Calculate FD Maturity Amount
Calculate FD (Fixed Deosit) Maturity Amount, Total Interest, FD With Tax
What is FD (Fixed Deposits) Calculator?
FD calculator is an online mechanism to calculate your estimated earnings on a fixed deposit. The interest rate of FD is predetermined by those who are offering it (banks, NBFC’s etc) and it is not dependent on ups and downs of financial markets.
An FD calculator is basically shows how much you can earn by depositing a certain amount for a certain period calculated through a fixed inertest rate. So whenever you have something to deposit on FD, you can easily calculate your earning all by yourself with just a click!
Why use FD Calculator
Calculating FD all by yourself is a tiresome process and required a lot of time to complete. An online FD calculator can able to reduce all these pressure from its users and deliver the result within a few seconds. On the other hand you can be able to understand how much your investment will grow even before actual investment. Online FD calculator is also helps you to differentiate various FD offers by various banks and NBFC to match your desired financial goal.
Advantages of using FD calculator
- 1. Quick and reliable.
- 2. Deliver result within seconds.
- 3. Free and simple to use.
- 4. Human error is excludes.
The Formula to Determine FD Maturity Amount
The FD calculation on simple interest is an easy formula to understand. It’s just P x T x R/100. Where p = principal, T= time duration and R stands for rate of interest offered by respective financial institutions.Let us explain,
You have Rs.100/- to invest into FD , now that’s your principal, let’s assume you are planning for tenure of 5 yr term, that’s your time duration and R simplifies the rate that bank are offering on your principal amount , let’s say it is 5%.
So now, P X T x R/100 = 100rs x 5 x 5/100 =25rs will be earned through your investment and after completing 5 yrs tenure bank will provide you, principal+ total interest earn= 100+25= 125rs.
Now take a look into the compound interest formula on FD, P (1+R/100)^T.
so if you take the same variable to calculate, 100 (1+5/100) ^5
= 100 (106/100)^5
= 100(53/50)^5
=133.822 ….
Hope you understand how it works using the formula.
