturity Amount | 28,051 |

You see, the interest amount rises after each passing year. Interest in the previous year adds to the principal amount, and the final rate is calculated on the principal amount +interest.

Hence, the amount is rising each year due to the compounding effect.

We can use the compounding interest to figure out the compound interest:

M = P (1 + r / n) ^ (n x t) where

M= Maturity amount,

P= Principal amount = 20,000

r= interest rate = 7%

T= Tenure = 5 years

n= number of compounding in a year = 1

Maturity amount = 20,000(1+7%/1)^(1*5) = Rs. 28,051.03

Interest earned = Rs.8,051.03

You are getting a higher return for the same amount invested, i.e. Rs 8,051.

If you still don’t get it or have no time to perform these calculations, fixed deposit interest calculators are for your rescue.

## What Are the Benefits of a Fixed Deposit Calculator Online?

- Reliable

An online fixed deposit calculator is a reliable tool as it is automatic and gives near to accurate results.

- No Expert Knowledge Needed

As long as you know how to use an FD calculator, you are good to go, as it is easy to understand and use. It will perform all the calculations even if you do not have advanced knowledge in this field.

- Customisable

Since everyone has different amounts to invest, varying tenure to keep money invested, and unique goals, the FD maturity calculator will produce customised results according to your needs.

- Time saver

Since all the complex calculations are done instantly after adding the required information, it saves you ample energy and time.

- Financial planning

Planning for finances is one of the undeniable benefits of online calculators, as you get to know about the maturity amount and interest earned at the end of the investment period.

## How Upstox Is the Best Fixed Deposit calculator Online?

Upstox is the best FD return calculator as it is convenient and highly reliable. It is free to use and helps you plan your finances better.

Further, it will show you the interest that you can earn by booking a FD with different financial institutions and can be used as many times as you need without any cost.

## Frequently Asked Questions

### How to use the FD calculator?

Using an **FD calculator** is simple and easy. You can use it through the following steps:

**Step 1**: Depending on your age, you can select between the normal citizen or senior citizen option.

**Step 2**: Pick your preferred type of FD. Example- Cumulative Fixed Deposit or Non-Cumulative Fixed Deposit.

**Step 3**: Fill in the amount you wish to invest (principal amount).

**Step 4**: Decide your desired period of investment.

Finally, hit the “calculate” button, and you will see the maturity amount after the investment tenure gets over. Alternatively, you can determine the principal amount to invest and investment tenure by entering your desired returns.

### Is FD interest calculated monthly or yearly?

FD interest is the annual interest provided by banks and other financial institutions. However, if you opt for the payout option, the annual interest is used to calculate the monthly and quarterly interest.

### Can I get monthly interest on fixed deposits?

Most banks offer monthly interest on fixed deposits. You can get monthly returns on FDs if you choose the Cumulative FD type and opt for “monthly payouts” as the FD option.

### What is the maturity amount?

The maturity amount is the final amount you get when your FD tenure gets over. It is a total of the principal amount and interest earned.

Maturity amount = Principal amount + Total interest earned.

### What are the factors affecting FD interest rates?

Citizen type and tenure affect interest rates. Most banks give a higher FD interest to senior citizens. Also, they offer higher interest rates for FDs with a longer term.

### Do we have separate fixed deposit calculators for different banks?

Yes. Each bank has its own FD return calculator. However, the interest rate will be pre-filled, and you may not be able to carry out comparisons. You can use UPTSOX’s fixed deposit calculator online to compare the interest earned at different rates.

### Can we use the fixed deposit calculator on mobile?

Yes, you can use an FD return calculator on mobile phones effectively.

### What is a cumulative fixed deposit?

In cumulative fixed deposits, interest is paid on interest earned. In this type of FD, the returns are comparatively higher than non-cumulative FDs because of wealth accumulation due to compounding. The amount compounded over the years is paid fully at the maturity of investment tenure.

### What is a non-cumulative fixed deposit?

In non-cumulative fixed deposits, the returns(interests) are paid periodically, i.e. monthly, quarterly, half-yearly or yearly. You can choose the return period as per your preference.

### How Is FD Return Calculated?

The inflation rate in the country and the RBI’s repo rate are the two most important factors that determine the bank’s fixed deposit interest rate. Depending on these various options, the banks and other financial institutions will calculate FD interest rates and revise the interest rates from time to time. However, the interest rate remains fixed throughout the tenure.

## Similar Calculator

Disclaimer:

This calculator is meant to be used for indicative purposes only. It is designed to assist you in determining the appropriate amount of prospective investments. This calculator alone is not sufficient and shouldn’t be used for the development or implementation of any investment strategy. Upstox does not take the responsibility/liability nor does it undertake the authenticity of the figures calculated therein. Upstox makes no warranty about the accuracy of the calculators/reckoners. The examples do not claim to represent the performance of any security or investments. In view of the individual nature of tax consequences, each investor is advised to consult his/her own professional tax advisor before making any investment decisions on the basis of the results provided through the use of this calculator.