Calculate Your FD Returns With The Help Of An Online FD Calculator; Here’s how

In a matter of seconds, you can make decisions that can take you leaps closer to your dreams with the help of an FD calculator.

Calculate Your FD Returns With The Help Of An Online FD Calculator; Here’s how

There persists a lot of confusion around how one can be cent per cent sure of their decision to invest or save with a particular fixed deposit. There is also great uncertainty around what the final numbers at maturity would look like. Hence, the FD calculator acts as a shining ray of light in all the fog of uncertainty.

The FD calculator requires only variables such as the interest rate, the amount you’d like to deposit and the duration for which you’d like to commit a certain amount of money to a fixed deposit. In an instant, it can produce estimated values surrounding your interest amount and maturity amount depending on the type of fixed deposit you choose. In a matter of seconds, you can make decisions that can take you leaps closer to your dreams with the help of an FD calculator.

Features and Benefits of an FD Calculator

As an instrument that calculates the maturity amount and the interest charges levied on your fixed deposit returns, the FD calculator can come with many benefits that can upturn even the slightest of uncertainties you may have to surround your future fixed deposit. You can understand the essentials and the perspective with which you can approach an FD calculator through the benefits given below.

Estimation of Returns

An FD calculator can draw approximate values surrounding your maturity and interest returns. This calculation is made on the basis of an interest rate on FD, a deposit amount, a tenor and the type of fixed deposit you would like to opt for. You can find below a few examples of the same, considering the hypothetical numbers of Rs 1 Lakh as a deposit amount and 7.80% as the rate of interest.

Year of Tenor Interest Earned Maturity Amount
Year 1 Rs 7,800 Rs 1,07,800
Year 2 Rs 8,408.4 Rs 1,16,208.4
Year 3 Rs 9,064.25 Rs 1,25,272.25
Year 4 Rs 9,771.26 Rs 1,35.043.91
Year 5 Rs 10,533.42 Rs 1,45,577.33

*The variables and numbers stated above are bound to change as per alterations in figures made by an organisation or institution.

Analysis of Variables

Saving and investing in an FD is all about planning for the future and hence, the fixed deposit calculator can provide you with estimated values that can help you trace the trajectory of your FD, allowing you the opportunity to compare the interest rates offered by various NBFCs or banks. This not only helps you decide which FD should you invest in or save with, but it also helps you decide the fixed deposit type and category that could be ideal for you and your financial goals.

Management of Investable Assets

With the help of an FD calculator, once you have a clear idea of the approximate returns that are bound to come your way at the maturity of your FD tenor, it could be time for you to either solidify your decision to invest or to rethink your investment decisions. This is primarily to be able to wisely decide just how much would you like to invest, for how long would you want to commit to this fixed deposit and exactly when and why would you be utilising the returns.

Free and Unlimited Use

Many online fixed deposit sites will offer you free and unlimited access to fixed deposit calculators. These calculators are the catalyst to procure the numbers that act as the basis of your most important financial decisions. This calculator being free and unlimited, in all its importance, is one of its biggest perks.

How Does An FD Calculator Work?

Two formulae are utilised to calculate the total maturity amount of fixed deposit savings, depending on whether the FD is cumulative or non-cumulative. Those formulae and solved examples are as follows.

M = P + (P x r x t/100)
M = Maturity Amount
P = Principal Deposit Amount (1,00,000)

r = Interest Rate (10%)
t = Tenor (10 years)
M = 1,00,000 + (1,00,000 x 10 x 10/100)
M = 1,00,000 + (1,00,000)
M = 1,00,000 + 1,00,000
M = Rs 2,00,000

Similarly for M = P + P [(1 + r/100)^(t) - 1]

P = Rs 1,00,000
r = 10%
t = 1 year
M = 1,00,000 + 1,00,000 [(1 + 10/10)^(1) - 1)
M = Rs 1,10,000

However, once you apply various numerical values to these formulae, you will realise that making such calculations manually is very archaic and time-consuming. Hence, for instantaneous estimates of your maturity amount, you can turn to an online FD calculator.

How To Use An FD Calculator?

An FD calculator can make your life simpler as an investor and saver. It can help you bring out crucial inferences pertaining to your fixed deposit. Hence, given below is a tentative guide towards how most of the FD calculators on the internet can be used. Once you find yourself on your chosen cumulative or non-cumulative FD calculator page, you are usually expected to enter a deposit amount which you wish to invest or save in a fixed deposit. Next, you may choose a tenor which decides the duration of your fixed deposit. Entering the interest rate is the next step.

Typically, here is where your maturity amount and interest amount should appear on your screen automatically. Hence, this shows that the FD calculator is one of the most efficient financial tools available for all on the internet.

If you wish to invest in an FD or know someone who would like to save through an FD, it is imperative for you to let them know of an FD calculator and how contributive it is to the most crucial FD-related decisions one can make. A fixed deposit calculator can help you strategize and plan. It can help you analyse your numbers and estimate the values that affect your next fixed deposit, helping you avoid financial loss and achieve your financial aspirations. The FD calculator is a money and life saver.


(Note: The article is written by the Brand Desk)

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