Finance

RD Calculator

A Recurring Deposit calculator that projects the maturity value of fixed monthly deposits at a given interest rate and tenure. See total invested vs interest earned at a glance.

Monthly deposit (₹)

Annual interest rate (%)

Tenure (months)

Maturity amount

₹3,65,257

Total invested

₹3,00,000

Interest earned

₹65,257

InvestedInterest

Method

How this calculator works

Each monthly RD deposit earns compound interest from the month of deposit until maturity. Earlier deposits earn more interest because they stay invested longer.

Maturity = Σ [P × (1 + r/n)^(n × t_i)]

P = Monthly deposit
r = Annual rate (decimal)
n = 4 (quarterly compounding)
t_i = remaining time for deposit i (in years)

Enter the monthly deposit amount.
Enter the annual interest rate.
Set the tenure in months.
The calculator sums compound interest on each monthly deposit for its remaining tenure.
Results show maturity amount, total invested, and total interest earned.

Examples

Worked examples

Real numbers, end-to-end results.

₹5,000/month · 7% · 5 years

Maturity ₹3,65,257 · Interest ₹65,257

Standard post-office/bank RD scenario.

₹10,000/month · 7.5% · 3 years

Maturity ₹4,04,720 · Interest ₹44,720

Higher monthly contribution, shorter tenure.

₹2,000/month · 6.5% · 10 years

Maturity ₹3,40,812 · Interest ₹1,00,812

Long-term wealth building with modest contributions.

Use cases

When to use it

Plan monthly savings for a specific goal (vacation, down payment, emergency fund).
Compare RD rates across banks to maximize returns.
Estimate interest income for tax declarations.
Teach savings discipline with a structured monthly plan.

FAQ

Frequently asked questions

What is a Recurring Deposit (RD)?

A Recurring Deposit is a savings scheme where you deposit a fixed amount every month for a predetermined tenure. It earns compound interest and is ideal for building savings habit with small monthly amounts.

How is RD maturity value calculated?

Each monthly deposit earns compound interest (typically quarterly compounding) for its remaining tenure. The maturity value is the sum of all deposits plus compound interest earned on each.

What is the difference between RD and FD?

FD requires a lump sum deposit upfront. RD allows you to invest small fixed amounts monthly. FD typically offers slightly higher rates, but RD is better for those who earn monthly and want disciplined savings.

Is RD interest taxable?

Yes, RD interest is taxable under "Income from Other Sources." TDS is deducted if interest exceeds ₹40,000/year. You need to declare the interest in your ITR.

Can I increase my RD installment mid-tenure?

No. Standard RD has a fixed monthly installment throughout the tenure. If you want to increase contributions, you would need to open an additional RD.

What happens if I miss an RD installment?

Most banks charge a small penalty for missed installments. If installments are missed for 3+ months consecutively, the RD may be prematurely closed.