Our FD Calculator helps you accurately determine the maturity amount and interest earned on your fixed deposit investments. Easily plan your savings with this essential financial tool. Understand how interest compounding impacts your returns for better financial decisions.
Formula:
The Maturity Amount (A) for a Fixed Deposit is typically calculated using the compound interest formula, adjusted for compounding frequency:
Maturity Amount (A) = P * (1 + R/N)^(N*T)
Total Interest Earned (I) = A - P
Where:
- P = Principal Investment Amount (Your initial deposit)
- R = Annual Interest Rate (as a decimal, e.g., 7.5% becomes 0.075)
- N = Number of times interest is compounded per year (e.g., 1 for annually, 2 for semi-annually, 4 for quarterly, 12 for monthly)
- T = Investment Tenure (in years)
- A = Maturity Amount (Total amount you receive at the end of the tenure)
- I = Total Interest Earned (Profit from your investment)