Amount:


Rate of Interest:
%

Time(in months):


interest compounding Frequency:




totalIA


Fixed Deposit is a kind of Term Deposit with higher interest rate (as compared to regular savings account) and because of high interest rate and low risk, it's quite a popular investment choice in India. The interest rate is fixed for the whole maturity period and, it's usually considered as an extremely safe investment. (AAA)

The interest rates differ bank to bank and also on the maturity period (usually 1-3 years of term deposits offer higher interest rate). The interest is compounded quarterly (every three months) in most banks.

Fixed Deposits have very low liquidity, and, you're not supposed to withdraw any amount (however you could take loan at low interest rate @ 1% or 2%) before maturity date. If you do, a penalty may be applied and the interest rate will be reduced. However, few banks (e.g ICICI) do offer fixed deposits with premature withdrawal facility.

You also need to pay taxes on the interest earned during a financial year, depending on your tax bracket. If you're in 30% tax bracket, it would be better if you invest in debt or liquid funds. (returns are somewhat similar but you get the benefit of indexation) For long term need, you could also look for some alternatives to FD, such as Ultra Short Bond funds or liquid funds or PPF (very safe and it has tax benefit as well - sec 80C) and setting up SIP for equity mutual funds. Investing in equity asset is risky but it has potential to generate higher returns in long term, FD would barely beat inflation and actual returns are lower if you consider inflation and taxes.

What is an FD Calculator?

An FD calculator is an essential tool that can be used for calculating the net profit for the whole year.

This method is usually used by real estate brokers and there are some others who use it as well.

How to calculate FD values for a Year

There are some things that can be overlooked when calculating the FD values, however, they play an important part in the whole process.

With this form of calculating, it is possible to see how many are in profits or losses and if the investor made a profit for the entire year.

This calculation is done based on the money the business makes and the profit earned from the sale of the property.

However, this calculation can be made before July or after May to be different from the initial calculations that are based on monthly profits.

When calculating the value, it’s also necessary to calculate the FD value after the mortgage.

Here are the different ways that we can calculate the FD values:

Monthly Net Profit

1. Calculate the monthly net profit for the month.

2. Calculate the FD value that is equal to the monthly profit.

Monthly Average Income

3. Calculate the monthly average income for the year and calculate the FD value for the year based on the profit.

Income Modified Earnings

4. Take the average income for the month for the year to calculate the monthly FD values.

Monthly Average Incomes

5. Take the average income of the month for the year and calculate the FD values.

Monthly Net Profit

6. Calculate the monthly net profit for the month.

(Ends June/ starts July)

Profit-To-Interest

7. Calculate the FD value that is equal to the amount of the monthly interest.

Net Profit After Interest

8. Calculate the net profit after deducting the interest.

Annual Net Profit

9. Calculate the FD value that is equal to the FD value after subtracting the annual interest.

Here are some other calculations that you can do:

1. Period Cost

2. Value of Lot Sale

3. Initial Taxes

4. Commercial Taxes

Conclusion:

With these values, it’s possible to figure out how much to invest for each period or when to do some major selling, which is always an issue with real estate and the other way is to rent out an area.

Investors should always remember to consider these before investing in something and how to calculate these values are always great when considering what to invest in.