Fixed Deposit Calculator: A fixed deposit (FD) is a legitimate method of long-term investment proposed by many commercial banks and other financial companies (NBFCs). Subject to specific contractual terms, these deposits typically pay a higher percentage of interest. The sum of money you put down a deposit in an FD is kept fixed for a predetermined amount of time, which can often vary widely from 7 days to 10 years.
Calculation of the Fixed Deposit Amount
The quick and simple fixed deposit calculator applies the aforementioned mathematical formula for simple interest:
Maturity amount = P + (P * R * N/100), where
- P is the principal amount that
- R is the interest rate applied per annum
- N is the time for which interest is calculated in years
For calculating Fixed deposit maturity amount in terms of compound interest, the following formula is used:
Maturity amount = P + P {(1 + R/100) N – 1},
where
- P is the principal amount
- R is the interest rate applicable per annum
- N is the time for which interest is calculated in years
