RD Calculator

What is the RD Calculator? 

RD stands for “Recurring Deposit”, and it is an easy way to save money on a monthly basis. You can say it’s very much similar to Fixed Deposit (FD), except you don’t need to put in a lump sum amount at once, you just have to make a deposit every month. RDs are more convenient for people who want to save a part of their income every month with what they have, and they also develop a habit of saving for the future. 

If you’re someone who wants to save some of your wealth at a constant rate, then RDs are the way to go. This facility exists with most banks and financial institutions, and you can get interest on your savings. 

Moreover, the actual returns you will get by RD can be a little confusing, especially if you are not good with calculations, that’s where an RD calculator comes to the rescue with this tool you don’t have to take all that trouble of computing the interest, it will give you the total amount you’ll get at the end of your RD tenure.

How Can An RD Calculator Help You?

A Recurring Deposit (RD) is a smart way to save money regularly (every month); however, when it comes to finding out the returns, it seems difficult because of the hard calculations, especially when you are a new investor. This is because the interest on RD is compounded quarterly which has a lot of variables like deposit amount, time, and interest rate. That’s when an RD Calculator becomes your saviour. It saves a lot of time by doing the tough calculations and shows you exactly how much your money will grow over time. RD calculator provides immediate, accurate results with ease.

There is one point to always remember: TDS (Tax Deducted at Source) is generally not mentioned in the calculator, as not all banks follow the same rules for TDS on RDs. So, you should always confirm with your bank how TDS is being applied in your case. Here are some ways how RD calculator helps you: 

• Smart Planning: You already know exactly how much you will get on maturity and plan your savings and future expenses efficiently.
• Saves Time: You don’t have to do any manual mathematics and hard calculations. The calculator gives you all the results instantly.
• Accurate Results: It provides the actual figures that are needed to make better financial decisions and improve investment strategies. 
• Easy-to-use: You don’t need to have financial knowledge, just select your monthly investment amount , expected return rate, and total time period. 

Formula To Determine RD Maturity 

Calculating the maturity value of a RD is easy if you know the values that need to be considered in the formula. However, doing calculations on your own can be stressful, incorrect and time- consuming  But the best part is our RD calculator will do it for you. The formula which is used to calculate RD Maturity is: 

A = P × (1 + R/N)^(Nt)

Where:

• A = Maturity amount
• P = Monthly deposit
• R = Expected return rate 
• N = Total number of times interest is compounded per year (the default is 4 for quarterly)
• t = Total duration 

Example

Let’s assume you invest ₹9,000 in a RD every month for 7 years with an expected return rate of 11% per annum (quarterly compounded). Using the given formula, let’s calculate the maturity amount: 

For the first month: ₹9,000 × (1 + 0.11/4)^(4×7)

For the second month:₹9,000 × (1 + 0.11/4)^(4×6.92)

The same will continue up to 7 years × 12 months (84 deposits). When the sum of all those values is done, total maturity amount stands to be around: 

• Total or Maturity Amount: ₹11,18,545 
• Amount Invested: ₹7,56,000
• Wealth Gained : ₹3,62,545

Example: https://sip-calculator.in/sip-with-monthly-investment-of-inr-9000-with-return-of-11-percent-for-7-years/

How Our RD Calculator Works? 

Our RD Calculator is an effective, smart and user-friendly tool designed to help investors in better financial planning. Here’s how you can use our RD Calculator: 

1. Select Your Investment Type: Our RD calculator has two categories so start by choosing the category of investment that satisfies your financial goal:

• SIP (Systematic Investment Plan): Choose SIP, if you want to invest a regular sum every month.
• Lumpsum: Choose Lumpsum, if you want to make a one-time investment to grow over time.

2. Set Your Monthly Investment: Drag the slider to see how much you will invest each month. Investors can start with an investment of as little as ₹500 and invest a maximum amount of ₹5,00,000. 
3. Set Your Expected Return Rate: Now, slide and choose the rate of return that you expect in the future. You can pick a rate of any value, from 1% to 100%, depending on your market view and budget. 
4. Choose The Time Period: You have to slide the slider and choose how much period of time you want to invest– anywhere from 1 year to 40 years. 
5. Click on “Calculate”: When you are done with everything, just click the “Calculate” button. 
6. Get Immediate, Accurate Results: You can check the total amount invested, wealth gained, and total wealth. Also, you can check the investment distribution graph, year-wise growth chart,  and summary section. 

Advantages of Using RD Maturity Calculator 

Here are the advantages of using our RD Calculator, if you want fast and accurate results: 

1. No Manual Calculations: You don’t have to learn the formulas and do manual calculations by yourself. Our calculator does all the work for you in a few clicks.
2. Saves You Valuable Time: Instead of wasting energy on solving math equations, you can get instant results and more time to concentrate on financial goals.
3. Instant & Accurate Results:  Our calculator provides you accurate maturity values in seconds that you can depend upon to make decisions with confidence.
4. Better Financial Planning: When you know exactly how much you get you’re better able to plan your investments, your expenses, and your future goals.
5. User-Friendly and Free: Whether you’re a new investor or an experienced, our calculator is easy to use, simple in design and, best of all, 100% free.