Fixed Deposit (FD) Calculator
Calculate your Fixed Deposit (FD) maturity amount and interest payouts.
What is the Fixed Deposit (FD) Calculator?
A Fixed Deposit (FD) is a secure financial investment offered by banks and non-banking financial companies (NBFCs) that allows investors to deposit a lump sum amount for a fixed tenure at a predetermined rate of interest. The interest rate remains constant throughout the tenure, making FDs one of the safest investment options.
There are two primary types of Fixed Deposits:
- Reinvestment FD (Cumulative): The interest earned is reinvested into the principal at regular intervals (typically quarterly), leading to compound growth. You receive the principal plus accumulated interest at maturity.
- Interest After Maturity (Non-Cumulative): The interest earned is not reinvested. Instead, at maturity, the initial investment matures and is held for a post-maturity duration during which you can receive regular (e.g. monthly) interest payouts.
Practical Examples & Reference Guide
Here is a practical comparison of how an initial deposit of ₹1,00,000 grows over 5 years at an 7.5% annual interest rate under different compounding frequencies (Reinvestment FD):
| Compounding Frequency | Total Interest Earned | Maturity Amount | Effective Yield (%) |
|---|---|---|---|
| Quarterly Compounding | ₹44,995 | ₹1,44,995 | 8.99% |
| Monthly Compounding | ₹45,329 | ₹1,45,329 | 9.07% |
| **Half-Yearly Compounding | ₹44,504 | ₹1,44,504 | 8.90% |
| Annual Compounding | ₹43,563 | ₹1,43,563 | 8.71% |
As shown, higher compounding frequencies result in higher maturity amounts due to the power of compounding.
In-Depth Technical Guide
The Mathematical Formula for Fixed Deposit Compound Interest
To calculate compound interest for a Reinvestment (Cumulative) FD:
$$A = P \left(1 + \frac{r}{n}\right)^{nt}$$
Where:
- A = Maturity Amount
- P = Principal amount (initial investment)
- r = Annual interest rate (in decimal form, e.g., 0.075 for 7.5%)
- n = Number of compounding periods per year (Monthly = 12, Quarterly = 4, Semi-Annually = 2, Annually = 1)
- t = Total tenure in years (Years + Months/12)
Interest After Maturity Payout Formula
If you opt for a Non-Cumulative FD (Interest After Maturity) to receive regular income after the initial term ends, the monthly interest payout is calculated as:
$$\text{Monthly Interest Payout} = A_{\text{maturity}} \times \frac{r}{12}$$
Where $A_{\text{maturity}}$ is the maturity amount at the end of the initial time period. This simple interest payout is transferred to the investor's bank account monthly while the principal $A_{\text{maturity}}$ remains intact for the post-maturity duration.