Interest rates are one of the most important factors to consider when deciding which fixed deposit scheme to choose. The interest is the amount you earn on the principal you invest and depends on the predetermined FD interest rate


If you are wondering how to calculate ₹2 interest for ₹10,000 per month, the answer is simple. You can use the simple interest formula or the compound interest formula. This will help you choose the right FD and compare different fixed deposit plans with ease. 


Read on to learn more about calculating your FD returns.

FD Interest Formula with Example

The formula to calculate the interest earned on ₹10,000 at 2% interest depends on whether you are computing simple or compound interest. Regardless, the calculation is very similar to that of ₹1 interest or ₹3 interest. 


As such, ₹2 interest means that you earn ₹2 for every ₹100; therefore, the interest rate is 2%. Here is a table that shows how you can compute ₹2 interest for ₹10,000 per month:


Calculation Method



‘₹2 interest for ₹1 Lakh Per Month’ Method

With ₹2 interest on ₹100, the yearly interest rate would be 2 x 12 = 24%

For an FD investment of ₹10,000 for monthly payouts at ₹2 interest, your rate of interest would be 24%.


Monthly interest to be received = 10,000*2/100 = ₹200

Simple Interest Method

I = p × r × t



  • I = Interest amount

  • p = Principal amount

  • r = Interest rate

  • t = Investment tenor

On investing ₹10,000 for one year, the interest earned would be: 10,000 X 24/100 X 1 = ₹2,400


Calculate the monthly interest by dividing the interest amount by the number of months. 


Here, monthly interest would be = 2,400/12, i.e., ₹200.

Compound Interest Method

I = [P (1 + r/n)^n X t] – P


  • I = Value of interest 

  • r = Interest rate (in decimal format)

  • n = Number of compounding periods 

  • t = Tenor

Say you invest ₹10,000 for two years with annual compounding. 


The interest amount calculation would be: 

[10,000 X (1+24/100/1)^1*2] - 10,000 = ₹5,376


Here’s the formula to calculate monthly interest: 

Monthly interest = total interest/number of months


Therefore, the monthly interest is:

 5,376/24 = ₹224

₹2 Interest for ₹10,000 Per Month

The monthly interest for ₹10,000 at 2% interest depends on the formula used and investment terms. It will also vary depending on the issuer you choose. You can use the above formulas to calculate the interest earnings and compare the same to choose the best option. 


Remember that the interest earned on a compounding FD of more than one year, is higher than a simple interest FD. This is because when your interest is compounded, it is added to 

your principal investment to calculate the next interest amount. 


As such, you earn interest on your interest, which is not the case in simple interest. However, you need to compare different options from various issuers and consider your goals before investing. 


While you can use the above formulas to calculate your interest gains, this can take up a lot of time. What’s more, you may be prone to making mistakes if you are trying a number of combinations. 


To avoid this, you can use the FD calculator available on Bajaj Markets. Besides being quick, this online tool makes the FD interest calculation easy and speedy. All you have to do is enter the investment terms. 


You can also choose an FD from top issuers and invest seamlessly via Bajaj Markets. With an end-to-end digital process, you can get started 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 ₹2 Interest for ₹10,000 Per Month

How much can I earn on ₹2 interest for a ₹10,000 FD for one year, if it compounds annually?

You can earn ₹200 per month if you invest in an FD offering ₹2 interest for ₹10,000, compounding annually for a year. 

How to calculate interest on FD of ₹10,000 at 2% interest per month using the simple interest formula?

The simple interest formula to calculate interest on FD is P X R X T/100. Here, P, R, and T stand for the principal amount, interest rate, and the tenor, respectively. Once you enter the values, p = 10,000, r = 24, t = 1 or a tenor of your choice, you will get the total interest amount. After that, you can divide it by the number of months to get the monthly interest amount. For instance, if the tenor is 3 years, the total interest will be ₹7,200, and the monthly interest will be ₹200 (7200/36).

What is the compound interest formula to calculate ₹2 interest for ₹10,000?

The compound interest formula to calculate the FD interest is [P (1 + r/n)^n X t] – P.



P = Principal amount 

r = Interest rate in decimal format

n = Number of times it is compounded in a year 

t = Investment tenor.

How to access the FD interest rate calculator to compute interest on FD?

You can access an FD interest rate calculator on Bajaj Markets. To calculate your FD interest, all you have to do is enter the initial investment amount, interest rate, and tenor. 

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