Enter monthly deposit, tenure, interest rate, and compounding frequency, then click "Calculate RD".
Example: ₹5,000/month for 5 years at 7% quarterly → ~₹3,59,000 maturity, ₹59,000 interest
The RD Calculator (Recurring Deposit Calculator) helps you estimate the maturity amount of your monthly recurring deposit. RDs are popular savings instruments offered by banks where you deposit a fixed amount each month and earn compound interest (typically compounded quarterly). This recurring deposit calculator shows your total deposited amount, interest earned, and final maturity value. It works with any currency – select yours from the dropdown.
Recurring Deposit Formula
M = P × ((1 + r)^n - 1)/r × (1 + r)
Where P = monthly deposit, r = monthly interest rate, n = total number of months.
For example, depositing ₹5,000 per month for 5 years at 7% annual interest (compounded quarterly) yields approximately ₹3,59,000 at maturity. Total deposited is ₹3,00,000, so you earn ₹59,000 in interest. RD is a low-risk, disciplined saving method ideal for short to medium-term goals.
Applications
Short-term goal saving: Down payment, vacation, wedding fund.
Emergency fund building: Regular savings with guaranteed returns.
RD is for regular monthly savers – you build a corpus over time. FD (Fixed Deposit) requires a lump sum upfront. If you have a lump sum, FD typically gives slightly higher returns because the entire amount earns interest from day one. For monthly savers, RD is the right choice.
Use our FD calculator for lump sum investments and SIP calculator for mutual fund monthly investments.
How Compounding Frequency Affects RD Returns
Frequency
Maturity (₹5k/m, 5y, 7%)
Monthly
₹3,60,982
Quarterly
₹3,59,456
Half-Yearly
₹3,56,123
Yearly
₹3,50,789
Factors to Consider Before Opening an RD
Interest rate: Compare rates across banks (small finance banks often offer higher rates).
Tenure: Common tenures range from 6 months to 10 years.
Premature withdrawal penalty: Usually 1% lower interest.
Taxation: Interest is taxable; TDS applies if interest exceeds threshold.
Common RD Mistakes
Missing monthly deposits: Most banks allow a grace period, but repeated defaults may reduce interest.
Not comparing rates: Even a 0.5% higher rate can add thousands over long tenures.
Ignoring tax implications: Factor in TDS when calculating post-tax returns.
RD vs. SIP – Which One to Choose?
RD is guaranteed returns (low risk) – suitable for short-term goals (<5 years) and conservative investors. SIP (Systematic Investment Plan) in mutual funds offers potentially higher returns (10-12%) but with market risk. For long-term goals (10+ years), SIP is better; for short-term safety, RD is ideal.
Use this RD calculator to plan your monthly savings. Bookmark it to compare different tenures and interest rates.
Step‑by‑Step Manual Example
RD: ₹5,000/month for 5 years at 7% annual interest (compounded quarterly)
Frequently Asked Questions about Recurring Deposits
What is a Recurring Deposit (RD)?
An RD is a savings scheme where you deposit a fixed amount every month for a predetermined period. At maturity, you receive the total deposits plus interest compounded at regular intervals (usually quarterly).
How is RD interest calculated?
Interest is compounded quarterly (typically) on the balance. Each monthly deposit earns interest for the remaining tenure. Our calculator uses monthly compounding for simplicity, which closely matches bank calculations.
Is RD safe?
Yes, bank RDs are insured (e.g., FDIC in US, DICGC in India up to certain limits) and offer guaranteed returns, making them very safe.
Can I withdraw RD before maturity?
Yes, but banks charge a penalty (usually 1% lower interest). Use the calculator with the reduced rate to estimate premature withdrawal value.