FD Calculator
Do you know how much your Fixed Deposit (FD) could be worth a few years later? Use this FD calculator to estimate the maturity amount and interest earned in your investment. Enter the deposit amount, tenure, and interest rate on the FD interest calculator to get started.
Total Investment Amount
FD Period
Rate of Interest (p.a)
Investment
Estimated Returns
Investment amount
₹ 1,00,000
Estimated returns
₹ 38,042
Maturity value
₹ 1,38,042
What Is an FD Calculator?
A fixed deposit is where a certain amount of money is invested for a fixed period. The deposit earns interest at a predetermined rate.
An FD calculator shows the maturity amount of the deposit. It also shows the interest portion separately for reference.
The calculator works with a few basic inputs. This includes the deposit amount, interest rate, tenure and compounding frequency. A change in any of these alters the maturity amount.
People often use it while comparing FD options. It is also used to check possible outcomes before opening a fixed deposit.
How To Use The Kotak Neo FD Calculator
It takes a few simple steps to use the Kotak Neo FD calculator.
- Step 1: Enter the deposit amount in the relevant field
- Step 2: Select the interest rate applicable to the fixed deposit
- Step 3: Choose the tenure
- Step 4: Select the compounding frequency
The output shows the maturity amount along with the interest component of the deposit.
FD Calculation Formula (Simple Interest & Compound Interest)
The fixed deposit calculation formula is not the same for every deposit. The difference lies in what happens to the interest earned.
Some FD interest calculators are built with the simple interest formula. Others use compound interest.
Simple Interest FD Formula
The deposit amount used for calculation remains unchanged from start to finish. Interest earned is not added back in this case.
M = P + (P × r × t / 100)
Here,
P = Principal amount
r = Annual interest rate
t = Tenure in years
M = Maturity amount
Suppose ₹1,00,000 is deposited for 3 years at 7% interest
M= 1,00,000 + (1,00,000 * 7 * 3 /100)
M = ₹1,21,000
Compound Interest FD Formula
The amount used for one calculation may not be the same as the amount used for the next. Interest earned is reinvested back into the FD. This increases the deposit amount, hence increasing the interest, too.
M = P (1 + r/n)^(n×t)
Where,
P = Principal amount
r = Annual interest rate
n = Compounding frequency
t = Tenure in years
M = Maturity amount
Suppose ₹1,00,000 at 7% for 3 years with quarterly compounding
M = 1,00,000 × (1 + 0.07/4)^(4 × 3)
M = ₹1,23,144
FD Calculation Example
The example below uses a deposit amount of ₹1,00,000. It has an interest rate of 7% with quarterly compounding. The maturity amount changes when the tenure changes.
₹1,00,000 | 7% | 1 year | Quarterly | ₹1,07,185 | ₹7,185 |
₹1,00,000 | 7% | 3 years | Quarterly | ₹1,23,144 | ₹23,144 |
₹1,00,000 | 7% | 5 years | Quarterly | ₹1,41,452 | ₹41,452 |
The deposit amount and interest rate remain unchanged in all three cases. The maturity amount still changes because the tenure is different. Also, interest is compounded, increasing the original deposit.
How To Calculate FD Monthly Interest
Monthly interest payouts are generally associated with non-cumulative fixed deposits. In such deposits, the interest is paid out at regular intervals. They do not remain with the deposit until maturity.
So, if you are wondering how to calculate FD interest for monthly payouts, use the simple interest formula. A fixed deposit calculator follows the same approach.
Monthly Payout = (P × R) / (12 × 100)
Where,
P = Principal amount (the amount deposited in the FD)
R = Annual interest rate (in percentage)
Cumulative fixed deposits work differently. The interest is not paid out periodically. It remains with the deposit and forms part of future calculations. You can, however, calculate your monthly interest. In this case, the FD calculator for monthly interest uses compound interest.
Many FD calculators online use quarterly compounding while calculating maturity values. This is because most banks credit and compound interest once every three months.
Benefits Of Using an FD Calculator
An FD calculator performs the calculation based on the values entered. It offers certain benefits to investors, like:
- You can check the maturity amount without manual calculations
- It helps you view the interest portion separately from the final amount
- You can compare different interest rates and tenures
- It allows you to run multiple calculations without any usage limit
- You can review different deposit scenarios before investing
Types Of Fixed Deposits in India
Fixed deposits are available in different variants.
- Cumulative FD: Keeps interest within the deposit until maturity and compounds it
- Non-Cumulative FD: The interest received is paid during the tenure
- Tax-Saving FD: A 5-year lock-in period applies to this, post which a tax-saving benefit is available under Section 80C
- Senior Citizen FD: Created specifically with higher interest rates for senior citizens
- Flexi FD: Offers the liquidity and flexibility of a savings account
FAQs on FD Calculator
Yes, most FD calculators, including Kotak Neo’, are completely free and accessible online. You can use them as many times as needed without any subscription or fees.
You can use the formula M = P (1 + r/n)^(n*t) to manually calculate the interest, but an online FD calculator simplifies this entire process for you. It does the math automatically based on the inputs you provide.
It typically takes less than a minute to input your principal amount, interest rate, tenure, and compounding frequency. The calculator provides instant results, so you get your answers very quickly.
It provides a clear picture of the total returns and interest earnings from your FD investment. Seeing the maturity amount helps you set realistic financial goals and savings targets for the future. It also allows you to consider other avenues like mutual funds, stocks etc should the maturity amount fall short of meeting your goals.
It uses the principal amount you want to invest, the offered interest rate, the length of time or tenure, and the compounding frequency to calculate the maturity amount. It also shows the total interest you will earn over the full tenure of the FD.
