Calculate RD Maturity Amount
Calculate RD (Recurring Deposit) Maturity Amount, Total interest, RD With Tax
What is RD Calculator?
RD calculator is a recurring deposit online calculator that helps investors to figure out the exact amount that they are going to acquire after the predetermined period. Unlike the FD, where an investor invested all of his amounts at once, in the case of RD or recurring Deposits, investors have to deposit their amount in a fixed monthly manner. So determining the achievable amount after a fixed period is quite complicated, and that’s why RD calculators are being offered. Users just have to put all the data and the internal mechanism of the RD calculator will deliver the result within seconds.
Why use RD Calculator?
Recurring deposits offered by banks or other financial institutions works in a particular manner, that is, an investor has to deposit into the scheme in a continuous way. Now, on the deposits that have been made into RD, the interest will be compounded quarterly and after the tenure, lump sum along with the interest, total amount will be paid to the investor.
Thus, the calculation is extremely complex and takes a long time. RD calculators can effectively do this hectic calculation in a blink of an eye and display the result. Besides this, there are different RD rates provided but different banks, senior citizens are excluded from taxes and usually given higher interest, combining all those factors altogether, it is better to use a calculator than doing it manually.
Advantages of using RD Calculator :
- Human error is avoided.
- Extremely efficient.
- Simple UI.
- Super quick.
Formula of calculating Recurring Deposits
Though for calculating the maturity of RD, it is advisable to use online calculators, but for curious people, the formula of calculating RD is given below.
A=P(1+r/n)^(n x t) here, A= final maturity amount, P= principal, R= interest rate, N= the number of time it compounded, T= tenure of the scheme.
let's have an example, suppose a person invests Rs. 500/- for 1 year at 5% interest rate. As per the formula, he will get Rs.6,164/-. As per the formula he will get 6164rs.