FD Calculator

FD Calculator: A Detailed Study

FD (Fixed Deposit) calculator is an important financial tool that helps investors calculate the interest earned and total amount on their fixed deposit investments. Fixed deposit is a popular investment option, in which the invested amount is deposited in the bank for a fixed period and interest is earned on it as per the fixed interest rate. In this article, we will discuss all these aspects in detail including the result facts, benefits of FD calculator, and how to calculate FD using it.

What is FD calculator?

Fixed Deposit calculator is an online tool that helps investors get information about the future potential value and interest earned of their fixed deposit investments. This calculator helps investors estimate the growth of their investment amount based on time and interest rate.

FD Calculator Result Facts

The results of the FD calculator clearly present the following facts:

1. Initial Investment Amount: The amount that the investor has invested in a fixed deposit.

2. Duration: The time period for which the investment is made. This period usually lasts months or years.

3. Rate of interest: The annual interest rate that is provided by the bank on fixed deposits.

4. Maturity Amount: The total amount an investor receives at the end of the investment term, which includes both the principal and interest earned.

5. Interest earned: The total interest that is earned over the tenure of the investment.

Benefits of Fixed Deposit Calculator

The Fixed Deposit calculator has the following key benefits:

1. Exact calculation: This calculator calculates the exact interest and maturity amount on the investment, giving the investor accurate information about their investment.

2. Time-Saving: Instead of manual calculations, using FD calculator saves time and provides error-free results.

3. Financial Planning: This calculator helps investors in their financial planning so that they can achieve their future financial goals.

4. Comparison of different options: Using an FD calculator, investors can compare interest rates from different banks and schemes and choose the best option.

5. Convenience and simple to use: The FD calculator is extremely simple to use and can be used online anytime, anywhere.

How to calculate FD with FD calculator?

Follow the following steps to use the Fixed Deposit Interest calculator:

1. Enter initial investment amount: First, enter the amount you want to invest in a fixed deposit.

2. Enter period: Enter the time period for which you want to invest. This period usually lasts months or years.

3. Enter interest rate: Enter the annual interest rate which is provided by the bank.

4. Calculate: After entering the input data, click the ‘Calculate’ button on the calculator. With this, you will get information about the maturity amount of your investment and the interest earned.

Example

Suppose you have made a fixed deposit of Rs 1 lakh, the annual interest rate is 6%, and the investment period is 5 years. The maturity amount and interest earned using the FD calculator will be calculated as follows:

• Initial Investment Amount (P): Rs 1,00,000

• Interest Rate (r): 6% per annum

• Period(t): 5 years

If interest is compounded annually, using the formula:

A=P(1+rn)ntA = P \left(1 + \frac{r}{n}\right)^{nt}A=P(1+nr)nt

Where nnn = number of compounding per year (here it is considered as annual, hence n=1n = 1n=1):

A=100000(1+0.061)1×5A = 100000 \left(1 + \frac{0.06}{1}\right)^{1 \times 5}A=100000(1+10.06)1×5 A=100000(1.06)5A = 100000 \left(1.06\right)^5A=100000(1.06)5 A=100000×1.3382A = 100000 \times 1.3382A=100000×1.3382 A=133820A = 133820A=133820

So, your maturity amount after 5 years will be Rs 1,33,820, of which Rs 33,820 will be earned as interest.