What is an FD Calculator?
FD stands for Fixed Deposit which is a type of investment where a particular amount of money is deposited in the bank for a fixed period, and after the time is completed, you will receive a certain percentage of interest. It can last 7 days or as long as 10 years. FDs are popular and in demand because of the better rates of interest than those of a regular savings account. Now, an FD Calculator (also similar in function to an RD Calculator) is a smart, efficient online tool that will assist you with calculations of the amount that you will be getting after the maturity of your FD tenure.
All an investor needs to do is choose the amount of deposit every month, the expected rate of return, and the time period and the calculator shows you what income you will get in the end. Our FD calculator https://sip-calculator.in/beta/ helps you do this easily, fast and accurately. It saves you from doing hard manual calculations and, in less time, improves your money management in just a few clicks.
How Can an FD Calculator Help You?
Calculating the FD amount by yourself is not an easy thing to do and we understand it. There are a lot of factors to consider, like monthly investment amount, expected rate of return and time period you want to stay invested. Even if you do this calculation by yourself, it is very time-consuming as well and the accuracy is not guaranteed. So, an FD calculator makes it easy and simple for you. You need to choose the required details and you’re all set to go.
- FD Calculator will instantly give you accurate results while saving you valuable time as well as effort.
- It also helps you compare FDs across different banks and firms in India.
- This will help you check what kind of interest you will be getting and you can compare them to choose the best option for your needs.
Overall FD calculator is a simple, smart and amazing way to help you plan and manage your investments wisely, without making it too hard.
Formula To Determine FD Maturity Amount
There are generally two types of Fixed Deposits (FDs) available in India, based on the method of interest calculation; Simple Interest & Compound Interest. There is a formula to find out the matured FD amount, and it can vary based on the types of FDs. We will break both of them to you with their respective examples:
1. Simple Interest
In Simple Interest FD, the rate of interest is calculated only on the original amount you deposit every year. The formula to calculate simple interest is:
M = P + (P × r × t) / 100
- M = Maturity Amount
- P= Principal (Total amount of invested money)
- r = The annual interest rate (%)
- t = Time period
Example: You put in ₹50,000 a month for 10 years with the annual interest rate expected to be 12%. After using the simple interest formula the results will be
- M = 60,00,000 + (60,00,000 × 12 × 10) / 100
- M = 60,00,000 + 72,00,000
- Maturity Value = ₹1,32,00,000
2. Compound Interest
This is very common in FDs, and investors must have heard about this, but it’s not very easy for everyone to calculate each and everything on their own that too without making any mistakes. Here are FD calculator will make things easier for you by just applying this formula:
M = P × (1 + r/n) ^ (n × t)
- M = Maturity Amount
- P = Principal Amount
- r = Annual interest rate
- n = Number of times interest is compounded yearly (e.g., 4 for quarterly)
- t = Time Period
Example: Now, let’s take this example with the previous equation as well for better understanding. With a monthly investment of ₹50,000 for 10 years with an interest rate of 12%. The result after compounding will be:
- Total Invested: ₹60,00,000
- Maturity Value: ₹1,12,01,794
- Wealth Gained: ₹52,01,794
How Does Our FD Calculator Work?
Our FD Calculator is a simple and user-friendly tool. Here’s our FD Calculator works:
- Select Your Investment Type: Our FD calculator has two categories so start by choosing the category of investment that satisfies your financial goal: SIP (Systematic Investment Plan) or Lumpsum.
- Set Your Monthly Investment: Drag the slider to see how much you will invest each month. Investors can start with an investment of as little as ₹500 and invest a maximum amount of ₹5,00,000.
- Set Your Expected Return Rate: Now, slide and choose the rate of return that you expect in the future. You can pick a rate of any value, from 1% to 100%, depending on your market view and budget.
- Choose The Time Period: You have to slide the slider and choose how much period of time you want to invest– anywhere from 1 year to 40 years.
- Click on “Calculate”: When you are done with everything, just click the “Calculate” button.
- Get Immediate, Accurate Results: You can check the total amount invested, wealth gained, and total wealth. Also, you can check the investment distribution graph, year-wise growth chart, and summary section.
Advantages of using our FD Calculator
- Save Time and Effort: You do not have to make any manual counting or use formulas. Just simply give details and instantly get the maturity amount.
- Timely and Accurate Results: Our calculator provides you with timely, accurate results according to the information you provide. You can rely on the numbers without verifying or reconsidering.
- Full Responsiveness: The calculator operates independently of the device you are using phone, tablet, or computer. Simple, responsive and available anytime and anywhere.
- Free & No Sign Up Required: No need to pay or register an account. There is no restriction on how you use our tool, it’s available for everyone free of charge.
- No Need To Download An App: No app installation is required. The FD calculator is available as a direct access tool that can easily be opened on any browser.