What is a Recurring Deposit (RD) Calculator?

An RD Calculator online is a completely free tool that provides you with an exact understanding of how much your monthly savings will grow to maturity. Here it provides:

• Total maturity amount (principal + interest)
• Total interest earned for the tenure
• Monthly deposits with growth statistics

If you have an RD investment from SBI, HDFC, ICICI, Axis Bank, or Post Office schemes, you will have results in seconds without spending time on calculating all the figures manually or using spreadsheets.

How Does the RD Calculator Work?

To get your results, just enter four basic details:

• Monthly Deposit – The fixed amount you plan to save each month.
• RD Tenure – Duration of your deposit (6 months to 10 years).
• Interest Rate – The rate offered by your bank or post office.
• Compounding Frequency – For RDs, interest is compounded quarterly.

RD Interest Calculation Formula

The formula for RD maturity value is:

Where:

• P = Monthly deposit
• r = Annual interest rate
• n = Compounding frequency (quarterly = 4)
• t = Tenure (in years)
• M = Maturity value

Why Invest in Recurring Deposits (RD)?

• The safe and secure method - this is possible through the backing of banks and post offices and all with fixed guaranteed returns.
• It promotes discipline - allows the user to build the habit of saving monthly in a condensed manner.
• The terms are flexible - you can choose your time frame from 6 months to 10 years.
• It returns more than your savings account - it can earn more interest than ordinary savings deposits.
• It has a loan facility - you can avail yourself of loans of up to 90% of your RD amount if you feel you need to do so.
• It has taxes to adhere to - interest transactions above ₹40,000.00 (or ₹50,000.00 for senior citizens) subject to TDS as per income tax essentials.

Disclaimer

The RD Calculator provides estimates for informational and educational purposes only. Actual maturity amounts may vary depending on bank policies, interest rate changes, and compounding frequency. Consult a financial advisor or bank official before making investment decisions.