Introduction: The FD Monthly Payout Calculator is a useful tool for individuals seeking to determine the monthly payout from a Fixed Deposit (FD) based on the principal amount, annual interest rate, and tenure in months. This calculator assists users in planning their finances and understanding the potential returns from an FD.
Formula: The calculator uses the formula for calculating the monthly payout from an FD, taking into account the principal amount, annual interest rate, and tenure in months. The formula is expressed as follows: Monthly Payout = (Principal * Monthly Interest Rate) / (1 – (1 + Monthly Interest Rate)^(-Tenure)).
How to Use:
- Enter the FD principal amount in the “Enter FD principal amount” field.
- Enter the annual interest rate in the “Enter annual interest rate” field.
- Enter the tenure in months in the “Enter tenure in months” field.
- Click the “Calculate” button.
- The result, representing the monthly payout from FD, will be displayed in the “Monthly Payout from FD” field.
Example: Suppose you have an FD with a principal amount of $10,000, an annual interest rate of 6%, and a tenure of 12 months. Enter these values and click “Calculate.” The result will provide the estimated monthly payout from the FD.
FAQs:
- Q: Can I use decimal values for the principal amount, interest rate, and tenure?
- A: Yes, decimal values are accepted, and the calculator will handle them accordingly.
- Q: Is the interest rate provided monthly or annually?
- A: The interest rate should be entered annually. The calculator converts it to a monthly rate.
- Q: What happens if I leave any of the fields empty?
- A: All fields are required. Please provide values for the principal amount, interest rate, and tenure.
- Q: Can I use negative values for the principal amount, interest rate, or tenure?
- A: No, the calculator assumes positive values for these inputs.
- Q: Is the result a guaranteed payout amount?
- A: The result represents an estimated monthly payout based on the provided inputs and the formula used.
Conclusion: The FD Monthly Payout Calculator simplifies the process of estimating your monthly payout from a Fixed Deposit, providing a quick and convenient way to plan your finances. Use this calculator to gain insights into the potential returns from your FD investment and make informed financial decisions.