Fixed Deposit Calculator – A Tool of Financial Planning






A fixed deposit is a form of term investment option that allows individuals to deposit a sum of money into their account for a given period of time. The deposit accrued interest at a pre-determined rate and helps the FD holder to generate wealth through the course of the tenure. However, the interest rate tends to accrue different amounts on returns deposits as the same is closely related to the deposit amount and tenure. 

To understand which fixed deposit scheme would be most suited for your financial goals and requirements you can use a financial tool like a fixed deposit calculator and find out the estimated returns. The fact the FD calculator can be accessed and used easily makes it a useful financial planning tool in more than one way. 

Read along to find out more about the FD calculator and how the same helps in planning finances.

What is FD Calculator?

A fixed deposit calculator is essentially an online tool that is designed to help users ascertain the estimated interest on their deposited amount. Typically, such a financial tool is pre-loaded with interest calculation formulas and offers results within a few seconds. Using the FD calculator individuals can quickly determine the maturity amount accompanying each fixed deposit scheme. With the gathered information the user can easily pick a scheme that seems most lucrative and suits their financial goals. 

The Formula to Find Fixed Deposit Maturity Amount

Typically, there are two formulas for computing fixed deposit maturity amounts for schemes with simple interest and compound interest, respectively. That said, let us take a look at the formulas below –

A smart fixed deposit calculator uses the formula mentioned below to find the maturity of a fixed deposit with a simple interest rate –

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

In this formula

P denotes the principal amount or the deposit amount

r denotes the yearly rate of interest 

t denotes the tenure (expressed in years)

Example of FD Maturity Calculation

Rajat deposits a sum of Rs. 1,00,000 for a tenure of 5 years at 10%. As per the FD maturity formula,

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

M= Rs. 1,00,000 + (1,00,000 x 10 x 5/100)

= Rs. 1,50,000

At the end of 5 years, Rajat would receive Rs. 1,50,000 from the fixed deposit scheme.

On the other hand, a fixed deposit with compound interest rates uses this formula to compute the maturity amount.

M= P + P {(1 + i/100) t – 1}


P denotes the principal amount or the deposit amount

i denotes the rate of interest in a given period

t is the tenure

Example of FD Interest Calculation

Suppose Karan decides to deposit Rs. 1,00,000 at a compounded interest of 10% for a 5-year tenure. As per the formula, 

M= P + P {(1 + i/100) t – 1}

M= Rs. 1,00,000 {(1 + 10/100) 5-1}

Rs. 1,61,051

Hence, Karan would receive Rs. 1,61,051 at the end of the 5-year maturity period.

Steps to Use Fixed Deposit Calculator Online

Fixed deposit calculators are easily accessible online as several leading financial institutions provide the same for free on their websites. Additionally, such an online financial tool can be used for free to check and compare fixed deposit interest and maturity amount. This helps make an informed choice regarding the most lucrative savings and income plans and invest in them accordingly.

Follow these steps to use a fixed deposit calculator online –

Step 1: Visit a trusted financial institution’s website 

Step 2: Navigate to the fixed deposit calculator page

Step 3: Choose a fixed deposit interest type

Step 4: Enter the deposit amount, interest rate, and tenure

Once these details are fed into the FD calculator the financial tool will show the estimated maturity amount and interest amount. However, one should note that not all fixed deposit calculators are equipped with factoring in the inflation rate in the computation. Hence, it is advised to weigh in the same to understand whether investing money in a particular FD scheme will help generate returns that will help you beat inflation or not. 

Benefits of Using a Fixed Deposit Calculator

These are some of the most popular benefits of using a fixed deposit calculator:

  • Offers an accurate insight into the estimated returns one could receive at the end of the maturity period. This helps plan financial goals accordingly.
  • The online FD calculators are available for free and can allow users to make multiple adjustments. This facilitates better comparison among different FD schemes as the user can readjust the deposit, tenure, and interest rate to arrive at an ideal combination.
  • The FD calculator offers instant results which helps users save time and simplifies the process too.
  • There’s no need for manual calculation with an FD calculator as the tool comes equipped with the formulas which offers results automatically. 

Take a look at the section below to understand how to plan your budget with the help of a fixed deposit calculator.

Guide to Use FD Calculator to Plan Budget

Here’s how to use a fixed deposit calculator to plan your budget:

Step 1: Enter the deposit amount you want to park in an FD account

Step2: Fill in the tenure or period you plan to park away your money for

Step 3: Select the FD scheme type you want to invest in

Step 4: Select the compounding frequency, i.e., whether the interest will be compounded monthly, yearly, quarterly, or half-yearly

Step 5: Select the TDS button

After these details are fed into the calculator, the maturity amount and estimated interest amount will appear on the screen. The final amount will help calculate the tax liability and help you plan your tax saving measures accordingly. 

This is how a fixed deposit calculator can help plan personal finance better. However, to make the most of the savings plan it is recommended to opt for a scheme that suits your goals the most.



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