RD Calculator

Calculate your Recurring Deposit (RD) maturity amount, total deposits, interest earned and investment growth with different compounding frequencies and flexible deposit tenures.

How the RD Calculator Works

Enter Monthly Deposit

Enter your monthly deposit amount, annual interest rate and the duration of your recurring deposit.

Interest Calculation

The calculator estimates your RD maturity value by applying the selected compounding frequency to your recurring monthly deposits.

View Maturity Value

Instantly view your total deposits, interest earned, maturity amount and overall recurring deposit growth.

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a savings scheme offered by banks and financial institutions that allows you to deposit a fixed amount every month for a chosen period. The deposited amount earns interest at a predetermined rate, helping you build savings gradually while enjoying predictable returns.

💰 Save Every Month

Recurring Deposits encourage disciplined monthly savings without requiring a large lump sum investment.

📈 Guaranteed Returns

Your deposits earn a fixed rate of interest, making RDs a reliable option for conservative investors.

Recurring Deposit Formula

M = R × [(1 + i)n − 1] ÷ i

Where M is the maturity amount, R is the monthly deposit, i is the periodic interest rate and n is the total number of deposit periods.

Interest Earned

Interest = Maturity Amount − Total Deposits

How RD Interest is Calculated

Unlike a Fixed Deposit where the entire amount is invested on day one, each monthly RD installment earns interest only from the date it is deposited until maturity. Earlier deposits earn interest for a longer period than later deposits.

📅 Monthly deposits are invested regularly.
📈 Each installment earns compound interest.
🏆 Earlier deposits earn more interest.

RD vs FD

Feature Recurring Deposit Fixed Deposit
Investment Monthly Deposits One-Time Deposit
Best For Regular Saving Lump Sum Investment
Flexibility Monthly Contributions Single Investment
Ideal Users Salaried Individuals Investors with Available Funds

RD vs SIP

Recurring Deposit (RD)
  • Guaranteed returns.
  • Lower investment risk.
  • Fixed interest rate.
  • Suitable for conservative investors.
Systematic Investment Plan (SIP)
  • Market-linked returns.
  • Higher long-term growth potential.
  • Returns are not guaranteed.
  • Suitable for long-term wealth creation.

Benefits of Recurring Deposits

✅ Encourages disciplined monthly savings.
✅ Guaranteed and predictable returns.
✅ Low investment risk.
✅ Affordable monthly contributions.
✅ Flexible investment tenure.
✅ Helps achieve short and medium-term financial goals.
✅ Available at most banks.
✅ Easy to open and manage.

Tax on RD Interest

Interest earned on Recurring Deposits may be taxable depending on your country's tax regulations and your overall taxable income. Some financial institutions may also deduct tax at source (TDS) where applicable. Always refer to current tax rules or consult a qualified tax advisor.

RD Calculation Example

Suppose you deposit ₹5,000 every month for 5 years at an annual interest rate of 7.5%, compounded quarterly.

  • Monthly Deposit: ₹5,000
  • Deposit Period: 5 Years
  • Interest Rate: 7.5% per year
  • Compounding: Quarterly
  • The calculator estimates your total deposits, interest earned and maturity amount automatically.

About the RD Calculator

The Recurring Deposit (RD) Calculator helps estimate the maturity amount, total deposits and interest earned from your recurring monthly investments. Simply enter your monthly deposit, annual interest rate, investment tenure and compounding frequency to instantly calculate your expected returns.

Recurring Deposits are one of the most popular savings options for individuals who want to build wealth through disciplined monthly investments while enjoying stable and predictable returns.

Smart RD Saving Tips

💰 Start your RD as early as possible to maximize interest earnings.
📅 Deposit every installment on time to avoid penalties.
📈 Compare RD interest rates offered by different banks.
🎯 Match your RD tenure with your financial goals.
🏦 Consider higher interest rates available for senior citizens.
💹 Increase your monthly savings whenever your income increases.
📊 Review tax implications before investing large amounts.
🚀 Combine RDs with long-term investments for a balanced portfolio.

Disclaimer

This RD Calculator provides estimated maturity values based on the information you enter. Actual returns may vary depending on bank policies, compounding methods, taxes, premature closure rules and applicable regulations. This calculator is intended for educational and financial planning purposes only.

Frequently Asked Questions

1. What is a Recurring Deposit (RD)?

A Recurring Deposit is a savings scheme that allows you to deposit a fixed amount every month and earn interest until maturity.

2. How is the RD maturity amount calculated?

The maturity amount depends on your monthly deposit, annual interest rate, investment tenure and compounding frequency.

3. Can I calculate RD returns for months?

Yes. This calculator supports both months and years as the investment tenure.

4. Which compounding frequency is commonly used?

Quarterly compounding is commonly used by many banks, although it can vary depending on the financial institution.

5. Is RD interest taxable?

Interest earned on Recurring Deposits may be taxable depending on your country's tax laws and your total taxable income.

6. Can I withdraw my RD before maturity?

Many banks allow premature closure of RDs, but penalties or revised interest rates may apply.

7. Is RD better than a savings account?

An RD generally offers higher interest rates than a regular savings account, making it suitable for disciplined savings.

8. Is this RD Calculator free?

Yes. It is completely free and works on desktop, tablet and mobile devices.

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