Step 1: Understanding the Interface
Our calculator has 3 core inputs:
- Principal Field: Enter your investment amount (e.g., ₹5,00,000)
- Rate Field: Input your bank’s FD rate (check current rates here)
- Tenure Field: Choose investment duration (1–10 years)
Pro Tip: Use commas for large numbers (e.g., 5,00,000 instead of 500000).
Step 2: Calculation Logic
We use the simple interest formula:
Interest = (Principal × Rate × Tenure) / 100
Example 1: ₹2L @6.5% for 3 years = ₹39,000 total interest.
Example 2: ₹10L @7% for 5 years = ₹3,50,000 total interest.
Common Mistakes to Avoid
- Forgetting to include decimal points in rates (e.g., 6.5 vs 6.5%)
- Using monthly rates instead of annual rates
- Ignoing TDS implications (see our Tax Guide)
Step 3: Analyzing Results
Our tool shows:
- Monthly Payouts: Ideal for retirees needing regular income
- Yearly Payouts: Better for annual financial goals
- Pie Chart: Visualizes how interest accumulates over time
Case Study: A 35-year-old investor planning for their child’s education (10-year FD):
- Principal: ₹15L
- Rate: 7.2%
- Total Interest: ₹10,80,000
- Yearly Payout: ₹1,08,000
Advanced Features
1. Scenario Comparison
Compare 2 FDs side-by-side using our dual calculator (coming soon).
2. Historical Rate Analysis
Use our FD Rate Trends page to choose optimal tenures.
3. Mobile Optimization
Works offline once loaded—perfect for rural areas with unstable internet.