What this calculator does
Computes the terminal maturity value of a lump sum deposit based on compound interest conventions prescribed by the Reserve Bank of India.
Formula & Mathematical Logic
A = P × (1 + r ÷ n)^(n × t)
P is principal, r is nominal annual rate as a decimal, n is compounding cycles per year, and t is tenure in years.
How WealthAura calculates this
P is deposited at annual rate r, compounded n times per year (quarterly = 4 as standard in Indian commercial banks) for t years.
Worked example
A ₹5,00,000 fixed deposit at 7.25% for 5 years compounded quarterly matures at approximately ₹7,16,130 with ₹2,16,130 interest.
Input sensitivity & what changes
Quarterly compounding at 7% generates more interest over 5 years than annual compounding, illustrating the impact of compounding frequency.
How to interpret the result
Shows guaranteed return at maturity. Compare with inflation to assess real wealth preservation.
Key factors that influence the outcome
Senior citizen concessions (+0.50%), premature withdrawal penalty clauses, and quarterly compounding cycles.
Common calculation mistakes to avoid
Ignoring quarterly compounding or assuming gross maturity excludes bank TDS deductions.
Underlying assumptions & legal caveats
Cumulative deposit where interest is reinvested until maturity. No premature withdrawal.
Read the related guide →