SBI RD Calculator

The SBI Recurring Deposit (RD) calculator is a great financial tool for anyone who wants to how much maturity amount they will make through their RD investments. The calculator eliminates complicated calculations and shows you the results in a matter of seconds.

Most banks and non-banking financial companies (NBFCs) in India offer recurring deposit accounts. The tenure of the RDs ranges from six months to ten years. RD schemes aim to inculcate a regular habit of saving among the public. The interest rate offered by RDs is equal to that offered by Fixed Deposits and is hence higher than any other savings scheme.

How Does The SBI RD Calculator Work?

To find out the maturity amount, the calculator uses 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 invest ₹15,000 every month in an RD. The tenure of the RD is 3 years and the interest rate of the RD is 7.5% per annum. By putting the values in the calculator formula, we get:

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 15,000 x [(1 + 7.5/400) x 3 - 1] / 1 - (1 + 7.5/400) (-⅓)
M = ₹6,06,795

So, if you invest ₹15,000 every month for 3 years, with the RD earning you an interest rate of 7.5% per annum, you would make a maturity amount of over ₹6 lakhs. You will earn an interest of ₹66,795 from your investment.

How To Use The SBI RD Calculator?

You can use the RD calculator in a few simple steps.

• Enter the monthly amount you would like to invest.
• Type in the tenure of your recurring deposit.
• Key in the interest rate of the RD.

The calculator will show you the maturity amount and the interest earned in a few seconds.

Example:

Ms. Cynthia invested ₹35,000 every month in an RD for 2 years. The interest rate of the RD is 6.8% per annum. Let's calculate her maturity amount.

M =R[(1+i) n - 1]/1-(1+i) (-1/3)
M = 35,000 x [(1 + 6.8/400) x 2 - 1] / 1 - (1 + 6.8/400) (-⅓)
M = ₹9,01,803

So, if Ms. Cynthia invests ₹35,000 every month in an RD, earning her an interest rate of 6.8% for 2 years, she will earn a maturity amount of over ₹9 lakhs. Her interest amount would be ₹61,803.

Benefits Of Using The SBI RD Calculator

Using an RD calculator comes with several advantages. We have mentioned a few of them below.

• The SBI RD calculator can help you see how much your RD investments can help you make in the future. This can enable you to see whether your investments are enough to help you achieve your goals.
• The RD calculator eliminates the need to perform complex calculations on your own.
• Doing the RD calculation by yourself may lead to errors. However, the calculator can help you get accurate results every single time.
• The calculator shows how much investment you need to accumulate a certain maturity amount. This helps in planning your monthly finances better.