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RD Calculator

RD Details

₹100₹1,00,000
1%12%
months
6 months10 years

Maturity Summary

Maturity Amount₹1,29,846
Deposited
Interest

Total Deposited

₹1,20,000

Total Interest

₹9,846

Maturity Amount

₹1,29,846

Effective Return

8.21%

What is RD Calculator, and How Does it Help You

Recurring Deposits (RDs) are a structured way to save money regularly every month while earning higher interest rates similar to fixed deposits. RDs are ideal for individuals who want to build a savings habit but don't have a large lump-sum amount to invest upfront in an FD.

The RD Calculator helps you estimate the maturity value and total interest earned on your monthly deposits. It applies quarterly compounding, which is the standard banking practice for recurring deposits.

Disciplined Monthly Planning

Calculate how small, regular monthly deposits grow into a substantial corpus over time.

Quarterly Compounding

Applies the quarterly compounding formula used by post offices and commercial banks.

Flexible Tenure Matching

Simulate returns for tenures ranging from 6 months up to 10 years.

How Does the RD Calculator Work?

The calculator uses the compound interest annuity formula, compounding monthly deposits quarterly over the tenure.

M = P * ((1 + r/n)^(nt) - 1) / (1 - (1 + r/n)^(-1/3))

M: Maturity value of the recurring deposit
P: Monthly installment amount
r: Annual interest rate (as a decimal)
n: Compounding frequency per year (n = 4 for quarterly)
t: Total tenure of the RD in years

If you deposit ₹5,000 monthly in an RD at an interest rate of 6.8% p.a. for a tenure of 5 years (60 months), the calculator computes: Maturity Value = ₹3,56,812. Your total contribution is ₹3,00,000, and the interest earned is ₹56,812.

How to Use RD Calculator

Using the RD Calculator is extremely simple and takes just a few seconds. Follow these steps:

1

Enter Monthly Deposit

Set the amount you wish to save every month using the slider or input box.

2

Set Interest Rate

Input the annual interest rate offered by the bank for your chosen tenure.

3

Select RD Tenure

Choose the duration of the RD (in months or years) to calculate the maturity amount.

Advantages of Using RD Calculator

✓ Build Monthly Savings

Develop a disciplined savings habit by committing to small monthly contributions.

✓ Guaranteed Returns

Know the exact maturity amount in advance, unaffected by stock market volatility.

✓ Low Entry Barrier

Start saving with as little as ₹100 per month, making it accessible to everyone.

✓ Loan Facility

Most banks allow you to borrow up to 90% of your RD balance as a loan in emergencies.

Frequently Asked Questions

Recurring Deposit (RD) is a savings scheme where you deposit a fixed amount every month for a chosen tenure (6 months to 10 years). The bank pays interest on your deposits, compounded quarterly. At maturity, you receive all your deposits plus accumulated interest. RD helps build savings discipline with guaranteed returns.
RD interest is compounded quarterly. Each monthly deposit earns interest for the remaining period until maturity. The calculation considers quarterly compounding where each deposit earns compound interest based on how many quarters remain. This is why the maturity amount is higher than simple interest calculation.
Most banks allow RD starting from ₹100 to ₹500 per month. Post Office RD minimum is ₹100. There is usually no maximum limit, though some banks may have caps. You can choose any amount that fits your budget and increase it in subsequent RDs.
Missing RD installments leads to: (1) Penalty typically ₹1-2 per ₹100 per month delayed, (2) After 4-6 consecutive defaults, RD may be converted to FD at lower rate, (3) Some banks allow 1-2 month grace period. Set up auto-debit to avoid missing payments.
Yes, premature withdrawal is allowed but with consequences: (1) Interest rate is reduced by 1-2%, (2) Penalty may be charged, (3) You get the reduced amount based on actual tenure. Some banks don't allow withdrawal before minimum period (usually 3-6 months). Loan against RD is a better option to avoid breaking it.
Yes, RD interest is taxable as "Income from Other Sources" at your slab rate. TDS is deducted at 10% if total interest from the bank exceeds ₹40,000/year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your income is below taxable limit.
FD is better if you have lump sum to invest. RD is better if you want to save from monthly income. FD typically offers slightly higher interest rates. RD builds savings discipline. For same total investment, FD earns more interest as entire amount is deposited upfront.
RD: Guaranteed returns, very safe, ~6-7% returns, ideal for short-term goals (1-3 years). SIP: Market-linked, higher risk, potentially ~12-15% returns, ideal for long-term goals (5+ years). Choose RD for capital protection, SIP for wealth creation.
Maximum RD tenure varies: Most banks offer up to 10 years, Post Office RD is 5 years (renewable), Some banks limit to 5 years. Longer tenures earn more interest but lock your money. Consider your financial goals when choosing tenure.
Yes, banks offer loans up to 80-90% of RD value at interest rates 1-2% above RD rate. Benefits: (1) RD continues earning interest, (2) Quick processing, (3) Lower rates than personal loans, (4) No need to break RD. Useful for emergencies without losing RD benefits.
Yes, most banks offer 0.25% to 0.50% additional interest to senior citizens (60+ years) on RD. Some banks may not offer this benefit on RD (only on FD). Check with your bank for senior citizen RD rates and benefits.
Generally, you cannot change the RD amount during the tenure. The monthly deposit is fixed when you open the account. To invest more, you need to open a new RD with higher amount. Some flexi-RD products allow variable deposits, but they're not commonly available.