DHFL RD Calculator
The DHFL Recurring Deposit (RD) calculator is an online tool that allows you to determine the exact returns from your chosen RD investment. Manual calculation of returns can be a time-consuming and hectic process. So, the calculator can help you get an accurate maturity amount in a few seconds.
RDs are one of the safest forms of investments available for investors in India. They are similar to fixed deposits. The only major difference between RDs and FDs is that, in FDs, you would deposit the entirety of your funds in one go. However, RDs allow you to deposit smaller amounts through monthly deposits.
How Does The DHFL Calculator Work?
The formula used by the calculator to calculate the maturity amount is as follows.
Where,
M is the Maturity value of the RD
R is the monthly installment credited in the RD
n is the number of quarters in the total tenure
i is the rate of interest divided by 400
Example:
You are thinking about depositing ₹12,000 every month in an RD scheme. The deposit term is 6 years. The scheme is offering you an interest rate of 6.85% per annum. Let's use the calculator formula to calculate your maturity amount.
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 12,000 x [(1 + 6.85/400) x 6 - 1] / 1 - (1 + 6.85/400) (-⅓)
M = ₹10,69,634
So, if you deposit ₹12,000 every month in an RD scheme for a tenure of 6 years, earning an interest rate of 6.85% per annum, you would earn a maturity amount of over ₹10.69 lakhs. The interest earned by the scheme will be over ₹2 lakhs.
How To Use The DHFL RD Calculator?
You need to enter three specific details regarding your RD scheme to use the RD calculator. They are:
- The monthly deposit amount - This refers to the amount you have decided to deposit every month in the RD account
- Deposit term - The period you are about to deposit the monthly amounts is the deposit term
- Interest rate - This refers to the interest rate per year that a particular RD scheme is liable to earn
Once the above details are entered, the calculator will show you the total investment amount, the interest earned, and the maturity amount.
Example:
Ms. Tammy is planning to deposit ₹24,000 every month into an RD scheme. The tenure of the deposit is 8 years. The interest rate of the scheme is 7.25% per annum. By putting the values in the calculator formula, we get:
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 24,000 x [(1 + 7.25/400) x 8 - 1] / 1 - (1 + 7.25/400) (-⅓)
M = ₹31,22,929
So, if Ms. Tammy deposits ₹24,000 every month, offering an interest rate of 7.25% per annum for a tenure of 8 years, she would earn a maturity amount of over ₹31.23 lakhs. The interest earned by the scheme will be over ₹8.18 lakhs.
Benefits Of Using The DHFL RD Calculator
An RD calculator is a highly useful tool for investors. Here are some reasons why you must use an RD calculator.
- The DHFL RD calculator provides accurate results every single time. However, manual calculations do not offer such guarantees.
- Doing the calculations manually is a time-consuming process. On the other hand, the calculator can give the results instantaneously
- Different banks provide varying interest rates on their RDs. The calculator can help you compare different schemes and choose the best-suited option.