FD Calculator 2025

What is a Fixed Deposit?

Fixed deposit is a financial instrument where depositors invest a lump sum in a bank where it stays invested for a finite period. In return, you will earn a pre-determined interest on your deposits, which is generally higher than a savings account

Crores of Indians are benefiting out of this scheme through various banks. In fact, the government was able to bring a vast section of people under banking after luring them with lucrative FDs. It is the most preferred method of investment

What is a Fixed Deposit Calculator?

A Fixed deposit calculator is a handy tool which helps you calculate the estimated value of your investment in FD based on the amount you deposit, interest rate, and tenure

How does a Fixed Deposit Calculator work?

The Fixed Deposit Calculator uses a simple formula to calculate the maturity amount. It takes into account the principal amount, interest rate, and tenure of the FD. The formula used can be calculated into two ways for simple interest FD and Compound Interest FD4

For Simple interest FD

M = P + (P x r x t/100)

where –

• P is the principal amount that you deposit
• r is the rate of interest per annum
• t is the tenure in years

Note: Simple interest FD is applicable only on deposits that lasts for a few days

For Compound Interest FD (fairly common)

M= P + P {(1 + r/100) t – 1}

P – Principal

r – rate of interest

t – tenure in years

Example:

For example, you make an investment of 5 Lakhs at an interest rate of 9.1% for 5 years then your return would be 500000+ 500000(1+8.1/100)5-1 which is ₹7,84,079

Advantages of Fixed Deposits

• Guaranteed Returns: Fixed deposits offer a fixed interest rate, ensuring guaranteed returns on your investment
• Higher Interest rates: Fixed Deposits offer higher interest rates compared to regular savings account.
• Financial Discipline: It encourages financial discipline by locking your money for specific period so that you do not spend unnecessarily
• Collateral for Loan: Fixed deposits can be used as a collateral for loan, providing an extra layer of security and trust. You can avail personal quickly during emergency times by utilizing your FD as collateral.

Benefits of a Fixed Deposit Calculator:

• Easy and quick: It saves you the hassle of manual calculations.
• Accurate results: It provides the precise future value of your deposit based on your tenure and interest rate
• Comparison tool: It allows you to compare different FD options so that you can take a well-informed decision
• Financial planning: It helps you plan your future investments in a way that you are financially secure

How to use a Fixed Deposit Calculator:

1. Enter the principal amount that you wish to deposit
2. Enter the interest rate offered by the bank or financial institution
3. Type the tenure that you want to invest
4. Click on “Calculate” to get the estimated future value of your investment

FAQs for Fixed Deposit Calculator:

1. Can I use the calculator for different interest rates offered by different banks?

The formula is same for all the banks. So, you can use the calculator for different interest rates

2. Does the calculator consider compounding interest?

Yes, most FD calculators automatically factor in compounding interest for accurate calculations.

3. What is the interest on 5 lakh FD for 1 year?

The interest rate depends on various banks and it varies from bank to bank

4. What happens if I break the FD before maturity?

The calculator doesn’t take into account pre-mature withdrawal penalties, so, you cannot predict the accurate amount

5. Does the calculator consider taxes on FD interest?

No, the calculator won’t take any taxes into consideration