The basic variables
Principal is the amount deposited. The interest rate is the stated annual rate. Tenure is the time for which the deposit is held. Compounding frequency determines how often interest is added to the balance for the calculation.
Compound interest concept
When interest is added to the principal and subsequently earns interest itself, the balance grows through compounding. A commonly used compound-interest expression is A = P(1 + r/n)^(nt), although actual deposit products can use specific conventions.
Example
Suppose ₹1,00,000 is placed in a deposit at an assumed annual rate of 7% for 5 years with a specified compounding convention. The calculator can estimate the maturity value based on the inputs.
Tax considerations
Interest income may have tax implications depending on your circumstances and applicable rules. A calculator estimate should not be treated as a tax determination.
Check the maturity amount
Use the FD calculator to experiment with principal, rate, tenure, tax and inflation assumptions.