FD calculator
Fixed Deposit (FD) calculator is a tool for calculating the returns on your investment. FD calculator gives quick and accurate estimates whether you plan to invest in a normal FD, a tax-saving FD, or a senior citizen FD.
1. To calculate the returns on your FD, you need to provide certain input details
Principal Amount: The initial investment you plan to deposit.
Interest Rate: The rate at which your FD will earn interest.
Tenure: The duration for which you will keep your money invested in the FD.
Compounding Frequency: How often the interest is compounded (e.g., monthly, quarterly, annually). In this FD calculator compounding frequency has taken monthly.
2. The basic calculation formula is used by FD calculator to calcuate the maturity amount and interest earned. To calculate the returns on your investment, the formula considers the principal amount, interest rate, tenure, and compounding frequency.
3. The maturity amount is calculated by compounding the interest over the set duration in the FD calculator. It takes the compounding frequency into account and adjusts the interest estimates accordingly. At the end of the investing period, the maturity amount indicates the total value of your FD.
4. The FD calculator also provides the interest earned on your investment. This amount is the difference between the maturity amount and the principal amount. It represents the total interest accrued over the investment period.
5. FD calculator deliver rapid result, saving time and effort in manual calculation.
6. By changing the input parameters and analysing the outcomes, you may compare the returns on various FDs.
7. FD calculator aid with financial planning by assisting you in setting realistic goals and making sound investment decisions.
8. FD calculators display charts or graphs to show the growth of your money over time.
9. Remember that, while FD calculator can provide useful information about your investment, FD calculator has some limit. FD calculator does not take into account inflation, interest rate changes, or foreign economic situations. It is always advisable to contact with a financial advisor who can provide personalised advice based on your specific circumstances for a comprehensive financial strategy.