RD Calculator

• Fill the Monthly Amount data
• Select the tenure in Months using slider
• Move the slider and select the Interest Rate 
• Your maturity RD amount will be displayed.

You can recalculate your RD maturity amount anytime by changing the inputs.

How Is RD Interest Calculated?

Interest on RD is compounded quarterly, in most banks. The formula for this is :

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )

Where,

• M = Maturity Value
• R = Monthly Installment
• n = Number of quarters
• I = Rate of interest/400

Example Of Calculating Recurring Deposit

Example 1

Let us assume Amit invests in an RD by making monthly payments of Rs. 5,000 for a year, at the interest rate of 8%. His total savings value will be calculated as:

• R = 5000
• n = 4 (one year has four quarters)
• I = 8.00/400
• M = Rs. 62, 647 

Hence, Amit will save Rs. 62, 647 in one year. 

Example 2

Let us assume Raj invests in an RD by making monthly payments of Rs. 4,000 for a year, at the interest rate of 7%. His total savings value will be calculated as:

• R = 4,000
• n = 4 (one year has four quarters)
• I = 7.00/400
• M = Rs. 59,568

Hence, Raj will save Rs. 59,568 in one year.

Example 3

Let us assume Priya invests in an RD by making monthly payments of Rs. 10,000 for a year, at the interest rate of 5%. Her total savings value will be calculated as:

• R = 10,000
• n = 4 (one year has four quarters)
• I = 5.00/400
• M = Rs. 1,19,760

Hence, Priya will save Rs. 1,19,760 in one year.

Benefits Of RD Calculator

• Convenience: Easily calculate maturity amounts based on deposit, tenure, and interest rates for efficient planning.
• Time-Saving: Eliminates complex formulas, saving time on calculations.
• Financial Planning: Helps plan savings and provides insights for informed decisions.
• Comparison: Compare interest rates across RDs to find the best option.
• Free to Use: Available online at no cost, with unlimited usage for comparisons.

Tax Benefits Of RD

• Tax on RDs: TDS of 10% is deducted on RD returns if interest exceeds Rs. 10,000 in a year.
• SIP vs RD: SIPs, particularly in ELSS, are more beneficial for long-term, as equity gains are tax-free after one year.

The Cleartax RD Calculator simplifies financial planning by providing accurate and instant calculations, helping investors make informed decisions about their savings. While RDs offer a secure and disciplined way to save, comparing them with other investment options like SIPs can help investors choose the most suitable plan based on their financial goals.