## About This Tool

The online 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 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 × e^{rt}

Where:

A = final amount

P = deposit amount (initial investment)

r = annual nominal interest rate

t = number of years