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Everything you need to know about using an FD Calculator

You may be someone who wants to save up for a rainy day. Alternatively, you could be saving for a vacation or your child’s higher education. You may be also planning for your retirement. Whatever your financial goal, a Fixed Deposit should essentially be part of your saving and investment plan. This is because the returns from an FD are guaranteed.

However, if you are unsure about how much to save and open an FD with, for how long, or if you are unsure about the returns, you can simply use an FD Calculator.

What is it?

Calculating the amount that you receive when your FD matures can be a time-consuming and complicated task. This is when an online FD Calculator can be a boon and enable you to figure out the details without breaking a sweat. Alternatively, if you do not know how much you should save, you can also play around with different amounts and multiple tenures. This lets you know how and when to reach your target amount.

How do you use it?

To use an FD interest calculator, follow these easy steps:

  • Firstly, select the customer you are, i.e., whether you are a senior citizen.
  • Next, enter the principal amount that you want to open your FD with.
  • Choose the FD tenure.
  • The interest rates get automatically selected based on the tenure you choose.
  • Just hit calculate. The calculator displays the interest you will earn along with the amount of your FD at maturity.

How is the interest calculated?

A Fixed Deposit may be of the following two types:

  • A simple interest FD
  • A compound interest FD

To calculate the maturity amount of a simple interest FD, the calculator uses the following formula:

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

Here, P stands for the principal amount, r for the interest rate per annum, and t for the tenure.

While, for a compound interest FD, the maturity value is calculated as:

M= P + P {(1+i/100)t-1}

Here, P refers to the principal amount, i is the rate of interest per annum, and t stands for the tenure.


Since life is unpredictable, opening an FD to tackle emergencies or to fund your future needs is a wise decision. Moreover, today, you need not visit a bank’s branch to invest. You can simply open one through a Banking App on your phone. However, if you are unsure about the principal amount or how much you will receive from your FD at maturity, use an FD Calculator. It comes packed with the following advantages:

  • It lets you play around with different combinations of principal amount and tenure and assess what works best for you.
  • It provides you with the exact amount you will receive at maturity.
  • It is free and can be used an unlimited number of times.

Ana Hoffman
Anna Hoffman is a part-time blogger who blog about Business Technology, Digital Marketing, Real Estate, Digital Currencies, and Educational topics.
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