FD Calculator
Calculate maturity value of Fixed Deposits.
Investment Details
Year-wise Breakdown
| Year | Invested | Returns | Total Value | Growth |
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Calculate your fixed deposit maturity amount, total interest earned, and quarterly compounding returns with our free online FD calculator. Compare deposit amounts, interest rates, and tenures easily.
What is a Fixed Deposit?
A Fixed Deposit (FD) is a term deposit account offered by financial institutions where a lump sum is deposited for a fixed duration at a agreed interest rate. At the end of the tenure, the principal amount plus interest earned is returned to the depositor.
How Fixed Deposit Compounding Works
Fixed deposit interest is commonly compounded on a quarterly basis. Each quarter, interest earned during that period is added to the principal balance, and subsequent interest is calculated on the new higher balance.
FD Compound Interest Formula
- A = Total Maturity Amount
- P = Principal Deposit Amount
- r = Annual Interest Rate (in decimal, e.g., 7% = 0.07)
- n = Compounding Frequency per Year (n = 4 for quarterly compounding)
- t = Tenure in Years
Principal and Interest Earnings Explained
Understanding your fixed deposit maturity value:
- Deposit Principal: The initial money you deposit into the FD account.
- Total Interest Earned: The guaranteed return paid by the financial institution over the deposit tenure.
- Maturity Amount: The combined total of your principal and total interest returned at maturity.
Fixed Deposit Calculation Example
Scenario: Suppose you deposit ₹1,00,000 in a fixed deposit for 3 years at an annual interest rate of 7.0% with quarterly compounding.
Inputs
- Principal Amount (P): ₹1,00,000
- Annual Interest Rate (r): 7.0% = 0.07
- Compounding Frequency (n): 4 (Quarterly)
- Tenure (t): 3 years
Calculation
- Formula: A = 1,00,000 × (1 + 0.07/4)^(4 × 3)
- Rate per quarter = 0.0175
- Value of (1.0175)^12 ≈ 1.231439
- Maturity Amount ≈ ₹1,23,144
Result: Your initial deposit of ₹1,00,000 yields ₹23,144 in total interest over 3 years, providing a final maturity payout of ₹1,23,144.
Effect of Interest Rate on Fixed Deposit Returns
Interest rates determine total FD returns. On a ₹1,00,000 deposit for 3 years (quarterly compounding):
- At 6.5% interest rate, maturity amount is ₹1,21,341 (Interest = ₹21,341).
- At 7.5% interest rate, maturity amount rises to ₹1,24,972 (Interest = ₹24,972).
Effect of Deposit Tenure on Maturity Value
Comparing a 3-year tenure with a 5-year tenure on a ₹1,00,000 deposit at 7% interest:
- 3-Year Tenure: Maturity amount is ₹1,23,144 (Interest = ₹23,144).
- 5-Year Tenure: Maturity amount rises to ₹1,41,478 (Interest = ₹41,478).
Holding the deposit for 2 additional years generates ₹18,334 in additional compound interest.
How to Use an FD Calculator
Calculate your fixed deposit maturity value in four simple steps:
- Input Deposit Amount: Enter the lump sum you plan to invest.
- Set Interest Rate: Type the annual interest rate offered by the institution.
- Select Tenure: Choose your deposit duration in years or months.
- Review Output: Instantly view total interest earned and final maturity payout.
Things to Consider Before Opening an FD
- Choose Suitable Tenure: Select a deposit duration that matches your liquidity requirements to avoid premature withdrawal fees.
- Compare Rate Slabs: Check rate tables for different tenure options before locking in your funds.
- Understand Tax Rules: Remember that fixed deposit interest income is taxable according to your applicable income tax category.
Disclaimer
This fixed deposit calculator provides estimates for financial planning purposes only. Final interest payouts and terms depend on institution deposit terms.