FD calculator is an online device that helps you to calculate the overall value of the deposited amount. It calculates the mature amount that is degenerated as per the rate of interest and the total duration. The maturity amount at the time of the return is dependent on the invested amount. To calculate this, you will need to enter the amount you will be investing, and then you will have to set the rate of interest.
The rate of interest will differ according to bank to bank. After this, you can mention the duration of the investment. The interest rates are annual, which means that the payout is based on a year. After entering the required data, the FD calculator will display the final value of the maturity. Also, it shows the amount invested, the amount generated from the margin, and the difference.
The formula used by the calculator follows the dimple method of compound interest. In which the interest is calculated with the use of previous value. That means the invested amount, along with the prior interest, is summed to calculate further interest. The formula used for Annual FD is A = P (1+R/100) ^N Where A is the final maturity amount. P is the amount which is invested by the person, and N is the duration of the investment. The R symbol id for the rate of interest of the FD.
An FD calculator does all the complicated calculations and instantly shops the accurate answers. The chances of getting a wrong estimate from the calculator are negligible. Also, you can use this calculator to compare the interest rates of several banks or firms. Such that you can make the right decision and select a perfect investing firm for your money. You get a clear number of the return of the invested value while using this.