Fixed Deposit (FD) Calculator
Maturity Amount: $0.00
Total Interest Earned: $0.00
FD Calculator
What is a FD Calculator?
An FD (Fixed Deposit) Calculator is a tool used to determine the maturity value of a fixed deposit investment based on various parameters such as the principal amount, interest rate, and tenure. It’s helpful for individuals planning to invest in fixed deposits to estimate their returns over a specific period.
Why use an FD Calculator?
- Estimate Returns: It allows investors to forecast the returns they can expect from their fixed deposit investments, helping them plan their finances more effectively.
- Comparison: By inputting different principal amounts, interest rates, and tenures, investors can compare the potential returns of various fixed deposit options before making investment decisions.
- Financial Planning: An FD Calculator aids in financial planning by providing insight into how different investment scenarios may impact savings and future financial goals.
- Quick and Easy: It offers a quick and hassle-free way to calculate the maturity value of fixed deposits, saving time and effort compared to manual calculations.
Formula to calculate the FD
Input Parameters
- Principal Amount (the initial investment)
- Interest Rate (the rate of interest offered by the bank)
- Tenure (the duration for which the investment is made, usually in months or years)
Calculation of Interest
The FD Calculator computes the interest earned on the principal amount using the formula for simple interest or compound interest, depending on the type of FD (simple or compound).
- For Simple Interest FD
Interest =
- For Compound Interest FD
A = P x (1 + )nt
Where:
- A is the amount at the end of the investment period.
- P is the principal amount.
- r is the annual interest rate (in decimal form).
- n is the number of times interest is compounded per year.
- t is the time the money is invested for, in years.
Maturity Value Calculation
Once the interest is calculated, it is added to the principal amount to determine the maturity value of the FD.
- Maturity Value = Principal + Interest Earned