RD Calculator (Recurring Deposit)
About Recurring Deposit (RD) Calculator
The RD Calculator helps you estimate the maturity amount and interest earned on your recurring deposit. By investing a fixed amount monthly, you can easily plan your savings and see how your deposits grow with compound interest over time.
Formula (Simple Explanation)›
M = P × n + P × n(n + 1) × r / (2 × 12 × 100)
Where: M = Maturity amount, P = Monthly deposit, n = Number of months, r = Annual interest rate (%).
Example:
Input: ₹2,000 deposited monthly for 3 years at 7% annual interest
Output: Maturity Amount = ₹79,200 and Interest Earned = ₹7,200.
Steps to Use:
- Enter your monthly deposit amount (₹).
- Enter the annual interest rate (%).
- Enter the time period (in months or years).
- Click 'Calculate' to view your maturity amount and total interest earned.
Frequently Asked Questions
What is a Recurring Deposit (RD)?›
A Recurring Deposit is a savings scheme where you invest a fixed amount every month for a set period and earn interest on it. It helps you build disciplined savings with steady returns.
How does the RD Calculator work?›
The calculator computes your total maturity amount based on your monthly deposit, tenure, and annual interest rate using the RD formula.
Can I withdraw my RD before maturity?›
Yes, you can withdraw before maturity, but most banks charge a small penalty and reduce the interest rate for premature withdrawal.
Is RD better than SIP or FD?›
RD is safer than SIP as it’s a bank-backed scheme with fixed returns. However, SIPs generally provide higher returns but come with market risks.