Fixed Deposit Calculator
About Fixed Deposit Calculator
The Fixed Deposit Calculator is used to calculate the fixed deposit interest and maturity amount.
What is Fixed Deposit
A fixed deposit (usually abbreviated as FD), offered by both banks and companies, is a fixed sum of money that is held in a savings account for a set period of time, thereby earning you a fixed rate of interest in return. Interest can be paid monthly, quarterly, half-yearly or yearly. It is a great way to earn more interest on your savings than a regular savings account.
Calculating Fixed Deposit
The following is the formula for calculating fixed deposit with no compounding:
A = P(1 + rt)
Where:
A = final amount
P = deposit amount (initial investment)
r = annual nominal interest rate
t = number of years
The following is the formula for calculating fixed deposit with periodic compounding:
A = P × (1 + r/n)nt
Where:
A = final amount
P = deposit amount (initial investment)
r = annual nominal interest rate
t = number of years
n = number of compounding periods per year (for example, 12 for monthly compounding)
The following is the formula for calculating fixed deposit with continuous compounding:
A = P × ert
Where:
A = final amount
P = deposit amount (initial investment)
r = annual nominal interest rate
t = number of years
