HDFC RD Calculator
The HDFC Recurring Deposit (RD) calculator can help you with your RD interest calculations. Investors can plan their finances more clearly if they use an RD calculator because they will know the exact maturity value of their RD investment.
An RD is an investment tool that allows investors to make regular monthly investments and save money over a specified period. Investors can choose the tenure of the deposit and the monthly payment amount based on their convenience. RD schemes are generally more flexible than fixed deposit schemes.
How Does The HDFC RD Calculator Work?
The RD calculator uses the below formula to calculate your maturity amount.
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 planning to save ₹22,000 every month in an RD scheme. The interest rate of the scheme is 6.9% per annum. The tenure of the RD is 2.5 years. When we calculate the maturity amount, we get:
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 22,000 x [(1 + 6.9/400) x 2.5 - 1] / 1 - (1 + 6.9/400) (-⅓)
M = ₹7,21,853
So, if put ₹22,000 every month in an RD scheme, earning an annual interest rate of 6.9% for 2.5 years, you will earn a maturity amount of over ₹7.2 lakhs. The interest earned by the scheme will be ₹61,853.
How To Use The HDFC RD Calculator?
To use the RD calculator, investors must take the following steps.
- Enter the amount you want to invest every month
- Key in the investment period in years
- Mention the RD's interest rate
Once the details are entered, the calculator will show you the maturity amount and interest earned instantly.
Example:
Mr. Eddy is looking to invest ₹40,000 every month in an RD scheme. The scheme is offering him an interest rate of 8% every year. The tenure of the scheme is 7 years. Here's how much he will make at the end of the tenure.
M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 40,000 x [(1 + 8/400) x 7 - 1] / 1 - (1 + 8/400) (-⅓)
M = ₹45,05,297
So, if Mr. Eddy invests ₹40,000 every month in an RD scheme, offering an interest rate of 8% annually for a tenure of 7 years, the scheme would earn him a maturity amount of over ₹45 lakhs. The interest earned by Mr.Eddy's RD scheme is ₹11,45,297.
Benefits Of Using The HDFC RD Calculator
Below are the benefits of using an RD calculator.
- The HDFC RD calculator is very simple to use. All you need to do is enter the values for the monthly deposit, the RD interest rate, and the number of years to invest.
- The RD calculator can help investors save time. It saves the investors from having to perform manual calculations.
- The calculator allows investors to plan their future with great precision.
- The calculator shows accurate results if the inputs are correctly entered.