Get a Detailed Understanding About the Workings of a Fixed Deposit Calculator

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Fixed deposits are considered to be one of the best savings options available in the market now as they are not market-linked. However, it is important for individuals looking to save with an FD to know the returns that they can expect beforehand in order to make a wise financial decision. A fixed deposit calculator helps you with this by forecasting the returns.

What is a fixed deposit calculator?

A fixed deposit calculator calculates the interest income and maturity amount that you can earn for various amounts and tenors. All you have to do is enter the deposit amount, tenor, and interest rate and you will get the result instantaneously. 

How does an FD calculator work?

A fixed deposit calculator is an online easy-to-use tool that simplifies the complex and time-consuming process of manually calculating FD maturity amount. Calculating the interest income earned on fixed deposits is a function of the principal amount, interest rate, and the duration. Having said that, the interest varies depending on whether you choose a cumulative fixed deposit or non-cumulative fixed deposit. In the case of non-cumulative, you lose out on compounding power because of periodic payouts.

FD calculators use one of the two formulas to calculate fixed deposit interest, namely simple interest and compound interest.

  • Simple interest

It is the interest earned on the deposit amount at a predetermined interest rate for a specific duration. It is calculated by multiplying interest rate, principal amount, and time period.

SI = P*R*T/100


SI =simple interest,

R= interest rate

P= principal amount

T= time period

  • Compound interest

It is the interest earned on the initial deposit amount as well as on the interest. It is calculated by multiplying the initial deposit amount with the rate of interest raised to the tenor for which the interest will be compounded.

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


A= maturity amount

r= interest rate

t= time period

P= principal amount

n= number of compounding years

How to use a fixed deposit calculator?

To calculate the maturity amount using online fixed deposit calculators, follow these steps:

  • Enter the initial deposit amount in the first field (FD Amount)
  • Enter the rate of interest in the second field (Interest Rate)
  • Enter the duration of the fixed deposit (Tenor)
  • Click on the ‘Calculate’ button to get instant results


  • The fixed deposit maturity amount depends on the deposit amount, tenor and type of fixed deposit chosen, i.e., non-cumulative FD or cumulative FD.
  • You can choose the tenor in months or years.

Why is an FD calculator useful?

Fixed deposit calculators that are available online like the Bajaj Finance FD calculator are very useful and can be used to calculate the returns before you get a fixed deposit. FD calculators can benefit you in the following ways:

  • Accurate calculations: Calculating the maturity amount using formulas might not always give you an accurate result. Using an online fixed deposit calculator will save you from complex mathematical calculations and reduces the risk of error because of miscalculations.
  • Easy to use: Calculating the fixed deposit returns manually can be tedious and time-consuming. With FD calculators, all you need to do is input a few values and you will get the results in seconds.
  • Know the maturity amount: You can use the FD interest rate calculator to find out the maturity amount in advance. This can help you determine if the FD scheme will fulfil your financial goals or not.
  • Comparison of different FDs: Fixed deposit interest rates vary across different banks and NBFCs. With the help of an FD interest rate calculator, you can compare and calculate maturity amounts of different financial institutions by entering their respective interest rates.

How can an FD calculator help with future financial planning?

  • Comparing different fixed deposit schemes can be a cumbersome task if you do not have the right tools for research. FD interest rate calculators make this process easier. You can calculate the maturity amounts and compare it and find out which is the better option within seconds.
  • The main reason why people use FD calculators is to forecast the returns. This is especially helpful in case you want to buy a car or meet a planned expense like arranging a wedding. Since the returns are assured, you can deposit the right principal amount to address your financial goals. 
  • A fixed deposit calculator of a particular financial institution displays the FD interest rate applicable to different FD schemes. Through this, you can keep track of the fixed deposit rate change.

The fixed deposit interest rate calculator is one of the best tools available online to predict your earnings before you embark on your fixed deposit journey. So, make sure to make use of this free tool before you grow your wealth with an FD.

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