When deciding if an investment is ideal, the interest you can earn is one of the most crucial factors. With fixed deposits, your earnings vary depending on the invested amount, the chosen tenor, and the interest rates offered by the issuer.


Hence, it becomes crucial to determine the interest receivable on different FD schemes to ensure you invest in the right one. There are multiple methods you can choose from – the simple interest formula, compound interest formula, or the ₹1.5 interest for ₹1 Lakh equation.


Read on to learn how to calculate ₹1.5 interest for a ₹1 Lakh FD and make an informed investment decision.

Formula With Illustrations

You can calculate the total interest receivable on a ₹1 Lakh FD in the same way as the ‘₹1 interest’ method. Here is an illustration of how to calculate ₹1.5 interest for a ₹1 Lakh FD and other ways to calculate your FD interest:

Calculation Method



‘₹1.5 Interest for ₹1 Lakh’ Method

With ₹1.5 interest on ₹100, the annual interest rate would be 1.5 X 12 = 18%

If you invest ₹1 Lakh at a 1.5% interest rate per month, your annual interest rate would be 18%.

Monthly interest to be received = 1,00,000 X 1.5/100 = ₹1,500

Simple Interest Method

The formula for simple interest is: I = p × r × t



  • I = interest amount

  • P = principal amount

  • R = Annual rate of interest 

  • T = Tenor (in years)

If you invest ₹1 Lakh for a year, the interest earned at the end of the tenor would be,

1,00,000 X 18/100 X 1 = ₹18,000

Monthly interest earned: 18,000/12 = ₹1,500

Compound Interest Method

The formula for compound interest is,

I = [P (1 + r/n)^n X t] – P



  • I = Interest value

  • P = Principal amount

  • r = Interest rate

  • n = Number of compounding periods

  • t = Tenor

On investing ₹1 Lakh for one year, compounded annually, the interest is calculated as,

 [1,00,000 X (1+18/100/1)^1*1] – 1,00,000 = ₹18,000

Monthly interest earned: 18,000/12 = ₹1,500 

₹1.5 Interest for a ₹1 Lakh FD Per Month

The interest you can earn with ₹1.5 interest for a ₹1 Lakh FD investment depends on the tenor and the type of FD you choose. For instance, the interest earnings would be higher in a compounding FD than that of an FD with simple interest. 


This is because the current interest gets added, or compounded, to the principal amount for the purpose of calculating your next interest. As such, you earn interest even on the accumulated interest. 


You can calculate the monthly interest or the total interest using the simple or compound interest formula with the appropriate values. However, manual calculations can be risky as there is a chance of error. Moreover, it can be tedious and time-consuming.

A better alternative to manual calculations is the FD calculator available on Bajaj Markets. This is an online tool that allows you to calculate FD interest amounts quickly and without any hassle.


You can even compare the returns from different schemes, as there are no limitations on how many times you can use the calculator. Moreover, Bajaj Markets is a platform with numerous best FD schemes, allowing you to make the most of your investment. 


With an entirely digital process and minimal documentation, you can begin investing in just a few clicks.


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products. 

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FAQs on How to Calculate ₹1.5 Interest for ₹1 Lakh?

What are the variables I need to enter in the FD interest calculator?

To determine the total interest amount with an FD calculator, you need to enter three variables. These include the initial amount of investment, the interest rate offered by the issuer, and the chosen tenor. You may also need to enter the FD payout option and your age.

What is the simple interest formula to calculate ₹1.5 interest for a ₹1 Lakh FD?

The simple interest formula is: P X R X T.

What will be the compound interest to calculate ₹1.5 interest for a ₹1 Lakh FD compounding annually with a tenor of 5 years?

The total interest that you can earn on such an FD amounts to ₹1,28,776. However, note that this is an estimate calculated using the FD calculator and your actual returns may vary.

What is the compound interest formula used for calculating interest for ₹1.5 interest for a ₹1 Lakh FD?

The compound interest formula is: [P (1 + r/n) ^nt] – P. 

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