RD Calculator

Output:
Interest Growth Over Time
Monthly Breakdown
Month Deposit Interest Earned Total Amount

Recurring Deposit (RD) Calculator – Estimate Your Savings

A Recurring Deposit (RD) is a popular savings scheme where you invest a fixed amount every month, earning interest over time. Our RD Calculator helps you estimate the maturity amount based on your monthly deposit, interest rate, and tenure.

Use this tool to plan your savings efficiently and achieve your financial goals.

What is an RD Calculator?

The Recurring Deposit Calculator is an online tool that computes the maturity value of your RD based on:

  • Monthly deposit amount
  • Rate of interest
  • Investment tenure
  • Compounding frequency

This tool saves time and provides accurate results instantly.

How to Calculate RD Maturity Amount?

RD returns are calculated using the compound interest formula:

Maturity Amount (A) = P × [(1 + r/n)^(nt) - 1] / (1 - (1 + r/n)^(-1))

Where:

  • A = Maturity Amount
  • P = Monthly Investment
  • r = Annual Interest Rate (as a decimal)
  • n = Number of times interest is compounded in a year (Quarterly = 4)
  • t = Tenure in years

The interest in RD is compounded quarterly.

Example of RD Calculation

Suppose you invest ₹5,000 per month in an RD account at an interest rate of 6.5% per annum for 5 years.

Step-by-Step Calculation:

  • Monthly Deposit (P) = ₹5,000
  • Annual Interest Rate (r) = 6.5% = 0.065
  • Tenure (t) = 5 years
  • Compounding Frequency (n) = 4 (Quarterly)

Using the formula, the maturity amount will be approximately ₹3,48,000.

Benefits of Investing in RD

  • Guaranteed Returns: Fixed and assured interest rates.
  • Disciplined Savings: Helps in building a savings habit.
  • Flexible Tenure: RD tenures range from 6 months to 10 years.
  • Safe Investment: No risk of market fluctuations.
  • Loan Facility: Some banks allow loans against RD deposits.

How to Use the RD Calculator?

  1. Enter your monthly deposit amount.
  2. Choose the applicable RD interest rate.
  3. Select the tenure (in months or years).
  4. The calculator will instantly display the estimated maturity value.

Frequently Asked Questions (FAQs)

The minimum tenure for an RD is 6 months, while the maximum tenure can be up to 10 years.

Yes, the interest earned on RD is taxable as per your income tax slab. TDS is deducted if the interest exceeds ₹40,000 per year (₹50,000 for senior citizens).

Yes, premature withdrawal is allowed but with a penalty, which varies from bank to bank.

Yes, many banks offer loans against your RD, typically up to 80-90% of the RD amount.

Conclusion

The RD Calculator is a valuable tool to plan your savings and predict your maturity returns accurately. With a disciplined savings habit and fixed returns, RDs are one of the safest investment options.

Start your RD investment today and grow your wealth securely!