Fixed Deposits (FDs) are one of the safest and most popular ways to save money. Banks and financial institutions offer a fixed interest rate for a fixed time. But many people wonder: how much money will I get after my FD matures?
You don’t need a complicated calculator for this. Microsoft Excel can easily help you calculate FD interest!
In this article, we will explain:
- What is an FD?
- How does FD interest work?
- How to calculate FD interest in Excel
- Important Excel formulas for FD
- Step-by-step example
- Tips and tricks
- Quick FAQ
Let’s begin!
Contents
What is an FD (Fixed Deposit)?
A Fixed Deposit (FD) is a type of saving where you deposit a certain amount of money in a bank for a fixed time.
You earn interest on this money, and after the time ends (called maturity), you get your money + interest.
Example:
You deposit ₹1,00,000 for 2 years at 6% interest per year. After 2 years, you get your money back plus the earned interest.
How Does FD Interest Work?
There are two common ways banks give FD interest:
- Simple Interest (SI) – Only the principal (original amount) earns interest. Formula: Simple Interest=Principal×Rate×Time100\text{Simple Interest} = \frac{\text{Principal} \times \text{Rate} \times \text{Time}}{100}
- Compound Interest (CI) – Principal plus earned interest earn more interest.
This is more common in banks. Interest can be compounded annually, half-yearly, quarterly, or monthly. Formula: A=P×(1+rn)ntA = P \times \left(1 + \frac{r}{n}\right)^{nt} Where:- AA = Maturity Amount (Principal + Interest)
- PP = Principal
- rr = Annual Interest Rate (in decimal)
- nn = Number of times interest is compounded per year
- tt = Number of years
How to Calculate FD Interest in Excel
Microsoft Excel can calculate FD interest easily using formulas.
You can calculate Simple Interest or Compound Interest depending on your FD type.
Here’s how:
Excel Formulas for FD Interest
1. Simple Interest Formula
If you want to calculate Simple Interest:
= (Principal * Rate * Time) / 100
Example Excel formula:
= (100000 * 6 * 2) / 100
Result = ₹12,000
Total Amount = Principal + Interest
Formula:
= Principal + Interest
Example:
= 100000 + 12000
Result = ₹1,12,000
2. Compound Interest Formula
If you want to calculate Compound Interest:
Use this Excel formula:
= Principal * (1 + Rate/CompoundingPeriods)^(CompoundingPeriods * Time)
Where:
- Principal = FD amount
- Rate = Annual interest rate (in decimal form, so 6% = 0.06)
- CompoundingPeriods = How many times interest is compounded per year (Monthly = 12, Quarterly = 4, Half-yearly = 2, Annually = 1)
- Time = Years
Example Excel formula:
= 100000 * (1 + 0.06/4)^(4*2)
Result ≈ ₹1,12748.64
Interest Earned = Maturity Amount – Principal
Formula:
= MaturityAmount - Principal
Example:
= 112748.64 - 100000
Result = ₹12,748.64
Step-by-Step Example in Excel
Let’s create a simple FD Interest Calculator in Excel.
Step 1: Open Excel
Open Microsoft Excel on your computer.
Step 2: Setup the Table
In your Excel sheet, create this table:
| A | B |
|---|---|
| Principal | 100000 |
| Rate (Annual %) | 6 |
| Time (Years) | 2 |
| Compounding | Quarterly (4) |
| Maturity Amount | (Formula Here) |
| Interest Earned | (Formula Here) |
Step 3: Insert Formulas
For Maturity Amount (B5):
Type this formula:
= B1 * (1 + (B2/100)/B4)^(B4*B3)
For Interest Earned (B6):
Type this formula:
= B5 - B1
Easy-to-Understand Example
Imagine:
- You deposit ₹50,000
- Annual interest rate = 7%
- Time = 3 years
- Compounding = Half-yearly (2 times a year)
In Excel:
- Principal (B1): 50000
- Rate (B2): 7
- Time (B3): 3
- Compounding Periods (B4): 2
Formula for maturity amount:
= 50000 * (1 + (7/100)/2)^(2*3)
Result ≈ ₹61,613.64
Interest earned:
= 61613.64 - 50000
Result ≈ ₹11,613.64
Tips and Tricks
- Use Cell References: Always use cell names (like B1, B2) in formulas instead of typing numbers. It’s easier to update later.
- Decimal Conversion: Always divide interest rate by 100 if it’s in percentage form.
- Compounding Frequencies:
- Annual = 1
- Half-yearly = 2
- Quarterly = 4
- Monthly = 12
- Rounding Values: You can use the ROUND formula to round your result to 2 decimal places.
Example:
=ROUND(B5, 2)
- Interest Only: If you want only the interest earned, subtract principal from maturity value.
Quick FAQ
Q1. Can Excel automatically adjust for different compounding periods?
Yes! You can input the compounding frequency and use it in your formula.
Q2. How to calculate monthly FD interest in Excel?
Set Compounding Periods to 12 and adjust the formula accordingly.
Q3. Is there a built-in FD calculator in Excel?
No direct FD calculator, but you can create one using formulas easily.
Q4. What if the FD time is in months, not years?
Convert months into years. Example: 6 months = 0.5 years.
Q5. Can I calculate FD maturity date in Excel?
Yes! Use the EDATE function. Example:
=EDATE(StartDate, Months)
✅ Your ready-to-use Excel FD Calculator template is ready!
You can download it here:
Download FD_Calculator_Template.xlsx
Conclusion
Microsoft Excel is a powerful and easy tool to calculate FD interest.
You don’t need special software or complicated apps.
Just set up a simple table, use basic formulas, and you can calculate both Simple Interest and Compound Interest easily.
This way, you can plan your savings better, compare FDs from different banks, and make smart financial decisions!