**FD Calculator**

**FD Calculator**

Calculate the interest you can receive by depositing in a Fixed Deposit.

If you want to put your money away for a longer period of time and even earn some interest on it, then you can get it through a fixed deposit. A fixed deposit is a long-term saving where you lock in your money and earn interest on your investment.

Fixed deposits are generally offered by banks, mutual funds, and non-banking finance companies(NBFCs).

## How To Calculate The Fixed Deposit Interest?

There are 2 methods to calculate the interest on fixed deposit – simple interest and compound interest.

**Simple Interest:**

Simple interest is the amount of interest earned on a principal amount over time. It is calculated by multiplying the rate of interest per annum, the principal amount, and the number of years.

**Formula to calculate simple interest:**

SI = P x R x T/ 100

where,

**SI** = Simple Interest

**P** = Principal amount

**R** = Rate of Interest

**T** = Tenure

**Let’s consider an example:**

If you deposit Rs. 5 lakhs at a 10% interest rate per annum for 6 years, then your interest amount at the time of maturity you will get:

SI = 5,00,000 x 10 x 6/100 = **3,00,000**

Maturity Value = Principal amount + Simple interest

Therefore in our example Maturity Value = 5,00,000 + 3,00,000 = **8,00,000**

**Compound Interest:**

Compound interest is the interest earned on both the principal amount and the interest amount. It is calculated by multiplying the principal amount with the interest rate raised to the number of years, number in periods, for which the interest is compounded.

**Formula to calculate the compound interest:**

A = P (1+r/n) ^ (n * t)

where,

** A = **maturity amount

** P = **Principal amount

** r = **Rate of Interest (in %)

** n = **number of compounding in a year

**t = **number of years

**For example:**

if a sum of Rs 10,000 is invested for 3 years at 10% compound interest rate (quarterly compounding), then at the time of maturity,

**A**= 10,000 {1 + (0.1/4)} ^ (4 * 3)

**A** = 10,000 (1 + 0.025) ^ (12)

**A** = 10,000 (1.025) ^ (12) = Rs. 13,449 (approximately)

**Compound Interest (CI) Earned over 3 years** **=** Maturity Amount – Principal Amount

**CI = **13,449 – 10,000 = Rs. 3,449

**Benefits of Fixed Deposit**

Fixed Deposit is a safe investment option for those who want to keep their money for a long time.+

Fixed deposits allow you to earn interest on your savings over time, which means that you are guaranteed to get your money back at the maturity date.

Fixed deposit offers flexibility as you can withdraw your amount anytime for your emergency purposes.

**Fixed Deposit Calculator**

A fixed deposit calculator will help you to calculate how much interest you will get by investing in a fixed deposit over a certain period of time. With the help of a fixed deposit calculator, investors can quickly determine how much they can expect to earn from a particular investment.

Munim’s FD calculator will give you an accurate result. Using our calculator you can save your time as we give you the result within seconds.