RD Calculator - Recurring Deposit Calculator
A recurring deposit is similar to a fixed deposit, but instead of investing one lump sum, you deposit a fixed amount every month. An RD calculator estimates the maturity amount and interest earned over the selected tenure.
How can an RD calculator help you?
- It helps estimate the maturity value of monthly deposits.
- It saves time because RD calculations involve multiple monthly instalments.
- It helps compare tenures, interest rates, and monthly deposit amounts.
- It provides a clearer savings plan for future goals.
Formula to determine RD maturity
RD maturity is calculated by compounding each monthly instalment for the remaining tenure. A common representation is:
A = P x (1 + R / N) ^ (N x t)
Here, A is maturity amount for an instalment, P is the monthly instalment, R is the annual interest rate, N is compounding frequency, and t is tenure. This calculator sums the compounded value of every monthly deposit.
How to use this RD calculator
- Enter your monthly deposit amount.
- Add the annual interest rate.
- Choose the recurring deposit tenure.
- Review invested amount, estimated returns, maturity value, and yearly projection.