What is an RD calculator?
An RD calculator is a free online tool that estimates how much a recurring deposit will grow to by the end of a chosen tenure. You enter your fixed monthly deposit amount, the annual interest rate, and the number of months. The tool instantly returns the total amount deposited, the interest earned, and the final maturity value.
Because RD interest is compounded quarterly in India, working out the exact figure by hand involves a moderately complex formula. The Chola Securities RD calculator handles this automatically, saving time and eliminating calculation errors.
How does the RD calculator work?
Interest on a recurring deposit in India is compounded quarterly, as per standard banking norms. Each monthly instalment earns interest for the remaining portion of the tenure, and the calculator sums the result across all instalments.
Maturity Value = R × ((1 + i)^n − 1) / (1 − (1 + i)^(-1/3))
where M is the maturity amount, R is the fixed monthly deposit, i is the quarterly interest rate (annual rate ÷ 400), and n is the number of quarters in the tenure.
Worked example: Deposit ₹5,000 every month for 12 months at 7% per annum, compounded quarterly. The total amount deposited over the tenure is ₹60,000. Applying the formula, the maturity value works out to approximately ₹62,313, of which ₹2,313 is interest earned through quarterly compounding.
Note: the calculator assumes the deposit runs to its full term without any break or premature closure. Actual maturity values may vary if the bank applies a different compounding convention. Treat the output as an indicative estimate rather than a guaranteed figure.
How do I use Chola Securities' RD calculator?
Using the calculator takes three steps.
- Enter your monthly deposit — the fixed amount you plan to set aside each month.
- Enter the annual interest rate — the rate offered on the recurring deposit by your bank.
- Set the tenure in months — the period for which you plan to keep the deposit running.
The result updates instantly. Adjust any input to see how a higher rate, a larger deposit, or a longer tenure changes the maturity value.
Why use the RD calculator?
- Plan your savings toward a specific goal, such as a fee payment or an emergency fund.
- Compare how different tenures and rates affect the final corpus before opening the deposit.
- Avoid manual errors by letting the tool handle quarterly compounding automatically.
- Decide in seconds whether an RD suits your monthly budget and savings target.