liminfoFixed Deposit Calculator
Free web tool: Fixed Deposit Calculator
Fixed Deposit Calculator
Calculate maturity amount for your fixed deposit with compound interest.
Maturity Amount
$141,478
Total Interest Earned
$41,478
Effective Annual Rate
7.19%
About Fixed Deposit Calculator
The Fixed Deposit Calculator computes the maturity value of a fixed deposit (FD) or term deposit using the compound interest formula: A = P × (1 + r/n)^(n×t), where P is the principal, r is the annual interest rate as a decimal, n is the number of compounding periods per year, and t is the tenure in years. Enter your deposit amount, annual interest rate, tenure, and select a compounding frequency (annually, semi-annually, quarterly, monthly, or daily) to instantly see the maturity amount, total interest earned, and the effective annual rate (EAR).
Fixed deposits are one of the most widely used savings instruments globally, offered by banks and financial institutions as a secure, fixed-return product. Understanding the impact of compounding frequency on returns is crucial for comparing FD offers: a monthly-compounding FD at 7% p.a. yields a higher effective return than a annually-compounding FD at the same nominal rate. The effective annual rate (EAR), calculated as (1 + r/n)^n − 1, shows the true annualized return accounting for intra-year compounding.
All calculations run entirely in your browser with no data sent to any server. Results update in real time as you adjust any input, making it easy to compare different deposit scenarios. The tool is free, requires no account, and works on any device.
Key Features
- Compound interest calculation using A = P × (1 + r/n)^(n×t)
- Five compounding frequency options: annually (1×/yr), semi-annually (2×/yr), quarterly (4×/yr), monthly (12×/yr), and daily (365×/yr)
- Displays maturity amount, total interest earned, and effective annual rate (EAR) simultaneously
- Effective annual rate (EAR) = (1 + r/n)^n − 1 shows the true return after accounting for compounding
- Accepts any principal amount, interest rate, and tenure up to decades
- Real-time updates as you change any input — instantly compare FD scenarios
- 100% client-side — no data is ever sent to a server
- No sign-up, no download, and completely free to use
Frequently Asked Questions
What is a Fixed Deposit (FD)?
A fixed deposit is a financial instrument where you deposit a lump sum with a bank or financial institution for a predetermined period at a fixed interest rate. At maturity, you receive your principal back plus the accumulated interest. FDs are considered low-risk investments because the return is guaranteed and not subject to market fluctuations.
What formula does this calculator use?
The calculator uses the standard compound interest formula: A = P × (1 + r/n)^(n×t), where A is the maturity amount, P is the principal, r is the annual interest rate divided by 100, n is the number of compounding periods per year (1 for annual, 2 for semi-annual, 4 for quarterly, 12 for monthly, 365 for daily), and t is the tenure in years.
What is the Effective Annual Rate (EAR)?
The Effective Annual Rate (EAR) is the actual annual return accounting for intra-year compounding, calculated as (1 + r/n)^n − 1. It is always equal to or greater than the nominal rate. For example, a 7% nominal rate compounded quarterly gives an EAR of (1 + 0.07/4)^4 − 1 ≈ 7.19%, meaning you effectively earn 7.19% per year.
How does compounding frequency affect returns?
More frequent compounding generates more interest because interest earned in each period begins earning interest in the next period. Daily compounding produces slightly more return than monthly compounding, which produces more than quarterly, and so on. For the same principal, rate, and tenure, daily compounding will always yield the highest maturity amount.
What is the difference between the nominal rate and the effective annual rate?
The nominal rate (also called the stated rate) is the annual interest rate before accounting for compounding within the year. The effective annual rate (EAR) reflects the actual return after compounding. These two rates are equal only when compounding happens once per year (annual compounding). For all other frequencies the EAR exceeds the nominal rate.
Can I use this for savings accounts or certificates of deposit (CDs)?
Yes. The formula and compounding logic are identical for savings accounts, certificates of deposit, term deposits, and fixed deposits. Simply enter the relevant interest rate, tenure, and compounding frequency. For US CDs, the APY (Annual Percentage Yield) listed by banks is equivalent to the EAR this calculator shows.
How do I compare two FD offers with different rates and frequencies?
Enter each offer's principal, rate, and compounding frequency separately and compare the Effective Annual Rate shown. The offer with the higher EAR will always yield more at maturity for the same principal and tenure. Alternatively, compare the maturity amounts directly by keeping principal and tenure the same.
Does this calculator handle tax on FD interest?
No. The calculator shows pre-tax maturity amounts and interest. In many countries, interest income from fixed deposits is taxable. To estimate after-tax returns, subtract your marginal tax rate from the total interest earned. For example, if total interest is $5,000 and your tax rate is 30%, after-tax interest is approximately $3,500.