# FD Calculator

# FD Calculator

An FD (Fixed Deposit) calculator is a tool that helps you calculate the interest earned and maturity amount on your FD investment. The formula for calculating the interest earned on an FD investment is as follows:

**A = P x (1 + r/n)^(n x t)**

Where:

**A = Maturity amount**

**P = Principal amount**

**r = Rate of interest (in decimal)**

**n = Number of times the interest is compounded in a year**

**t = Number of years**

Using this formula, you can calculate the interest earned and maturity amount on your FD investment. Alternatively, you can use an FD calculator, which automates the calculation for you. Here are the steps to use an FD calculator:

**Enter the principal amount** – This is the amount you wish to invest in the FD.

**Enter the rate of interest** – This is the rate at which the bank will pay you interest on your FD investment. The rate is expressed as an annual percentage.

**Enter the tenure** – This is the duration for which you wish to invest in the FD. The tenure is usually expressed in months or years.

**Choose the compounding frequency** – This is the frequency at which the bank will compound the interest on your FD investment. The compounding frequency can be monthly, quarterly, half-yearly or yearly.

**Click on the “Calculate” button** – The FD calculator will then display the interest earned and the maturity amount on your FD investment.

For example, let’s say you invest Rs. 1,00,000 in an FD for a tenure of 5 years at an interest rate of 6.5% per annum. If the interest is compounded annually, the interest earned and maturity amount on your FD investment would be:

**A = P x (1 + r/n)^(n x t)**

**A = 1,00,000 x (1 + 0.065/1)^(1 x 5)**

**A = 1,00,000 x (1.065)^5**

**A = Rs. 1,34,009.63**

The interest earned on your FD investment would be Rs. 34,009.63. You can use an FD calculator to get a more accurate estimate of the interest earned and maturity amount on your FD investment based on the compounding frequency chosen.

## Fixed Deposit (FD) formula

The formula to calculate the maturity amount of a Fixed Deposit (FD) investment is as follows:

**A = P x (1 + r/n)^(n x t)**

where:

**A = Maturity Amount**

**P = Principal Amount (initial investment)**

**r = Rate of Interest (in decimal)**

**n = Number of times the interest is compounded per year**

**t = Time period (in years)**

This formula assumes that the interest is compounded at regular intervals (typically quarterly, half-yearly, or annually). It also assumes that the interest rate remains constant over the investment period.

**Here’s an example of how to use the formula:**

Suppose you invest Rs. 50,000 in an FD for a period of 3 years at an annual interest rate of 7.5%. The interest is compounded quarterly. Using the formula above, we can calculate the maturity amount as follows:

**n = 4 (since the interest is compounded quarterly)**

**r = 0.075 (since the interest rate is 7.5%)**

**t = 3 (since the investment period is 3 years)**

**A = P x (1 + r/n)^(n x t)**

**A = 50,000 x (1 + 0.075/4)^(4 x 3)**

**A = 50,000 x (1.01875)^12**

**A = Rs. 62,401.64**

Therefore, the maturity amount of your FD investment after 3 years is Rs. 62,401.64.