Fixed Deposit (FD) Calculator
Maturity amount of a fixed deposit with quarterly compounding, as most banks use
Interactive Sandbox
Adjust values in real-time and observe mathematical cause-and-effect
Exponential Compounding Growth: Returns generate subsequent returns over time t, rapidly accelerating capital growth.
Variable Mechanics
Roles, constraints & impacts
Deposit Amount
Formula Parameter
Annual Interest Rate
Formula Parameter
Tenure
Formula Parameter
At a Glance
Gotchas, units & real-world use
Formula Nature & Mechanics
Exponential Compounding Growth: Returns generate subsequent returns over time t, rapidly accelerating capital growth.
Common Mistakes & Traps
- Entering annual percentage rate (e.g. 7%) as 7 instead of converting to decimal 0.07.
- Neglecting the compounding frequency (n): monthly compounding produces higher yield than annual.
- Ignoring inflation drag when evaluating long-term nominal returns.
Dimensional Analysis & Units
Currency × (1 + rate)^time = Future Currency ($)
Real-World & Industry Application
Retirement 401(k) / Roth IRA compounding, mortgage amortization schedules, bond yield analysis, and inflation depreciation modeling.
Worked Example: Fixed Deposit (FD)
Given:
- principal = 100000
- rate = 7
- years = 5
- Quarterly rate = 7% ÷ 4 = 1.75%
- Quarters = 5 × 4 = 20
- A = $100,000 × (1 + 0.0175)^20 = $141,477.82
- Interest earned = $41,477.82
- Effective annual yield = 7.186%
Answer: 141477.82
Frequently Asked Questions
What is the Fixed Deposit (FD) formula?
A = P × (1 + r/4)^(4t). Maturity amount of a fixed deposit with quarterly compounding, as most banks use.
How do I calculate Fixed Deposit (FD)?
Enter Deposit Amount (principal), Annual Interest Rate (rate), Tenure (years) into the calculator. It applies A = P × (1 + r/4)^(4t) and shows every step of the working.
