RD Calculator
Calculate your recurring deposit maturity amount and interest earned online, free and instantly. Enter your monthly deposit, interest rate and tenure to see exactly how much your monthly savings will grow.
Recurring Deposit Calculator
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Start InvestingWhat is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a popular savings option offered by banks and financial institutions. It allows you to invest a fixed amount every month for a chosen tenure. At maturity, you receive the total deposits along with the interest earned.
RDs are ideal for individuals who want a disciplined saving habit withguaranteed returns and low risk, making them one of the safest investment choices.
What is a Recurring Deposit Calculator?
A Recurring Deposit Calculator is an easy-to-use online tool that helps you quickly estimate the maturity amount and interest earned on your RD. By entering your monthly deposit, interest rate, and tenure, you get accurate results instantly—without manual calculations.
This helps you plan your savings better and compare RD options across banks.
How Does the RD Calculator Work?
The calculator uses the compound interest formula to calculate the maturity amount of an RD:
Where:
- A = Maturity amount
- P = Monthly deposit
- r = Annual interest rate (in decimal)
- n = Number of compounding periods per year
- t = Tenure (in years)
Example Calculation
Let’s say you invest ₹5,000 per month for 5 years at an interest rate of 6% per annum. Here is what the RD calculator shows:
Benefits of Using an RD Calculator
- Quick & Accurate – No manual effort, get exact results in seconds.
- Plan Your Goals – Adjust deposit, tenure, and rate to meet your savings target.
- Compare Options – Check RD schemes from different banks and pick the best one.
- Transparent Results – See a clear breakup of your deposits vs. interest earned.
- User-Friendly – Simple inputs, instant results.
Key Features of Recurring Deposits
- Guaranteed Returns – Fixed interest throughout the tenure.
- Flexible Tenures – Choose between 6 months to 10 years.
- Affordable Investment – Start small with low monthly deposits.
- Loan Facility – Avail a loan against your RD if needed.
- Premature Withdrawal – Allowed with penalties.
Factors Affecting RD Returns
- Monthly Deposit Amount – Higher deposits mean higher maturity.
- Interest Rate – Directly impacts your returns.
- Tenure – Longer tenure results in more compounding.
- Compounding Frequency – More frequent compounding increases returns.
- Taxation – Interest is taxable as per your income slab.
Types of Recurring Deposits
- Regular RD – Standard monthly deposit plan.
- Flexible RD – Deposit amounts can vary within limits.
- Senior Citizen RD – Higher interest rates for senior citizens.
- NRI RD – Special schemes for NRIs (NRE/NRO accounts).
- Tax-Saving RD – Rare schemes with tax-saving benefits.
Pros & Cons of Recurring Deposits
- Safe & guaranteed returns
- Regular monthly savings habit
- Suitable for all income groups
- Loan facility available
- Flexible tenure options
- Lower returns vs. mutual funds/stocks
- Interest is taxable
- Penalties for premature withdrawal
- Fixed monthly commitment
- Inflation may reduce real returns
RD vs FD – Key Difference
| Feature | Recurring Deposits (RD) | Fixed Deposits (FD) |
|---|---|---|
| Investment Method | Monthly deposits | One-time lump sum deposit |
| Interest Rate | Similar to FD | Similar to RD |
| Liquidity | Premature withdrawal allowed | Premature withdrawal allowed |
| Best for | Small, regular savers | Investors with lump sum funds |
Frequently Asked Questions
An RD Calculator is a free online tool that estimates the maturity amount and total interest earned on your recurring deposit. Enter your monthly deposit, interest rate and tenure, and it instantly shows how much your monthly savings will grow.
It uses the compound interest formula for a series of monthly deposits: A = P × ((1 + r/n)^(n×t) − 1) / ((1 + r/n) − 1), where P is the monthly deposit, r the annual interest rate, n the compounding frequency and t the tenure in years. Most banks compound RD interest quarterly.
Most banks let you open an RD with as little as ₹100 per month. Tenures typically range from 6 months to 10 years, and the interest rate is fixed for the entire term when you open the deposit.
Yes, RD interest is fully taxable at your income tax slab, and banks deduct TDS if total interest crosses the annual threshold. Unlike tax-saving FDs, regular RDs offer no Section 80C deduction.
Yes, premature closure is allowed, but banks usually pay a lower interest rate for the actual period held plus a small penalty. Partial withdrawals are generally not allowed, though you can take a loan against the RD balance.
Banks may charge a small penalty for missed installments, and repeated defaults can lead to the RD being closed early. If your income is irregular, a flexible RD or a mutual fund SIP (which lets you pause without penalty) may suit you better.
An RD gives guaranteed returns (typically 6–7.5%) with zero market risk, making it good for short-term goals. A mutual fund SIP is market-linked and has historically delivered higher long-term returns (10–14% in equity funds) with flexibility to pause or change the amount. For goals beyond 5 years, SIPs usually build more wealth.
In an FD you invest one lump sum at the start; in an RD you deposit a fixed amount every month. Interest rates are similar, so FDs suit those who already have the money, while RDs suit those building savings from monthly income.