Fixed Deposit Calculator
Fixed Deposit Calculator is an online tool that helps you estimate the returns on a fixed deposit investment based on the deposit amount, interest rate, payout frequency, and tenure. Fixed deposits are a secure investment option offered by banks and financial institutions, where a lump sum amount is deposited for a predetermined period at a fixed interest rate.
The key feature of our Fixed Deposit Calculator is its ability to adjust payout types, including Monthly Payout, Quarterly Payout, and Reinvestment. This flexibility enables you to easily compare how varying compounding frequencies influence the growth of your investment over time.
Manually calculating fixed deposit returns can be complex due to variations in payout frequencies (monthly, quarterly, or reinvestment options). However, the Fixed Deposit Calculator simplifies the process, delivering precise results using standard fixed deposit formulas. By considering factors like the deposit amount, interest rate (p.a.), tenure (in months or years), and payout type, this tool provides the following key outputs:
- Total Deposit Amount
- Interest Amount
- Return on Investment (%)
- Maturity Amount
The Fixed Deposit Calculator offers a detailed table with a month-by-month breakdown of your deposit’s growth. This table helps you visualize how the interest accumulates over time, allowing a better understanding of your fixed deposit returns.
Here’s how the table is structured and what each column represents:
1. Table Columns Explanation: Monthly Payout
| Column | Description |
|---|---|
| Month | Indicates the month of the investment term. For instance, “M-1” represents the first month, “M-2” the second, and so on. |
| Deposit Amount | The one-time principal amount you have invested at the start of the fixed deposit. This remains constant throughout the tenure. |
| Effective Amount | The adjusted balance after deducting the monthly payout. This reflects the amount on which interest is calculated. |
| Interest Amount | The interest accrued for that month, based on the Effective Amount and the applicable interest rate. |
| Monthly Payout | The payout amount received each month. The cumulative payouts (in parentheses) show how much has been withdrawn to date. |
2. Table Columns Explanation: Quarterly Payout
| Column | Description |
|---|---|
| Month | Indicates the month of the investment term. For instance, “M-1” represents the first month, “M-2” the second, and so on. |
| Deposit Amount | The one-time principal amount you have invested at the start of the fixed deposit. This remains constant throughout the tenure. |
| Interest Amount | The interest accrued up to that month. The cumulative total (in parentheses) reflects the total earned so far. |
| Quarterly Payout | The interest paid out at the end of each quarter. This value is zero for non-payout months. |
| Maturity Amount | The total balance of your deposit at the end of the investment term. |
3. Table Columns Explanation: Reinvestment
| Column | Description |
|---|---|
| Month | Indicates the month of the investment term. For instance, “M-1” represents the first month, “M-2” the second, and so on. |
| Deposit Amount | The one-time principal amount you have invested at the start of the fixed deposit. This remains constant throughout the tenure. |
| Effective Amount | The balance on which interest is calculated. For reinvestment types, this includes the initial deposit plus reinvested interest quarterly, increasing over time as interest is compounded. |
| Interest Amount | The interest accrued for that month. The cumulative total (in parentheses) reflects the total earned so far. |
| Maturity Amount | The projected value of the deposit at the end of the term, including the reinvested interest. |
What is a Fixed Deposit?
A Fixed Deposit (FD) is a type of investment in which an individual deposits a lump sum amount with a bank for a specific period. The deposited amount earns interest at a fixed rate, determined at the time of account opening. Investors have the flexibility to select how they receive the interest, such as Monthly Payouts, Quarterly Payouts, or Reinvestment of the earned interest.
Why Fixed Deposits Are Popular:
- Safety: Fixed Deposits are among the safest investment options, with no risk of capital loss.
- Guaranteed Returns: The interest rate is fixed, providing stable and predictable earnings.
- Higher Interest Rates: FDs typically offer better interest rates than regular savings accounts.
Key Features:
- Interest Options: Flexibility to receive interest regularly or reinvest it for higher returns.
- No Market Risk: Returns are not affected by market fluctuations.
- Attractive for Investors: FDs suit individuals seeking low-risk, stable investment options with assured growth.
Manual Method to Calculate Fixed Deposit Returns
Before calculating fixed deposit returns, keep these two key points in mind:
- Fixed deposit returns vary depending on the chosen payout type—Monthly Payout, Quarterly Payout, or Reinvestment.
- Regardless of the payout type, the interest is typically calculated on a quarterly compounding basis.
1. When Type of Deposit: Monthly Payout
In this type of deposit, the interest earned is calculated quarterly but paid out monthly as a fixed amount. At the end of the deposit tenure, you receive the original deposit amount (principal) as the maturity amount. The total interest earned during the tenure is distributed as monthly payouts, providing a steady income stream.
Formula for Calculating Monthly Payout
The formula for calculating the interest earned is:
Interest Earned = (Investment × Annual Rate / 1200) × Periods / (1 + Annual Rate / 1200)
- Investment: The initial deposit amount.
- Annual Rate: The annual fixed deposit interest rate (in percentage).
- Periods: The number of months in the tenure.
To calculate the Monthly Payout, divide the total interest earned by the number of periods:
Monthly Payout = Interest Earned / Periods
Example: Tenure = 60 Months
- Deposit Amount: ₹5,00,000
- Type of Deposit: Monthly Payout
- Interest Rate (p.a.): 8%
- Tenure: 60 months
Step 1: Calculate the total interest earned.
Interest Earned = (5,00,000 × 8 / 1200) × 60 / (1 + 8 / 1200)
After solving: Interest Earned = ₹1,98,675
Step 2: Calculate the monthly payout.
Monthly Payout = Interest Earned / Periods
Monthly Payout = 1,98,675 / 60 = ₹3,311
Step 3: Determine the maturity amount.
Since the principal is not used for payouts, the Maturity Amount = ₹5,00,000.
Summary of Results
- Deposit Amount: ₹5,00,000
- Interest Amount: ₹1,98,675
- Monthly Payout: ₹3,311
- Maturity Amount: ₹5,00,000
Example 2: Tenure = 65 Months
- Deposit Amount: ₹5,00,000
- Type of Deposit: Monthly Payout
- Interest Rate (p.a.): 8%
- Tenure: 65 months
Step 1: Calculate the total interest earned.
Interest Earned = (5,00,000 × 8 / 1200) × 65 / (1 + 8 / 1200)
Interest Earned = ₹2,15,231.79 ≈ 2,15,232
Step 2: Calculate the monthly payout.
Monthly Payout = Interest Earned / Periods
Monthly Payout = ₹2,15,232 / 65 = ₹3,311
Step 3: Determine the maturity amount.
Since the principal is not used for payouts, the Maturity Amount = ₹5,00,000.
Summary of Results for 65 Months
- Deposit Amount: ₹5,00,000
- Interest Amount: ₹2,15,232
- Monthly Payout: ₹3,311
- Maturity Amount: ₹5,00,000
This calculation demonstrates how a Monthly Payout fixed deposit provides a steady income while preserving your initial deposit.
2. When Type of Deposit: Quarterly Payout
In this type of deposit, the interest earned is calculated and paid out at the end of each quarter. The principal remains untouched throughout the tenure and is returned as the maturity amount at the end of the deposit term. Quarterly payouts provide periodic income every three months.
Formula for Calculating Quarterly Payout
The formula for calculating the interest earned per quarter is:
Interest Earned Per Quarter = Investment × Annual Rate / 400
- Investment: The initial deposit amount.
- Annual Rate: The annual fixed deposit interest rate (in percentage).
- 400: Represents the quarterly calculation factor (100 × 4).
To calculate the Total Interest Earned, multiply the interest earned per quarter by the number of quarters.
Interest Earned = Interest Earned Per Quarter × Number of Quarters
Example: Tenure = 65 Months
- Deposit Amount: ₹5,00,000
- Type of Deposit: Quarterly Payout
- Interest Rate (p.a.): 8%
- Tenure: 60 months
Step 1: Calculate the interest earned per quarter.
Interest Earned Per Quarter = 5,00,000 × 8 / 400
After solving: Interest Earned Per Quarter = ₹10,000
Step 2: Calculate the total interest earned.
Number of Quarters = Tenure (Months) / 3 = 60 / 3 = 20
Total Interest Earned = Interest Earned Per Quarter × Number of Quarters
Total Interest Earned = 10,000 × 20 = ₹2,00,000
Step 3: Determine the maturity amount.
Since the principal is not used for payouts, the Maturity Amount = ₹5,00,000.
Summary of Results
- Deposit Amount: ₹5,00,000
- Interest Amount: ₹2,00,000
- Quarterly Payout: ₹10,000
- Maturity Amount: ₹5,00,000
Example 2: Tenure = 65 Months
- Deposit Amount: ₹5,00,000
- Type of Deposit: Quarterly Payout
- Interest Rate (p.a.): 8%
- Tenure: 65 months
Step 1: Calculate the interest earned per quarter.
Interest Earned Per Quarter = 5,00,000 × 8 / 400
Interest Earned Per Quarter = ₹10,000
Step 2: Calculate the total interest earned.
Number of Quarters = 65 / 3 = 21 full quarters and 2 remaining months
Total Interest Earned = (10,000 × 21) + (5,00,000 × 8 / 1200 × 2)
Total Interest Earned = ₹2,10,000 + ₹6,667 = ₹2,16,667
Step 3: Determine the maturity amount.
Since the principal is not used for payouts, the Maturity Amount = ₹5,00,000.
Summary of Results for 65 Months
- Deposit Amount: ₹5,00,000
- Interest Amount: ₹2,16,667
- Quarterly Payout: ₹10,000 for each of the 21 full quarters; the remaining ₹6,667 is paid separately.
- Maturity Amount: ₹5,00,000
This calculation demonstrates how a Quarterly Payout fixed deposit provides regular income every three months while keeping your initial deposit intact.
3. When Type of Deposit: Reinvestment
In this type of deposit, the interest earned is reinvested back into the deposit amount at the end of each quarter. This results in a compounding effect, as the interest is added to the principal, and future interest calculations are based on this increased amount. At the end of the tenure, you receive both the principal and the compounded interest as the maturity amount.
Formula for Calculating Maturity Amount
The formula for calculating the maturity amount is:
Maturity Amount = Investment × (1 + Annual Rate / 400)(Tenure × 4 / 12)
- Investment: The initial deposit amount.
- Annual Rate: The annual fixed deposit interest rate (in percentage).
- Tenure: The duration of the deposit (in months).
- Compounding Frequency: Quarterly (Interest is compounded every 3 months).
Example 1: Tenure = 60 Months
- Deposit Amount: ₹5,00,000
- Type of Deposit: Reinvestment
- Interest Rate (p.a.): 7%
- Tenure: 60 months
Step 1: Calculate the maturity amount.
Maturity Amount = 5,00,000 × (1 + 7 / 400)(60 × 4 / 12)
Maturity Amount = 5,00,000 × (1.0175)(20)
Maturity Amount = ₹7,07,389
Step 2: Calculate the total interest earned.
Interest Earned = Maturity Amount – Deposit Amount
Interest Earned = ₹7,07,389 – ₹5,00,000 = ₹2,07,389
Step 3: Calculate the Return on Investment (%).
Return on Investment (%) = (2,07,389 / 5,00,000) × 100.
Return on Investment (%) = 41.4%
Summary of Results for 60 Months
- Deposit Amount: ₹5,00,000
- Interest Amount: ₹2,07,389
- Maturity Amount: ₹7,07,389
- Return on Investment (%) = 41.4%
Note: This formula is applicable only when the number of months is divisible by 3 without a remainder.
Example 2: Tenure = 62 Months (when the number of months is not divisible by 3 without a remainder)
In this case, we first calculate the maturity amount using the formula for 60 months, and then calculate the interest for the remaining 2 months separately.
- Deposit Amount: ₹5,00,000
- Type of Deposit: Reinvestment
- Interest Rate (p.a.): 7%
- Tenure: 62 months
Step 1: Calculate the maturity amount for 60 months (as it is divisible by 3).
Maturity Amount (for 60 months) = ₹5,00,000 × (1 + 7 / 400)^(60 × 4 / 12)
Maturity Amount (for 60 months) = ₹5,00,000 × (1.0175)^20
Maturity Amount (for 60 months) = ₹7,07,389
Step 2: Calculate the interest for the remaining 2 months (since the total tenure is 62 months).
First, calculate the monthly interest rate:
Monthly Interest Rate = 7% / 12 = 0.5833%
Now, apply this monthly rate to the maturity amount for 60 months:
Interest for 2 months = ₹7,07,389 × 7 / (12 × 100) × 2
Interest for 2 months = ₹7,07,389 × 0.005833 × 2
Interest for 2 months = ₹8,252.8
Step 3: Calculate the final maturity amount for 62 months.
Maturity Amount (for 62 months) = Maturity Amount (for 60 months) + Interest for remaining 2 months
Maturity Amount (for 62 months) = ₹7,07,389 + ₹8,252.8
Maturity Amount (for 62 months) ≈ ₹7,15,642
Step 4: Calculate the total interest earned.
Interest Earned = Maturity Amount – Deposit Amount
Interest Earned = ₹7,15,642 – ₹5,00,000
Interest Earned = ₹2,15,642
Step 5: Calculate the Return on Investment (ROI).
Return on Investment (%) = (Interest Earned / Deposit Amount) × 100
Return on Investment (%) = (₹2,15,642 / ₹5,00,000) × 100
Return on Investment (%) = 43.1%
Summary of Results for 62 Months
- Deposit Amount: ₹5,00,000
- Interest Amount: ₹2,15,642
- Maturity Amount: ₹7,15,642
- Return on Investment (%): 43.1%
This example demonstrates how the interest for the remaining months is calculated separately when the tenure is not divisible by 3 without a remainder, leading to a slightly higher maturity amount.
How to Use the Fixed Deposit Calculator
Follow the steps below to use the calculator effectively:
1. Input the Required Information
Provide the following key details to calculate the returns on your fixed deposit:
- Deposit Amount (₹): Enter the principal amount you plan to invest.
- Type of Deposit: Select the payout type (Monthly, Quarterly, or Reinvestment).
- Interest Rate (p.a. %): Enter the annual interest rate as a percentage.
- Tenure (Months): Select the number of months you wish to invest.
Note: You can enter values in three ways:
- Using the keyboard: Manually input the value into the text box.
- Using the scroll bar: Adjust the value by dragging the scroll bar located below the input box.
- Up/Down Buttons: Located in the right corner of the input box, you can click the up button to increase the value or the down button to decrease it.
2. Calculation Process & Results
Once the required details are entered, the calculator will compute and display the following results based on the Type of Deposit selected:
- Deposit Amount: The total amount you have deposited initially.
- Interest Amount: The total interest earned on your deposit over the selected period, calculated based on the deposit amount, interest rate, and tenure.
- When Type of Deposit: Monthly Payout
- Monthly Payout: The amount you will receive every month as an interest payout.
- Maturity Amount: The total value at the end of the tenure.
- Note: The maturity amount will equal the deposit amount because the interest is paid out monthly and not reinvested.
- When Type of Deposit: Quarterly Payout
- Monthly Payout: The amount you will receive every month as an interest payout.
- Maturity Amount: The total value at the end of the tenure.
- Note: The maturity amount will equal the deposit amount because the interest is paid out monthly and not reinvested.
- When Type of Deposit: Reinvestment (Cumulative)
- Return on Investment (ROI %): The percentage increase in your deposit based on the earned interest.
- Maturity Amount: The total value at the end of the tenure.
- Note: The maturity amount is the sum of the deposit amount (principal) and the interest amount since the interest is reinvested and compounded over the tenure.
3. Advanced Table
The Fixed Deposit (FD) Calculator provides an Advanced Table to help you track the growth of your deposits over time. This table presents a detailed month-by-month breakdown, allowing you to monitor your investment’s progress at each step of the tenure. We have already explained the columns of the table in detail above.
Additional Features of the Fixed Deposit Calculator
The Fixed Deposit Calculator comes with several user-friendly features designed to improve your experience and provide a detailed breakdown of its functionalities. Below are the key features:
Feature 1: Numbers Format Checkbox
A checkbox labeled ‘Numbers Format’ appears when you click the minus symbol (⛔) in the top-right corner of the calculator.
When checked: All numbers in the calculator will be displayed in the Indian number format (e.g., ₹1,00,000).
When unchecked: Numbers will be displayed in the International number format (e.g., ₹100,000).
Feature 2: Advanced Table Checkbox
A checkbox labeled ‘Advanced Table’ appears when you click the minus symbol (⛔) in the top-right corner of the calculator.
- When checked: The advanced table will be displayed below the result section.
- When unchecked: The advanced table will be hidden.
Feature 3: Numbers in Words
1. Hover to View Numbers in Words: When you hover your mouse over any result section (such as Deposit Amount, Interest Amount, Return on Investment(%), and Maturity Amount), the number will also be displayed in words.
- Indian Format: If the ‘Numbers Format’ checkbox is checked, numbers will appear in words following the Indian system (e.g., ₹10,00,000 will be shown as “10 Lakh”).
- International Format: If the ‘Numbers Format’ checkbox is unchecked, numbers will follow the International system (e.g., ₹1,000,000 will be displayed as “1 Million”).
2. Real-Time Conversion
- As you enter values or adjust the amount using the scrollbar in the ‘Deposit Amount’ fields, the corresponding number will automatically displayed in words. (similar to the hover functionality.)
- As you enter values or adjust the amount using the scrollbar in the ‘Tenure (Months)’ fields, the corresponding months will automatically displayed in years. (57 months = 4 years 9 months)
Note: Numbers in Words will appear in the center of the page as a tooltip and remain visible for 15 seconds only.
This feature makes the results more readable and helps you understand the figures better by seeing them in both numeric and word formats.
Why Use the Fixed Deposit Calculator?
The Fixed Deposit Calculator is a valuable tool for anyone looking to:
- Time-Saving: Rather than manually performing complex calculations, the tool quickly provides accurate results, saving time and reducing the risk of errors.
- Real-Time Conversion Feature: The tool offers convenient features like viewing numbers in words while entering values or adjusting the amount using the scrollbar. It supports both Indian and International formats (e.g., “10 Lakh” or “1 Million”), making data entry more user-friendly.
- Additional Features: The tool enhances readability and accessibility with features like hovering over results to view numbers in words and choosing between Indian or International formats.
- Visualization: Our calculator provides a circular view that shows the relationship between the Deposit Amount and Interest Amount, offering a quick visual representation of your data.
- Advanced Table: Fixed Deposit Calculator provides an Advanced Table to show how your deposits grow over time. This information is presented in a month-by-month breakdown, helping you track the progress of your investment with ease.
Advantages of Fixed Deposit Calculator over Manual Calculations
Calculating FD manually can be a tedious and error-prone process. Here’s why a Fixed Deposit Calculator is better:
- Error-Free: FD calculators eliminate the chances of mistakes that often occur with manual calculations.
- Quick Results: Instead of spending time calculating complex formulas, you can get instant results with a FD calculator.
- User-Friendly: The simple interface of FD calculators makes them accessible to everyone, regardless of their financial knowledge.
Conclusion: Our Fixed Deposit Calculator will simplify your calculations and ensure accuracy.
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