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.
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 |
Formula |
Illustration |
‘₹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
Here,
|
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 Here,
|
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 |
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 Fixed Deposit interest calculator available on 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.
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.
Here,
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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