FD Calculator: Calculate Your FD Interest Easily

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Created a fixed deposit but don’t know how to calculate the interest rate? Want to find the yearly, quarterly, or monthly interest using an FD calculator

Well, this is the right place for you to get all your doubts cleared regarding FD and its calculation methods. In today’s article, we will throw some light on an FD calculator, how to use a fixed deposit interest calculator and the standardised formula to calculate the interest rate.

Fixed Deposit and its Types 

A fixed deposit or an FD is a scheme offered by your banks where you invest money to get a higher rate of interest. Your money increases over time at a given interest rate over time. You get the total amount at the end of your maturity period. 

It is a very safe option where interest rates are consistent with no market-related risks. The interest rate is not affected by any sort of market clashes and you get your guaranteed returns at maturity. 

There are four broad kinds of fixed deposits and they are:

  1. Cumulative Fixed Deposit:

In this type of fixed deposit, when you invest your money, your interest gets compounded. You can use an FD calculator to calculate and analyse your CFD. 

  1. Non-cumulative Fixed Deposit:

In this type of fixed deposit, when you invest your money, you get a fixed interest rate and you can withdraw that money on a monthly, quarterly, half-yearly, or yearly basis. This can be called your monthly interest, quarterly interest, half-yearly interest, or yearly interest. 

  1. Standard Fixed Deposit:

This is the basic form of FD where you invest money for a period of 7 to 10 years at a fixed interest rate. 

  1. Corporate Fixed Deposit:

The deposit you carry out with non-banking financial companies or the NBFCs is called a corporate FD. You should check the company’s credit rating and take expert advice to make sure your deposits are secure. 

Benefits of Investing in Fixed Deposits

The fixed deposit has various benefits, read to know them:

  • You get assured returns irrespective of any crisis or market fluctuations. 
  • You get promising interest rates, which is a big advantage. 
  • You get additional tax benefits by creating a fixed deposit. 
  • In terms of security, you will be assured that your money is in a safe place. 
  • It acts as collateral in most cases, if ever you want to opt for a loan. 

What is an FD Interest Calculator? 

An FD interest calculator is a handy, easy-to-use online software that helps you find the interest out of the money you invest. It assists you to calculate the maturity amount you are going to receive if you put your money at a given interest rate for a set period. 

It also helps you decide which bank you should prefer according to different interest rates, how much money you should invest and the tenure. Through FD Calculator Monthly Interest calculation becomes easy.

What are the Advantages of Using an FD Calculator? 

Some of the exclusive advantages of using an FD interest calculator are: 

  • Accurate results:

FD calculator is AI-generated software, so the results it provides are accurate and specific. 

  • Error-free outcomes:

FD calculators, unlike manual calculations, have no chance of making any kind of mistake while computing the final figures. 

  • Saves a lot of time:

Since it is software, it does the calculations in less than a second which saves a lot of your valuable time. 

How to use an FD Calculator?

Here is a step-by-step guide explaining how to use FD Calculator Monthly Interest along with yearly, half-yearly, and quarterly rates.

  1. Select the amount you want to invest in the FD scheme.
  2. Select the tenure (monthly, quarterly, half-yearly, or yearly) according to your preference.
  3. Select the interest rate that you have decided on for your fixed deposit.
  4. Click on the “CALCULATE” option and here you have your results in a second.

You can recalculate the same to make sure that everything is correct and that you haven’t mistakenly put incorrect values. 

How is Fixed Deposit Interest Calculated? 

To calculate fixed deposit interest, two methods are widely used:

  1. Simple Interest

This is not a flexible method to compute your interest rate. The interest rate is always pre-fixed at a fixed period. 

The formula for Simple Interest, SI is:

SI = P×R×T/100

where P is your principal amount, R is your rate of interest, and T is your time period. 

For example, if you invest 5000 rupees at an interest rate of 10 percent for a period of 5 years, then your interest is equal to 2500 rupees and the total amount is 7500 rupees. 

This method is mostly not preferable due to its rigid nature and fewer returns. 

  1. Compound Interest

This is the most widely used method and in fact, the formula used here is also considered the universal FD formula.

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

where A is the maturity amount, P is the principal amount, R is the rate of interest, n is the number of compounding frequencies, and t is the time period. 

For example, if you invest 5,000 rupees at an interest rate of 10 per cent for a period of 10 years, then your total interest would be 7968.71 rupees and your maturity amount would be 12,968.71 rupees. 


An FD interest calculator is a very useful tool to help you understand the interest that you will receive on your monthly investment. Different banks and NBFCs provide variable interest rates. Make sure you talk to the bank officials, your advisors, and the people who have been investing in FD, and then make an informed decision. 

You can also refer to the official website of Piramal Finance to understand about FDs in detail. Go through the various informative articles posted by them and check their products and services.