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
An FD (Fixed Deposit) calculator is an online tool that estimates the maturity amount and interest earned on a fixed deposit. It works out this amount automatically from the values entered. The values include the deposit amount, rate of interest, tenure and compounding frequency.
Calculating Fixed Deposit (FD) interest involves either the Simple Interest method (for quick estimates) or the Compound Interest method (which banks use for exact maturity values).
Monthly interest is generally associated with non-cumulative FDs. The payout amount can be worked out using the formula: (P × R) ÷ (12 × 100).
For ₹1 lakh deposited at a 7% interest rate for 5 years, your maturity amount will be ₹1,41,478 (with ₹41,478 as interest) if the interest is compounded annually. If compounded quarterly, which is standard for most Indian banks, the maturity value will be slightly higher at ₹1,41,964.
FD interest forms part of taxable income. It is taxed under "Income from other sources." TDS may also apply once the applicable threshold is crossed. Senior citizens under the old regime can claim a deduction of up to ₹50,000 on the tax payable, as per Section 80TTB.
Different banks offer different FD rates. Enter the applicable rate and tenure, and the same calculator can be used for comparison.
The main difference between Cumulative and Non-Cumulative Fixed Deposits (FDs) is how interest payouts are handled. In a cumulative FD, it remains with the deposit until maturity. In a non-cumulative FD, the interest amount is paid out periodically during the tenure itself.
Yes, senior citizens typically receive higher interest rates on Fixed Deposits (FDs). Banks and financial institutions generally offer an additional 0.50% to 0.75% per annum over the regular rates, with some specialized schemes providing even higher premiums.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, visit www.kotakneo.com/disclaimer