Recurring Deposit (RD) Calculator
Calculate the expected return from your recurring deposit (RD) over a period of time.
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Recurring Deposit (RD) – Overview & Calculation
A Recurring Deposit (RD) is a type of fixed-term investment where individuals deposit a fixed amount every month and earn interest on it. It is a popular savings option offered by banks and financial institutions.
Key Features of RD:
- Fixed monthly deposit (e.g., ₹5,000 every month).
- Interest is compounded quarterly (4 times a year).
- Fixed tenure (e.g., 1 year, 2 years, etc.).
- Maturity amount includes both principal and earned interest.
How to Calculate RD Maturity Amount
The maturity amount is calculated using the compound interest formula applied separately to each deposit:
A = P * (1+R/4)^(tx4)
Where:
- A: Maturity amount
- P: Monthly deposit amount
- R: Annual interest rate (in decimal)
- t: Tenure in years
- 4: Compounding frequency (quarterly)
The final maturity amount is obtained by summing up the maturity amounts of all individual deposits.
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