RD Calculator

Recurring Deposit Calculator

Recurring deposits (RDs) are an investment instrument almost similar to fixed deposits. However, you have to make fixed monthly deposits in RDs, unlike a lump sum amount in FDs. RDs create a habit of regular investment among earning individuals. These also instil discipline when it comes to savings. Recurring deposits are offered by the majority of banks and financial institutions.

How to use NISM’s RD calculator?

The Recurring Deposit Calculator ask the user to enter following three inputs: –

1. Invested Amount – The amount one wish to invest every month for a stated tenure.
2. Expected rate of return (per annum) – The interest rate one can expected on invested amount during the tenure of the investment.
3. Time Period / Tenure (in Yrs) – The number of years for which user money will stay invested with financial institutions (Banks, NBFCs, Company FDs etc).

The Recurring Deposit Calculator generates the following output for the user: –

• Total Invested– It let the user knows how much money s/he invested as principal amount during the investment period.
• Interest earned – It generates how much interest income added to investor portfolio on account of invested money.
• Total Value of Investment – It shows how much is the value of investor portfolio after the tenure of the investment. It includes the principal invested and interest earned thereon.

It calculates the interest amount based on compound interest. All the interest payments are considered as received at the end of the period.