Reader Pattu had developed a great retirement calculator and shared it for free here on OneMint about two years ago, and several people have downloaded and benefitted from that calculator.
Since then he has developed a few other calculators, and the latest is an Excel based RD calculator. You can download it here.
What I liked most about this calculator is that it calculates taxes also, and in that respect it is a lot more useful than most other online RD calculators.
Of course, being an Excel RD calculator also has the added advantage of not needing an internet connection, and then it is faster as well since you don’t have to click a button to recalculate amounts.
Taxes on Recurring Deposits
A quick word on taxes on RDs – RDs don’t attract TDS, however that doesn’t mean they are tax free. You are supposed to pay tax on RD interest just like you would pay tax on other interest.
To the best of my understanding, the proper way of doing this is to declare the interest that accrues to you every year, and then pay tax on it regardless of when your RD matures. For details read my  post on taxes and interest rates on recurring deposits.
Advantage and Disadvantage of Recurring Deposits
When I looked at RD rates some time ago I noticed that banks don’t give you their maximum interest rates as RD rates, so if a bank gives 9% on a 400 day deposit, and 8% on a 1 year deposit then you are likely to get 8% on a 12 month RD, so in that sense you never get the best rate on a RD.
However, RDs are great when you want to get in the habit of saving regularly, and in this case even small sums add up. Most of us talk about how compounding greatly enhances returns, and while that is true, I feel that we don’t realize enough how quickly time passes.
What seems like just Rs. 10,000 a month now, will amount to a little over Rs. 4 lakhs in 3 years at 8%, and 3 years will also pass in the blink of an eye.
And then you will thank yourself for putting the little money away every month. This I say with personal experience, and I think everyone should get in the habit of forcing themselves to save at least a little every month and with time all of this adds up.
This great Excel RD Calculator will help you in getting an exact number on how much you will get in a few years time, and is a very useful tool. Please download it and keep it with you as a ready reference.
Please post any feedback, or report any bugs that you may have in comments – it is greatly appreciated.
Finally, a big thank you to Pattu for letting me share this great tool and I certainly do appreciate the hard work and skills that have gone into making it and I am sure other readers do too!
Dear sir/mam
How to reduce the Rd amount I pay rs.5000/- monthly but I am not able to pay now. Please help me
How to reduce the Rd amount
downloaded the file, but not able to open it. Kindly guide.
This is an excellent RD calculator I have ever seen. Awesome ! The great stuff is – it gives the exact interest accrued for each financial year (pre/post tax).
Thanks mate!
i cant downlode this calculate software plz how i can do
Thanks for your interest. The download link is found just below the second para in the post. Alternatively you can also download it from my site by clicking on my name.
Thanks. It is a very useful and comprehensive tool to calculate RD interest. I am searching a similar tool to calculate FD interest i e financial year wise.
Thanks
Anshu
Anshu,
Thanks. I will be posting one in my blog in a few days
Thanks, I am waiting for your post.
Anshu
Anshu,
It will take a week or more to get to my blog since I have scheduled posts. Send me a mail to
pattu [AT] iitm.ac.in
and I will send it to you
Very good RD calc to find the actual returns after the tax calculation. One more suggestion from my end is, please also show how much % of profit we are getting at final after post tax calculation,.
Thanks. % profit makes sense to me for lump sum investments like FD
Here investments are staggered and % profit can be misleading since the value of the first installment can be very different from the last due to inflation.
CAGR is the only correct indicator.
Good calculator even seen for recurring deposit.
As far taxation is concerned I use following process:
-I demand interest paid certificate from bank for the financial year:This certificate carries detailed break up of interest paid in the financial year for each fixed deposit,Recurring deposit account and saving account.It avoids any approximations and can keep for future reference also.
-Add this interest income as income from other sources.
-Calculate total income of the year.
-Calculate and pay tax (subtracting tax deducted at source ).
Thanks Paresh.
Thanks for the prompt reply.I have Excel 2007.To open this file I used Firefox plat form.When I clicked on the link provided I continue to get the following message.
WINDOWS CANNOT OPEN THIS FILE.TO OPEN THIS FILE WINDOWS NEEDS TO KNOW WHAT PROGRAM CREATED IT etc etc.
What do I next please?
That is unusual! If Office is installed properly Firefox will auto-detect the file type. Send me an email to get the file:
pattu[AT]iitm.ac.in
Replace [AT] with @
Thank You.But,as usual Manshu solved the problem.He sent me the file in XLS format.I was able to download and save it.Thanks again.
I was not able to download the file.Can you please let me know persons like me who are not computer savy the steps required to open the file?While downloading I got a message What do you want to do with this file and gave me two options.I chose the File option.Nothing happened.
Dear Ramamurthy,
The download link works fine. Once you click on it you could choose ‘open’ or save.
Either way you need Excel 2007 or above to use.
If you a lower version of the Excel file then it will not work. Send me an email and I send you a compatible file.
Not able to ope with spreadsheet. Will you email me at [email protected]
Thanks Furqan. The max. tenure allowed for an RD is 10 years. Hence the 120 months. Will mention this in the file.
I was inspired to make this calc. after reading Manshu’s post on calculating RD interest.
Dear Pattu,
This is the most comrehensive RD Calc that I have come across so far.
Appreciate youir efforts. It seems that this Calc can clculate max 120 months.
Please mention max period in notes as you have mentioned min period.
Appreciate your efforts – keep up the good work 🙂