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RD Calculator

Total Value₹1,99,122
Monthly Investment
Interest Rate
YrMo
Time Period
Total Value₹1,99,122
Est. Returns₹19,122
Invested Amount₹1,80,000
Total Value₹1,99,122

RD Calculator (Recurring Deposit Calculator)

A Recurring Deposit (RD) is a type of term deposit where individuals with a regular income invest a fixed amount every month for a chosen period. RD helps build a savings habit by encouraging disciplined monthly investments and offers assured returns at the end of the tenure.

Manually calculating RD maturity value can be complex and time-consuming. This is where a Paytm RD Calculator helps—by giving accurate results within seconds.

What Can an RD Calculator Do for You?

Banks offer different types of recurring deposits for:

  • Regular individuals
  • Children
  • Senior citizens
  • NRIs

Each comes with different interest rates and tenures, making manual calculation difficult. An RD calculator removes this hassle by:

  • Instantly calculating maturity value
  • Eliminating manual errors
  • Helping compare multiple RD options easily

RD Interest Calculation Formula

The maturity value of a recurring deposit is calculated using the formula:

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

Where:
M = Maturity value
R = Monthly installment
n = Number of quarters (tenure)
i = Rate of interest / 400

Monthly Installment (R)

This is the amount deposited every month in the RD account. The minimum deposit varies by bank and can be as low as ₹10.

Rate of Interest (i)

The interest depends on:

  • Monthly deposit amount
  • Bank's interest rate
  • RD tenure

Tenure (n)

This is the duration of the RD. RD tenures usually range from 6 months to 10 years.

RD Calculator Example

Ved invests ₹5,000 per month for 24 months at an interest rate of 8% per annum.

Using the formula:
RD Maturity Value = ₹1,26,369

Though the formula looks simple, it involves multiple calculations. An RD calculator saves time and ensures accuracy.

How to Use the RD Calculator

Using the RD calculator is quick and simple:

  • Enter the monthly investment amount
  • Select the investment tenure using the slider
  • Enter the interest rate using the slider

The calculator will instantly display:

  • Total investment
  • Interest earned
  • Maturity amount

Advantages of Using an RD Calculator

  • Easy to use: Just enter basic details
  • Time-saving: Instant results without manual calculations
  • Accurate: Eliminates calculation errors
  • Future planning: Helps plan savings precisely
  • Comparison: Compare RD returns across banks easily
  • Free to use: Available anytime without any cost

Frequently Asked Questions

FAQs

What is a Recurring Deposit (RD)?
A recurring deposit is an investment option where a fixed amount is deposited every month for a fixed tenure, earning interest and paying a lump sum on maturity.
Yes, RDs can help in tax planning for medium- to long-term investments, but interest earned is taxable as per income tax rules.
Missing even one installment may attract a penalty or reduce interest earnings. Some banks may close the RD account if multiple installments are missed.
Yes, premature withdrawal is allowed, but banks may charge a penalty and pay interest only for the completed period.
Yes. TDS at 10% is deducted if RD interest exceeds ₹10,000 in a financial year.
No. Partial withdrawals are not allowed. You must withdraw the entire amount.
You can use the Paytm RD Calculator by entering the monthly deposit amount, tenure, and interest rate to get instant results.
It depends on your savings capacity. FD is suitable for lump-sum investments. RD is ideal for investing small amounts regularly.
Yes, nomination facility is available for RD accounts.
The minimum amount varies by bank and can be as low as ₹10.
Yes, banks usually offer 0.25%-0.75% higher interest rates to senior citizens.
Yes, premature redemption is allowed, but it may involve a penalty.