# FD amount calculator – Calculate maturity amount & interest rate on your fixed deposit Fixed deposits come off as unique investment options for their risk-minimization and return-maximization benefits. These risk-free investment schemes offer relatively high returns as against savings deposits and also come with numerous other benefits.

Having a fixed deposit as an investment also improves financial liquidity as you can withdraw it at any time during emergencies. Here, you only need to pay nominal charges to withdraw the amount before your FD maturity.

When planning to invest in a fixed deposit, you can make use of the FD amount calculator to estimate the amount you will receive on maturity. Have a look at this calculator and how it works to compute the maturity amount as well as the interest earned at the tenor’s end.

## What is an FD amount calculator?

Fixed deposit calculator is an online tool that helps you estimate the potential returns you can get on the amount you invest in a fixed deposit scheme. It takes into consideration the invested funds and the tenor you opt for to calculate your maturity amount.

Based on the rate of interest your chosen financial institution is offering, the FD amount calculator displays the results, which include the maturity amount and the total interest earned.

## Know how a fixed deposit calculator computes the maturity amount

The returns you earn on your fixed deposits are calculated as per the applicable interest rate and the frequency at which your financial institution calculates pay-outs. These calculations may be on a monthly, quarterly, half-yearly or yearly basis.

So, if you have invested in a fixed deposit for 1 year and the NBFC calculates it quarterly, the interest will be compounded four times in a year.

Thus, using the FD amount calculator, you will be able to know the interest added on your FD amount after every quarter. Also, know the maturity amount you will receive at the investment tenor’s end.

The FD calculator uses the following formula to calculate the maturity amount.

A = P (1+r/25)4n

Here, A stands for maturity amount, P for the amount deposited and n is the frequency at which interest is compounded.

So, when your deposit amount (P) is Rs. 1,00,000 and the interest rate is 10% with interest compounded thrice in a year; the maturity amount will be as follows.

A = 1,00,000(1+10/25)4×3

On calculation, the maturity amount you receive comes at Rs. 1,34,489. Here, since the deposit amount is Rs. 1,00,000,  the interest compounded on your amount is calculated as A – P.

The interest, therefore, earned on your fixed deposit maturity is as follows.

Rs. 1,34,489 – Rs. 1,00,000 = Rs. 34,489.

## The importance of using fixed deposit calculator before investing in FD

Before you invest in a fixed deposit with your chosen NBFC, it is advisable that you estimate the maturity amount you will receive at the tenor’s end.

It is because this estimation will help you determine the returns you will get after a specific period. You can hence plan your short-term expenses accordingly, and streamline your financial plan with an FD calculator.

Knowing the maturity amount and interest earned for a given period will also help you decide whether to go for this investment or not. It is because you can compare these returns with those you might get from other investment schemes.

However, if you do not want to take a risk with your investment and still expect to gain assured returns that are considerably high, fixed deposit is the most suitable option. You can choose its tenor as per your preference, like a fixed deposit for 1 year, 2 years or more.

You may opt to earn higher returns with products like Bajaj Finance Fixed Deposits which come with high-interest rates along with other attractive features and benefits. So, choose your financial institution wisely and invest in fixed deposits for higher returns.