What Is the Calculator For Recurring Deposits?
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An RD interest calculator will help one calculate the returns of their investment. One can estimate the returns based on their RD interest rates and tenure to fulfil their investment goals. A recurring deposit investment has a complex calculation that might be tough to understand. An RD interest calculator helps one calculate the returns before investing.
How to Use an Online RD Calculator?
Listed below are the steps that one should follow to calculate RD maturity quickly and easily:-
- Login to the website of your bank
- Enter the amount that one will invest monthly and the tenure in the RD calculator
- Click on the calculate button.
- They can now see the returns they will get for the investment, along with the interest percentage.
Benefits of an Online RD Calculator
An RD is a continual investment that provides one return at the end of their tenure. The calculation for a recurring deposit investment can be tricky for investors. Every quarter one recurring deposit interest rate will get compounded. An RD calculator consists of many variables to complete its calculation.
The Formula For Calculating RD Maturity
To calculate the maturity amount for a recurring deposit investment, one can use an RD calculator.
The formula for calculating RD maturity is:
A = P*(1+R/N)^(Nt)
Here is the denotation of each variable that comes in the formula for better understanding:
‘A’ is the maturity amount
‘P’ is the recurring deposit instalment for each month
‘N’ is the interest rate compounding factor (The number of quarters for which we calculate the interest)
‘R’ is the recurring deposit interest rate in percentage
‘t’ is the tenure that one chooses for their investment
Conclusion
Though their investment amount and tenure varies, the formula remains the same for all their recurring deposit maturity calculations. Thus, one can easily calculate the maturity amount for a particular tenure when entering all the desired values. Then, when one has different options to compare, they can choose the best investment option to suit their investment goal.
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