RD Calculator
Calculate Recurring Deposit maturity amount and total interest earned for monthly deposits. Free RD calculator for all Indian banks. No signup required.
What is RD Calculator?
The RD (Recurring Deposit) Calculator computes the maturity amount and interest earned when you deposit a fixed amount every month for a set period. RD is ideal for building savings discipline with small, regular contributions.
Is my financial data safe?
Absolutely. All calculations happen locally in your browser. No data is sent to any server. Your financial information never leaves your device.
How to Calculate Recurring Deposit Returns
- Enter your monthly deposit amount
- Enter the RD interest rate offered by your bank
- Enter the tenure in months
- Click Calculate to see total maturity amount and interest earned
How RD Calculator is Calculated
RD maturity uses quarterly compounding (standard for Indian banks): M = R × [(1+r)n − 1] / (1 − (1+r)−1/3), where R = monthly deposit, r = quarterly rate, n = number of quarters.
Worked Example
₹10,000/month for 5 years at 6.5%: Total deposits = ₹6,00,000. Interest earned = ₹1,12,432. Maturity = ₹7,12,432. Each monthly instalment earns interest for the remaining tenure.
Common Use Cases
- Building monthly saving habit
- Short-term goal saving
- Emergency fund building
- Alternative to lumpsum FD for salaried individuals
Common Mistakes to Avoid
- Missing a monthly instalment — banks charge a penalty of ₹1–2 per ₹100 per month for missed payments, and some may close the account.
- Expecting the same effective returns as an FD — RD earns less overall because later deposits earn interest for fewer periods.
- Not comparing RD rates with SIP mutual fund returns — for horizons over 5 years, SIPs in mutual funds typically outperform RDs.
- Ignoring TDS — RD interest is taxable just like FD interest if it crosses the ₹40,000 threshold.
Frequently Asked Questions
How is RD maturity calculated?
RD uses compound interest calculated quarterly: M = R × [(1+r)^n – 1] / (1 – (1+r)^(-1/3)), where R = monthly deposit, r = quarterly rate, n = number of quarters.
What is the difference between FD and RD?
FD requires a lump sum deposit once, while RD requires fixed monthly deposits over the tenure. RD is ideal for building a savings habit with regular income.
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Why You Need This Calculator
Recurring Deposits are India's simplest savings tool — deposit a fixed amount monthly and earn guaranteed interest. With over ₹15 lakh crore in RDs across banks and post offices, they are ideal for building disciplined savings habits. Post office RD rates (6.7%) currently beat most bank RDs, and the 5-year post office RD qualifies for 80C deduction.
Calculator Features
- Calculate RD maturity for any monthly deposit and tenure
- Bank vs Post Office rate comparison
- Quarterly compounding calculation
- TDS impact on returns
- Compare with SIP returns
- Pre-mature withdrawal penalty calculator
The Math Behind It
RD uses quarterly compounding: Maturity = Monthly Deposit × [(1+r/4)^(4×t) – 1] / [1 – (1+r/4)^(-1/3)], where r = annual rate, t = years.
Calculation Example
Monthly deposit ₹10,000 for 5 years at 7%: Total deposited = ₹6,00,000. Maturity value ≈ ₹7,25,653. Interest earned = ₹1,25,653.
Quick Reference
Recurring deposit maturity values
| Monthly Deposit | Rate | Tenure | Deposited | Maturity |
|---|---|---|---|---|
| ₹5,000 | 7.0% | 3 yrs | ₹1,80,000 | ₹2,00,573 |
| ₹10,000 | 7.0% | 5 yrs | ₹6,00,000 | ₹7,25,653 |
| ₹25,000 | 6.7% | 5 yrs | ₹15,00,000 | ₹17,88,042 |
Pro Tips & Expert Insights
- 💡 Post office 5-year RD qualifies for Section 80C deduction.
- 💡 Banks compound RD interest quarterly — this boosts returns slightly.
- 💡 Set up auto-debit to avoid missed installments (which attract penalties).
- 💡 Senior citizens get 0.5% higher rate at most banks.
- 💡 Compare RD vs SIP — SIP typically gives higher long-term returns but with risk.
Who Benefits From This?
First-time savers building discipline, conservative investors, parents saving for children, and anyone building an emergency fund.
📚 Complete Guide Available
Want to learn more? Read our comprehensive guide with detailed explanations, real-world examples, expert analysis, and actionable tips.
Read: Recurring Deposit Calculator: Monthly Savings with Guarantee…Disclaimer: This calculator provides estimates for informational purposes only. Actual outcomes may vary based on applicable rates, policies, and individual circumstances. Consult a qualified financial advisor or chartered accountant before making financial decisions. See our full Disclaimer.
Methodology: Formula based on standard financial calculation methods widely used in the banking industry. See our Editorial Policy for how we validate calculators.
Maintained by: Sagar Sahni, Calc Labz | Review: formula checks, worked examples, and periodic updates
Need a correction? Contact us with the calculator name, your inputs, and the issue you found.
Last updated: April 2026