A fixed deposit (FD) is a form of term investment plan that pays out a certain amount of money regularly. Banks and non-bank financial institutions (NBFCs) provide it, and the interest rate on FDs is greater than on traditional savings accounts. The interest rate on FDs is fixed and does not fluctuate with market changes, and the maturity time is locked in.

An **FD return calculator** can help you figure out how much interest and how much money you’ll get when your investment matures. It calculates the precise amount of interest your money will earn over a specified period.

## How Does the FD Calculator Work?

An FD return calculator is an internet application that tells you how much money you’ll get when your fixed deposit matures. You must enter the following information into the calculator:

- Investment amount: The amount you will put into a fixed-income investment program.
- Tenure: You will choose a lock-in time for your deposit.
- Interest rate: The bank’s rate of interest on a fixed deposit.

Based on your parameters, the FD return calculator will compute and display the interest and maturity amount. You may also alter the investment, tenure, and interest rate parameters, and the FD return calculator will adjust the results appropriately.

You can choose between two types of FDs: non-cumulative interest and cumulative interest.

- In a non-cumulative FD, you’ll get your interest every year and your principle investment will stay the same at the end of the year.
- The income received on a cumulative FD is added to the principle investment each year and compounded. This allows you to make more money.

The following formula is used by a fixed deposit compound interest calculator for non-cumulative fixed deposits to compute the maturity amount:

Where A = P + (PxRxT/100)

- A represents the entire amount you will get upon maturity.
- The main amount that you have invested is denoted by the letter P.
- The yearly rate of return is denoted by R.

## What is the FD Return Calculator and How Do I Use It?

It’s simple to utilize a fixed deposit interest calculator. Using the FD calculator online, you may determine the returns on your fixed deposit in a few simple steps.

Use the internet to find an online fixed deposit compound interest calculator.

**Enter the amount you intend to put into a fixed deposit program**

- Select the period and rate of interest offered by the specific
**FD**program. - The maturity amount will be displayed immediately by the calculator.
- You may also alter all of the parameters to compare other investing strategies, and the calculator will display the results accordingly.
- For example, if you invest Rs 1,00,000 (P) in a non-cumulative FD scheme with a 6% annual rate of return (R) for 10 years (T), your maturity amount (A) will be Rs 1,60,000. This indicates you’ve amassed a total interest income of Rs 60,000.
- The formula for cumulative fixed deposits is:

A = P + P x (1 + R/100)^T where

- For example, if you invest Rs 1,000,000 in a cumulative FD scheme with a 6% annual interest rate for ten years, your maturity amount will be Rs 1,81,402. This indicates that you earned Rs 81,402 in interest.

You may use the formula above to calculate the maturity value. If you need to know right away, you may utilize the fixed deposit calculator.

A fixed return calculator is an online tool that lets you figure out how much interest and how much money you’ll get at the end of the deposit period.

To use the calculator, simply input the deposit amount and the insurance period. Because the interest rate is set by the financial institution, it would be automatically included in the computation.

The calculator automatically calculates the maturity amount when you enter the information. As a result, the fixed deposit calculator is a useful tool for doing quick and simple calculations.