Note: The variable RD calculator gives the total post-tax interest. I have assumed that only the variable payments are subject to a penalty. That is if a variable payment is not made before a certain date (reader Srinivas says it is 10th in his case) then interest on the variable payment for that month will not be paid.

There was an issue with interest calculation for each FY when the monthly payments become variable. So I had to remove the original download link. I am trying to resolve this.

For normal RD where the monthly payments are fixed you could use this Recurring deposit calculator published earlier. This gives the tax liability each FY for different types of compounding (annual, half-yearly, quarterly and monthly).

(total tax liability for multiple installments per month: fixed + variable)

Note: the above calculator assumes you make a fixed payment on the same day each month and variable investment (zero to anything subject to a max. defined by bank) on any day of the month (ie. two investments each month)

If your bank will permit only oneinvestment each month then use this:

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16 thoughts on “Calculator Update: Variable/flexible Recurring Deposit Calculator”

In RD/Flexible RD calculators amount will be returned at the end of the period. But in chits amount may received in the middle or beginning also. Then how to calculate return rate if amount received in the middle of the period and subscription is continued till the end. I hope I am clear. Please help.

For complex cash flows, XIRR may not give correct answer (for example I pay Rs. 100 over 6 months. I received Rs. 50 over 3 months. The next cash flow is 600-150. So rate of return will be negative).

I will be publishing another calculator on this soon.

You have given very vluable information regarding variable recurring deposit post tax liability. I request u to please let us know the variable recurring deposit formula or calculator who have opted for the savings who does not come under the tax bracket.i.e. non tax payable persons. looking forward for your updates. Thanks. Anuradha

Thank you for the quick response. 1) I request to help me, verify the Interest calculation and I feel the interest given under sl no 9 & 13 is not properly calculated by the bank.

2) In the previous mail you have provided the calculation sheet to calculate variable RD interests. Now can i know that is there any calculation sheet available with you to check quarterly interests being given by the bank.

I am reproducing the UCO Bank Passbook details for better clarity. This amount is from selling all my properties and hence i am very careful in my returns.

Request you to verify and help me to with calculation, if available with you.

Is there any idea on deposit period for ICICI iWish and how their interest calculations are done since they allow multiple deposit amounts per month instead of conventional V RD

how to calculate RATE OF INTEREST of recurring deposit.

Suppose I’m investing 2500 per month in recurring deposit account for 2 years with rate of interest 8% compounded quarterly. Now I have to find out MATURITY AMOUNT. For this i will use formula :

ACTUAL AMOUNT (MATURITY AMOUNT) = PRINCIPLE AMOUNT *( (1+RATE/100/4)^(4*2)-1)/(1-(1+RATE/100/4)^(-1/3))

ACTUAL AMOUNT (MATURITY AMOUNT) = PRINCIPLE AMOUNT *( (1+8/100/4)^(4*2)-1)/(1-(1+8/100/4)^(-1/3))

ACTUAL AMOUNT (MATURITY AMOUNT) = 65229/-

========================

Now I want to know the FORMULA OF HOW TO CALCULATE RATE OF INTEREST.

Suppose I’m investing 2500 per month in recurring deposit account interest compounded quarterly. My MATURITY AMOUNT IS 65229/-. But i don’t know what INTEREST RATE I HAVE GOT. I want to find out INTEREST RATE . WHAT FORMULA SHOULD I USE TO FIND OUT RATE OF INTEREST

In RD/Flexible RD calculators amount will be returned at the end of the period. But in chits amount may received in the middle or beginning also. Then how to calculate return rate if amount received in the middle of the period and subscription is continued till the end. I hope I am clear.

Please help.

Please this this XIRR calculator

http://freefincal.com/xirr-returns-calculator/

For complex cash flows, XIRR may not give correct answer (for example I pay Rs. 100 over 6 months. I received Rs. 50 over 3 months. The next cash flow is 600-150. So rate of return will be negative).

I will be publishing another calculator on this soon.

Pattu Sir,

May I know when you are going to publish calculator for complex cash flows as mentioned in the above comment?

Thank You

SIVA PRASAD

Dear Shiva, If you are not able to use the XIRR calculator mentioned above, please send me the cash flow details. I will make one for you.

Dear Sir,

Please find attached excel sheet for cash flows for 3 scenarios. Please tell how to calculate Annualised return for these.

Thanking You , Yours Faithfully, R Siva Prasad Aurangabad Mobile:8275043533

________________________________

I did not get the file. Please send it by email. I have sent you a mail.

Excellent Tool sir ji, will use this to cross check the interest paid by my bank on a recently closed flexi RD…. thank you

Thank you. Please let me know if the values match.

You have given very vluable information regarding variable recurring deposit post tax liability.

I request u to please let us know the variable recurring deposit formula or calculator who have opted for the savings who does not come under the tax bracket.i.e. non tax payable persons.

looking forward for your updates.

Thanks.

Anuradha

Thank you. Please download the above file and set the tax slab as zero. Since the investments are variable there is no fixed formula.

Thank you for the quick response.

1) I request to help me, verify the Interest calculation and I feel the interest given under sl no 9 & 13 is not properly calculated by the bank.

2) In the previous mail you have provided the calculation sheet to calculate variable RD interests. Now can i know that is there any calculation sheet available with you to check quarterly interests being given by the bank.

I am reproducing the UCO Bank Passbook details for better clarity. This amount is from selling all my properties and hence i am very careful in my returns.

Request you to verify and help me to with calculation, if available with you.

thank you,

Anuradha

Sl.No Date Deposits Balance

1 19-08-13 Deposit 100 100

2 04-09-13 Deposit 600000 600100

3 14-09-13 Deposit 200000 800100

4 14-09-13 Deposit 65000 865100

5 30-09-13 Interest 4965 870065

6 03-10-13 Deposit 100 870165

7 04-11-13 Deposit 100 870265

8 05-12-13 Deposit 100 870365

9 31-12-13 Interest 19193 889558

10 06-01-14 Deposit 100 889658

11 06-02-14 Deposit 100 889758

12 20-03-14 Deposit 100 889858

13 31-03-14 Interest 19196 909054

14 23-04-14 Deposit 100 909154

15 13-05-14 Deposit 100 909254

16 05-06-14 Deposit 100 909354

Rate of Interest 8.75

Quarterly Cumulative

Variable RD

Term 3 years

UCO BANK

please ignore the above post sent by me. Corrected details sent through email.

thank you

ANURADHA

Is there any idea on deposit period for ICICI iWish and how their interest calculations are done since they allow multiple deposit amounts per month instead of conventional V RD

how to calculate RATE OF INTEREST of recurring deposit.

Suppose I’m investing 2500 per month in recurring deposit account for 2 years with rate of interest 8% compounded quarterly. Now I have to find out MATURITY AMOUNT. For this i will use formula :

ACTUAL AMOUNT (MATURITY AMOUNT) = PRINCIPLE AMOUNT *( (1+RATE/100/4)^(4*2)-1)/(1-(1+RATE/100/4)^(-1/3))

ACTUAL AMOUNT (MATURITY AMOUNT) = PRINCIPLE AMOUNT *( (1+8/100/4)^(4*2)-1)/(1-(1+8/100/4)^(-1/3))

ACTUAL AMOUNT (MATURITY AMOUNT) = 65229/-

========================

Now I want to know the FORMULA OF HOW TO CALCULATE RATE OF INTEREST.

Suppose I’m investing 2500 per month in recurring deposit account interest compounded quarterly. My MATURITY AMOUNT IS 65229/-.

But i don’t know what INTEREST RATE I HAVE GOT. I want to find out INTEREST RATE . WHAT FORMULA SHOULD I USE TO FIND OUT RATE OF INTEREST

PLEASE REPLY.

Use Excels Goal seek function for this. Or do it by trial and error.