Fixed Deposit Calculator
The fixed deposit (FD) calculator will help you calculate the maturity value of the investment if it grows at a certain interest rate.
How to use it
The maturity value of the deposit will depend on the amount of investment, duration of the deposit, interest rate, and on the frequency of interest pay-out which can be monthly or quarterly, or a cumulative deposit.
You will have to enter the date of opening of the FD, and then enter the amount of deposit which has to between Rs 500 and Rs 10 lakh. Thereafter, choose the frequency of the interest pay-out. For monthly and quarterly pay-outs, reinvestment, the duration has to be entered in days, months or years. The short term duration can be between 1-31 days.
Lastly, enter the annual rate of interest at which the fixed deposit investment has been made.
One can use the slider to put in different fixed deposit amounts to arrive at the final maturity value.
What it shows
On submitting the above information, the calculator will show the final maturity value of investment. Based on the date of deposit and the tenure, the maturity date of the investment will also be shown. In addition, the break-up of maturity value, i.e., the investment amount and the interest earned will be shown separately.
How the result is arrived at
The formula used for arriving at the maturity value of a fixed deposit over a certain period at a certain interest rate is:
The final maturity amount will depend on the compounding that takes place, which can be monthly, quarterly, half-yearly or annual.
The formula for annual compounding is : A = P (1+R/100) ^N
Here, A is the maturity amount in Rs. , the principal amount is 'P' in Rs., the total period 'N' in years, and the interest rate R in percentage are the major components of compound interest calculation.
If the compounding is quarterly, then A= P (1+(R/4)/100) ^4N