Calculating the Fixed Deposit (FD) maturity amount with interest is simple. You can now know how to calculate fixed deposit interest and the amount in two ways. One is a traditional method, i.e., calculating using a formula, and the other uses an FD calculator, which you can easily find online. We’ll further detail both of these methods in the article. This article aims to help you determine an FD’s maturity amount using simple and easy methods.

  What is an FD?

An FD is an investment instrument most banks and non-banking financial institutions offer. An FD offers a guaranteed, predetermined interest rate with flexible tenure. No matter how the market performs, you will always receive the predetermined interest on your investment with an FD. A duration of 7 days to 10 years is available for the investment. You can choose the tenure which suits you best.

  What is a Maturity Amount?

The sum of your deposited capital or principal amount and the interest earnings on that amount constitutes an FD’s maturity amount or value. These amounts depend on the selected tenure and the predetermined FD interest rates. The amount invested, the tenure of the deposit you select, and the payout method are the three variables that determine your maturity amount. The frequency of the payouts is also crucial when it comes to the payout mode.

In the case of cumulative options, you receive interest returns at maturity. If you compare this choice to a non-cumulative payout option, you get more interest as you also earn interest on interest. You can receive interest payments on a non-cumulative deposit at regular periods. Be it monthly, quarterly, half-yearly, or annually. Based on the frequency, the rates and the FD maturity value vary.

  Factors Affecting the Maturity Amount of an FD

Several factors affect the maturity amount.

● Principal Amount: The greater the principal amount, i.e., the money you deposited, the greater the maturity sum you’ll receive.

● Interest Rate: Higher Interest Rates mean more money earned through interest added to your maturity amount, thus increasing the maturity amount.

● Tenure: A tenure for a longer period will generate more interest, thus increasing your maturity amount.

● Compounding Period: Compounding is the process through which interest is periodically added to the principal sum. The more the invested amount is compounded, the more the interest, and thus higher the maturity amount.

  Calculating the Maturity Amount

The total amount you get from an FD after the investment period, including the principal amount you deposited and any interest earned on that, is the maturity amount. Two formulas can help you to determine the maturity amount:

  a) The Simple Interest Formula

M = P + ( P x r x t/100), where

● M is for the Maturity Amount that you’ll receive

● P is the Principal Amount that you deposited

● r is the interest rate upon which your annual interest earned would be calculated

● t is the tenure for the number of years you invested

To understand the formula more simply, here is an example. Let’s assume you deposited a sum of Rs 50,000 for five years at 10% interest. Your maturity amount will be calculated in the following way –

M = 50,000 + ( 50,000 x 10% x 5/100)

    = 75,000

Thus, your maturity amount is Rs. 75,000

  b) Compound Interest Formula

M = P [(1 + i/n)^nt], where,

● M is for the Maturity Amount that you’ll receive

● P is the Principal Amount that you deposited

● i is the rate of interest per period

● t is the tenure for the number of years you invested

Let’s understand this formula with the help of an example. Using the same variable as earlier, we will get Rs 81,931 as the amount on maturity.

  What is the FD Calculator?

An investor can use the FD calculator to estimate the FD maturity amount for a specified tenure. Even before investing, you can calculate the maturity amount you can get after the tenure ends. In this way, you can choose your best investment tenure and plan accordingly. But do understand that the FD calculator merely estimates wealth gained and makes no guarantees about the value estimated based on inputs added.

  Calculating the Maturity Amount of the FD through FD Calculator

Calculating the FD maturity amount through the FD calculator is relatively simple. All you have to do is add the information and get all the required information. The steps below help calculate your FD maturity amount and the interest you have earned. Follow these steps.

Step 1 – Enter the desired investment amount

Step 2 – Choose the tenure

Step 3: Select the interest rates you wish to check for, or they will be calculated automatically, depending upon the calculator.

Step 4: Decide whether to pay out at maturity or predetermined intervals, such as monthly or quarterly. The calculator will automatically calculate the FD interest rates, the interest you can earn, and the maturity amount once you have entered all the information.

Benefits of Using an Online FD Calculator

Using an online FD maturity calculator has a number of benefits. The following are the advantages:

  1. It determines the precise maturity amount you will earn.

  1. The online calculator can be used as often as you want to compare.

  1. Since it’s not a time-consuming task and also you can remain error-free compared to manual calculations, which can take time and chances of error remains high.

  1. Online calculators are free to use.

Without a doubt, using a digital calculator is the easiest way to determine the FDs maturity amount. It saves a lot of time while also remaining error-free.


FD calculators help in calculating the maturity amount even before you invest. It allows you to determine which tenure and amount is best for you so that later you can receive the desired maturity amount and earn the desired interest.

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