# RD Calculator

Every investment requires consistency which is a problem for many individuals. Consistency and patience can surely give you better returns on your investments. It can be an issue in your financial path; therefore, constantly investing a tiny amount of money can help you build up your corpus and eventually meet your financial objectives. A recurring deposit is a wise investment tool to take on a disciplined financial journey. You can use our online RD calculator to determine the maturity date and potential interest earnings on your recurring deposit (RD) investment.

## What is RD Calculator ?

Any investor can quickly determine the amount of their recurring deposit maturity with the aid of an RD calculator. Using the online RD calculator from freeemicalculator.in can eliminate the need to work out the tricky RD calculation procedure to determine the precise maturity amount. You need only provide the necessary information to evaluate your investment maturity amount.

The benefits of using our RD calculator are as follows:

- Using the RD calculation formula to compute difficult calculations will not be necessary for you anymore.
- Recurring Deposit calculators save you time by providing results in a matter of a few seconds.
- They use the standard calculation formula; therefore, the online RD calculators are precise, showing error-free results.
- Better financial planning will be made possible by the precision of calculations.

However, one thing to note with the RD calculator is that it usually does not take taxation into account. The new RBI regulations state that TDS deductions must be made from RDs as well. As there is no uniformity in its implementation among financial institutions, it is not included in our RD Calculator.

## Tax Benefits on RD Investment

It’s mandatory to pay taxes on interest from RDs. Therefore, a TDS of 10% will be taken at the source if a person earns more than 10,000 in interest on RDs in a fiscal year. Furthermore, when you file your income tax returns, you have to include all interest on RDs as income from other sources.

The Free EMI Calculator’s RD calculator helps you determine the maturity amount before tax deduction and according to your income tax slab.

### How to use our Recurring Deposit Calculator Online?

Our RD return calculator is a handy online self-help tool that will help you compute your RD maturity sum. To evaluate, you have to do is enter the following:

- RD investment amount: The amount you want to save in regular investments
- Rate of Interest: Interest rate in percentage offered by the bank and NBFCs
- Time period: Tenure of your investment

Once you’ve entered the details, tap on the calculate button, and it will calculate your RD investment maturity. Using our RD calculator, you may quickly determine your interest earned and investment maturity amount.

## RD Calculation Formula

There are two approaches to calculating interest on fixed deposits – simple and compound interest. Here, you can find both of them.

To calculate interest, our calculator uses the following formula:

A = P*(1+R/N)^Nt

- A = Maturity amount
- P = Amount of periodic investment
- R = Interest rate in percentage
- t = Tenure or time duration of the deposit
- N= Compounding frequency (Most often, this is 4, since interest is compounded quarterly)

This is the standard formula used in every calculator of the RD maturity amount, regardless of the investment amount or tenure. All you have to do is put in the component value, and you’ll get the results instantly.