Recurring Deposit Ladder Calculator
Start a new RD every few months and build a ladder for regular maturity and smart savings.
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Total Invested Amount: ₹—
Total Returns (Interest): ₹—
How to Use This Tool
To simulate a recurring deposit ladder, enter the fixed monthly deposit, the term (in months) of each RD, the time gap between new RDs, and the interest rate.
- Monthly Deposit Amount: Amount you will deposit every month in each RD.
- RD Term (Duration in Months): Total duration each RD stays active.
- Gap Between New RDs (in Months): Gap in months between starting each new RD.
- Annual Interest Rate (%): Expected annual rate at which RDs grow.
Maturity values assume monthly compounding on each recurring deposit.
RD Ladder Calculator FAQs
What is an RD Ladder strategy?
An RD Ladder strategy involves opening a new Recurring Deposit every few months instead of one large RD. This creates staggered maturity dates, giving you regular access to funds while still earning compound interest on each RD.
How is RD maturity value calculated?
RD maturity value is calculated using the recurring deposit formula: M = P × [((1 + r/n)^(nt) − 1) / (1 − (1 + r/n)^(−1/3))], where P is the monthly deposit, r is the annual interest rate, n is the compounding frequency, and t is the tenure in years.
What is the difference between RD Ladder and SIP?
RD Ladder uses bank Recurring Deposits with guaranteed interest rates and fixed maturity dates. SIP invests in mutual funds with market-linked returns. RD Ladder is lower risk with predictable returns; SIP has higher return potential with market risk.