Fixed Deposit Calculator

by

Fixed Deposit (FD) Calculator

Calculate your maturity amount and interest earned

Monthly Quarterly (Standard) Half-Yearly Annually
Invested Amount: 0.00
Total Interest Earned: 0.00
Total Maturity Value: 0.00

Understanding Fixed Deposit Calculations

A Fixed Deposit (FD) is one of the most secure financial instruments offered by banks and financial institutions. It allows you to invest a lump sum of money for a predetermined period at a fixed interest rate. Unlike market-linked investments, the returns on a fixed deposit are guaranteed and unaffected by market fluctuations.

How the FD Calculator Works

This calculator uses the compound interest formula to determine the final maturity amount. Most banks use quarterly compounding, but this tool allows you to adjust the frequency to match your specific bank's policy.

The Formula: A = P (1 + r/n)nt
Where:
A = Maturity Amount
P = Principal Amount (Initial Investment)
r = Annual Interest Rate (in decimal form)
n = Number of times interest compounds per year
t = Total tenure in years

Example Calculation

If you invest 10,000 for 2 years at an annual interest rate of 7%, compounded quarterly:

  • Principal (P): 10,000
  • Annual Rate (r): 0.07
  • Compounding (n): 4 (Quarterly)
  • Time (t): 2

After 2 years, your total maturity value would be 11,488.82, and your total interest earned would be 1,488.82.

Factors Affecting Your FD Returns

  1. Principal Amount: The higher the initial deposit, the higher the absolute interest earned.
  2. Interest Rate: Higher rates yield better returns. Senior citizens often receive an additional 0.50% to 0.75% interest.
  3. Tenure: Longer durations allow more time for interest to compound, significantly increasing the maturity value.
  4. Compounding Frequency: The more frequently interest is added to the principal (e.g., monthly vs. annually), the higher the final amount.
function calculateFD() { var principal = document.getElementById('principal').value; var rate = document.getElementById('rate').value; var years = document.getElementById('years').value; var months = document.getElementById('months').value; var frequency = document.getElementById('frequency').value; // Convert to numbers var P = parseFloat(principal); var annualRate = parseFloat(rate); var Y = parseFloat(years) || 0; var M = parseFloat(months) || 0; var n = parseInt(frequency); // Validation if (isNaN(P) || P <= 0) { alert("Please enter a valid Principal Amount."); return; } if (isNaN(annualRate) || annualRate <= 0) { alert("Please enter a valid Interest Rate."); return; } if (Y === 0 && M === 0) { alert("Please enter the Tenure in years or months."); return; } // Convert tenure to total years var t = Y + (M / 12); // Convert annual rate to decimal var r = annualRate / 100; // Compound Interest Formula: A = P * (1 + r/n)^(n*t) var maturityValue = P * Math.pow((1 + (r / n)), (n * t)); var interestEarned = maturityValue – P; // Display results document.getElementById('display-principal').innerHTML = P.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('display-interest').innerHTML = interestEarned.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('display-total').innerHTML = maturityValue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('results-box').style.display = 'block'; }

Leave a Comment