What is a Fixed Deposit (FD) Calculator?
A Fixed Deposit calculator helps you find out how much interest you will earn on your FD and what the maturity amount will be at the end of the tenure. FDs are considered one of the safest investment options as they offer guaranteed returns.
How does it work?
The interest on FD is usually compounded quarterly. The formula for compound interest in FD is:
A = P (1 + r/n)^(n*t)
Where:
- A = Maturity Amount
- P = Principal amount invested
- r = Annual interest rate (in decimals)
- n = Number of times interest is compounded per year (usually 4 for quarterly)
- t = Tenure in years
Related Tools & Learn More
- PPF Calculator – Compare with PPF returns
- SIP Calculator – Calculate equity mutual fund returns
- Compound Interest Calculator – See how your money grows
- Modern Portfolio Construction – Learn about asset allocation