RD Calculator
Plan your finances wisely with our recurring deposit calculator
What is a Recurring Deposit (RD)?
A Recurring Deposit is a savings scheme offered by banks and post offices where you deposit a fixed amount every month and earn interest over a fixed tenure. It is a low-risk investment with guaranteed returns, making it ideal for individuals looking for systematic savings with steady growth.
Why is RD Important?
- Disciplined Savings – Encourages monthly savings.
- Guaranteed Returns – The fixed interest rate ensures predictable returns.
- Flexible Tenure – You can invest for 6 months to 10 years.
- Compounding Benefit – Compounded quarterly increases the returns
- Low Entry Barrier – With as low as ₹100 a month, anyone can start saving.
What is an RD Calculator?
The RD Calculator enables you to find out the maturity amount of your deposit based on:
- Monthly Investment Amount
- Interest Rate
- Tenure
- Saves time and provides correct financial planning.
How is RD Maturity Amount Calculated?
The formula to calculate the maturity amount of RD is as follows:
M=P× 1−[(1+r/n)^nt - 1]/[1-(1+r/n)^-1
Where:
M = Maturity Amount
P = Monthly Deposit
r = Annual Interest Rate (in decimal)
n = Number of times interest is compounded per year (quarterly = 4)
t = Tenure in years
For instance, if you save ₹5,000 a month for 5 years with an interest rate of 6.5% per annum, then at compounding, the total will be ₹3 lakh; however, the maturity amount would be around ₹3.51 lakh.
Who Can Use the RD Calculator?
- Salaried people can use the calculator to save systematically for their long-term goals.
- For the students, it is designed as an easy way to create a disciplined savings habit.
- Retirees can also use the calculator to earn stable returns on small deposits.
- Enterprises – To park surplus funds for short-term growth.
How to Use the Equirus Wealth RD Calculator?
- Monthly Investment Amount – Fixed amount you would like to deposit.
- Select Interest Rate – Input the RD rate your bank is offering you.
- Tenure – You can select a tenure of 6 months up to 10 years.
- Click 'Calculate' – Know your maturity amount and total interest earned immediately.
Benefits of an RD Calculator
- Quick & Accurate Results – No manual calculations required.
- Better Financial Planning – Useful for aiming at reasonable savings goals.
- Comparison Tool – Comparing returns for different tenures and banks.
