Learn How to Calculate Online Fixed Deposit Interest Rates with FD calculator

In India, fixed deposits are becoming increasingly popular. Fixed deposits offer a high return and offer flexibility in operations, making them a popular investment choice. The account holder can estimate the amount he is likely to receive on the maturity of the FD in advance. Planning finances for the future can be made easier by calculating returns. An online FD calculator makes it easier to estimate fixed deposit returns.

Banks and NBFCs predetermine interest rates on fixed deposits according to the tenure of the deposit. Regardless of how the interest rate for a fixed deposit is calculated, it is an internal aspect of the bank that is not divulged to the public. You shouldn’t worry about calculating interest rates; instead, you should assess the various post office FD rates offered by banks and NBFCs for the period you are establishing the deposit.

Returns from FDs are calculated with a formula.

Calculating the return on FDs can be done manually or with the help of an online FD calculator. Below is a formula that you can use to calculate the fixed deposit return manually.

Returns = Principal investment + (Principal investment × interest rate × investment tenure/100)

Calculating returns manually is valid. There is, however, a high chance of errors with this method. Regarding interest calculations, those are calculated using a compounding method. In order to calculate future values, we use the following formula:


A = total amount earned.

P = amount invested

r = rate of interest

n = number of times interest is compounding

t = tenure.

Your fixed deposit can be compounded quarterly, half-yearly, or yearly, depending on your preference.

What is the formula for calculating the interest rate on a fixed deposit?

Rather than just a digital era, today’s is a digital one. There is even an online store where you can purchase safety pins. Likewise, each bank now has an online system for handling fixed deposits. Additionally, they have a fixed deposit calculator. Considering that each bank offers a different rate of interest for their fixed deposits, you must first choose which bank to use.

You need to specify the amount you will open a fixed deposit after selecting the bank or financial institution where you want to open your account. Your request for a post office FD rates calculation implies that you already have an account since you are here asking for one. 

The rate of interest should be confirmed by the bank or by referring to your original documents. A fixed deposit calculator can be found on the fixed deposit page of the bank’s or financial institution’s website if you mean the interest amount.

FD calculators: why should you use them?

Here are some benefits of using an online FD calculator.

  • It saves time and energy to estimate returns for fixed deposits using an online calculator when multiple variables are involved.
  • Different FD schemes from different lenders can be compared using it.
  • Calculations using FD calculators are more accurate than those using manual methods.

Calculating Fixed Deposits: Steps to follow

FD calculators are easy to use, and everyone can use them. Below are the steps you need to follow when you open any online FD calculator.

  • Make an investment decision regarding the amount of your fixed deposit.
  • The post office FD rates applicable to the selected lender should be entered.
  • Choose a tenure for your investment.
  • After all the inputs are entered, a fixed deposit maturity amount will be computed and displayed.