QUANT RD Calculator

The QUANT Recurring Deposit (RD) calculator helps in the computation of returns in a hassle-free manner within a few seconds. It is quite easy when compared to manual RD calculation as all you have to do is key in some details related to your RD on the calculator, and it reflects the amount it will accrue after maturity.

An RD is an investment instrument that helps the investor in saving their money on a regular monthly basis. Almost all the banks in our country offer RD accounts. RDs are considered to be a safe instrument and are favored by many investors as they inculcate a disciplined savings habit.

How Does The QUANT RD Calculator?

The calculator works based on the below formula.

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 deposit ₹32,000 every month in an RD scheme. The scheme is offering you an interest rate of 7.8% per annum. The term of the scheme is 5 years. Let's calculate your maturity amount.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 32,000 x [(1 + 7.8/400) x 5 - 1] / 1 - (1 + 7.8/400) (-⅓)
M = ₹23,51,077

So, if you make a monthly deposit of ₹32,000 in an RD scheme, offering an interest rate of 7.8% per annum for 5 years, you would earn a maturity amount of over ₹23.5 lakhs. The scheme will earn you an interest of ₹4,31,077.

How To Use The QUANT RD Calculator?

Investors can use the RD calculator to quickly calculate the returns on RD.

• The first step is to enter the monthly deposit amount you wish to invest
• The next step is to mention the interest rate of the RD
• The final step is to use the slider to enter the term of investment in months

The calculator will use the above details and show your total investment amount, the interest earned, and the maturity amount.

Example:

Ms. Uma is looking to deposit ₹8,000 every month in an RD scheme. The bank that is offering the scheme is providing an interest rate of 6.9% per annum. She is planning to choose a term of 10 years. Here's how much she will earn at the end of the tenure.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 8000 x [(1 + 6.9/400) x 10 - 1] / 1 - (1 + 6.9/400) (-⅓)
M = ₹13,81,971

So, if Ms. Uma deposits ₹8,000 every month in an RD scheme, providing an annual interest rate of 6.9% for a term of 10 years, she will earn a maturity amount of ₹13,81,971. The interest earned by the RD scheme will be ₹4,21,971.

Benefits Of Using The QUANT RD Calculator

Here is a list of advantages that you can avail by using an RD calculator.

• Calculating an estimate of the maturity value will help you figure out the amount of monthly installments you need to deposit to achieve your financial goals.
• Manually calculating the interest earned from an RD scheme can be tedious and time-consuming for an individual. However, the calculator can perform all such calculations in a couple of seconds.
• There is a possibility of making errors while manually calculating the maturity value of an RD investment. The calculator presents accurate results for you, considering you have entered all the details carefully.
• With an RD calculator, you can compare different interest rates of RD schemes offered by various banks and choose the one best suited to your financial needs.