Fixed Deposit Calculator
Calculate the maturity amount and interest earned on your fixed deposit investments.
Adjust Parameters
₹1,000₹1,00,00,000
1%15%
0.25 years20 years
Shows inflation-adjusted returns
Fixed Deposit Details
How to Calculate Fixed Deposit Returns
The maturity amount for a Fixed Deposit is calculated using the compound interest formula:
A = P × (1 + r/n)^(n×t)
Where:
- A = Maturity amount
- P = Principal amount (initial investment)
- r = Annual interest rate (in decimal form)
- n = Compounding frequency per year
- t = Time period in years
Example Calculation
For an FD of ₹1,00,000 at 7% interest for 5 years with quarterly compounding:
- P = 1,00,000
- r = 7/100 = 0.07
- n = 4 (quarterly compounding)
- t = 5 years
- A = 1,00,000 × (1 + 0.07/4)^(4×5) = ₹1,41,059
- Interest earned = ₹41,059
Compounding Frequency Impact
Different compounding frequencies affect your returns:
- Annually: Compounded once per year
- Semi-annually: Compounded twice per year
- Quarterly: Compounded four times per year
- Monthly: Compounded twelve times per year
- Daily: Compounded 365 times per year
- Higher compounding frequency = higher returns
About Fixed Deposits
A Fixed Deposit (FD) is a financial instrument provided by banks and NBFCs that offers investors a higher rate of interest than a regular savings account. The money deposited in an FD remains locked in for a fixed period, ranging from a few days to several years.
Benefits of Fixed Deposits
- Safe and secure investment option
- Guaranteed returns
- Higher interest rates than savings accounts
- Flexible tenure options
- Loan facility against FD
- Tax saving options available (Tax Saver FDs)
How to Use This Calculator
- Enter your principal investment amount
- Set the interest rate offered by your bank
- Choose your investment time period
- Select the compounding frequency
- View the projected maturity amount and interest earned