FD Calculator
An FD Calculator helps you determine the maturity amount and interest earned on a fixed deposit over a given tenure, based on the principal amount, interest rate, and compounding frequency.
Compound Interest Formula (most commonly used by banks):
Where:
- A = Maturity Amount
- P = Principal (Initial Deposit)
- r = Annual Interest Rate (in decimal)
- n = Number of compounding periods per year
- t = Time (in years)
Interest Earned = A – P
Example:
Aman has a FD of ₹1,00,000 for 3 years at 6% rate of interest and n that bank the compounding frequency is quarterly so the maturity amount earned is ₹119556 after that total interest earned is
Interest Earned = 119556 – 100000 = ₹19,556
Steps to Use FD Calculator
- Enter the Principal Amount.
- Enter the Time Duration (in months/years).
- Enter the Interest Rate (% per annum).
- Choose the Compounding Frequency (Yearly, Quarterly, Monthly).
- Click Calculate and observe
FAQs
What is a Fixed Deposit (FD)?
A fixed deposit is a savings instrument offered by banks where you deposit money for a fixed tenure and earn guaranteed returns at a fixed interest rate.
Is the interest earned on FD taxable?
Yes, interest earned above ₹40,000 in a financial year (₹50,000 for senior citizens) is subject to TDS under Section 194A of the Income Tax Act.
What are the compounding frequency options?
Interest on FDs may be compounded:
Annually, Quarterly, Monthly
Is the interest compounded in Fixed Deposits?
Yes, most FDs compound interest quarterly, but some may offer monthly or yearly compounding.
Can I change the compounding frequency in the calculator?
Yes, most calculators allow you to choose between quarterly, monthly, semi-annual, and annual compounding.
Is it safe to invest in FDs?
Yes, FDs are generally considered low-risk investments, especially those held with reputed banks and institutions. In India, deposits up to ₹5 lakh are insured by DICGC.