RD Calculator
Calculate recurring deposit maturity value and interest for monthly savings.
- Free
- No sign-up
- Runs in your browser
Start from a goal
Interest compounded
Most banks and the post office compound RD interest quarterly.
Maturity value
₹3,61,569
₹5,000 a month for 5 years at 7.2% p.a., compounded quarterly
- You deposit₹3,00,000 (83%)
- Interest earned₹61,569 (17%)
- Total deposited
- ₹3,00,000
- Interest earned
- ₹61,569
- Number of deposits
- 60
- Maturity value
- ₹3,61,569
With monthly compounding you would get ₹3,61,983 (₹414 more). RD interest is taxable at your income-tax slab rate.
Deposits and interest, year by year
- Deposited so far
- Interest earned so far
Year-by-year growth
| Year | Deposited | Interest | Balance |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,378₹2.38K | ₹62,378₹62.4K |
| 2 | ₹1,20,000 | ₹9,369₹9.37K | ₹1,29,369₹1.29L |
| 3 | ₹1,80,000 | ₹21,316₹21.3K | ₹2,01,316₹2.01L |
| 4 | ₹2,40,000 | ₹38,585₹38.6K | ₹2,78,585₹2.79L |
| 5 | ₹3,00,000 | ₹61,569₹61.6K | ₹3,61,569₹3.62L |
Complete Guide to Recurring Deposit (RD) Calculator
A Recurring Deposit (RD) is a disciplined investment tool offered by banks and post offices. It allows you to deposit a fixed amount every month and earn interest at a rate similar to Fixed Deposits. The RD calculator helps you estimate the maturity amount, total interest earned, and plan your savings goals effectively.
Our interactive RD Calculator above provides real-time estimates with monthly deposit adjustments, interest rate changes, and tenure selection. You can also compare quarterly vs monthly compounding. In this detailed guide, we cover everything you need to know about RDs – from formulas to tax implications, benefits, and strategies.
1. Understanding the RD Calculation Formula
M = R * [ (1 + r/4)^(4*t) - 1 ] / (1 - (1 + r/4)^(-1/3) )Where:
- M = Maturity Amount
- R = Monthly Deposit
- r = Annual Interest Rate (in decimal)
- 4 = Quarterly compounding (interest added four times a year); the −1/3 reflects the three monthly deposits in each quarter
- t = Tenure in years
2. Benefits of Investing in RD
- Regular savings habit: Fixed monthly deposit enforces discipline.
- Low risk: RDs are backed by banks (up to ₹5 lakh DICGC insurance).
- Predictable returns: Interest rate is fixed at the time of opening.
- Loan against RD: You can take a loan up to 90% of the RD balance.
- Flexible tenures: Typically from 6 months to 10 years.
3. Tax Implications on RD Interest
Interest earned on RD is fully taxable under “Income from Other Sources”. Banks deduct TDS at 10% if total interest exceeds ₹40,000 per year (₹50,000 for senior citizens). You can submit Form 15G/15H to avoid TDS if your income is below taxable limit. Also, there is no tax benefit on RD under Section 80C unless it is a tax-saver RD (5-year lock-in).
4. RD vs SIP: Which is Better?
RD offers guaranteed returns (typically 5.5% to 7.5%) and zero risk. SIP in mutual funds can give higher returns (10-14% historically) but comes with market risk. Choose RD for safety and short-term goals (1-3 years). Choose SIP for long-term wealth creation (5+ years). Our SIP calculator (separate tool) helps compare.
5. How to Use the RD Calculator for Goal Planning
- Goal-based: Suppose you need ₹5 lakhs after 3 years. Adjust monthly deposit until maturity matches your goal.
- Compare banks: Different banks offer different RD rates. Use our calculator to compare.
- Premature withdrawal: Our calculator assumes full tenure. Premature withdrawal usually incurs penalty (0.5-1% lower interest).
- Download report: Download the year-by-year table as a CSV (opens in Excel) for your records, or use “Copy link” to save your exact numbers.
6. Senior Citizen Benefits in RD
Most banks offer 0.50% higher interest rate to senior citizens on RDs as well. For example, if a regular RD gives 7%, a senior citizen gets 7.5%. This can significantly increase maturity amounts over longer tenures.
7. RD vs Fixed Deposit (FD)
- Deposit pattern: RD requires monthly deposits; FD requires one lump sum.
- Returns: Both offer similar interest rates.
- Liquidity: RD allows premature closure (with penalty); FD can be broken.
- Suitable for: RD for salaried individuals wanting monthly savings; FD for those with idle lump sum.
8. Frequently Asked Questions (FAQ)
Yes, it uses the standard quarterly compounding formula used by most banks. Actual maturity may vary by a few rupees due to rounding or day-count conventions.
Absolutely. Most banks offer RD tenures from 6 months to 10 years.
Banks usually charge a penalty (₹50-100 per missed installment) and may reduce interest rate. Some banks allow revival within a grace period.
Yes, but you may get lower interest (1-2% below the applicable rate) and a penalty.
Click “Download year-by-year (Excel/CSV)”. The file includes your inputs, the maturity summary and the balance at the end of each year.
9. Tips to Maximize RD Returns
- Choose a bank offering the highest interest rate (small finance banks often give 0.5-1% more).
- Opt for longer tenures (5+ years) to benefit from compounding.
- Consider tax-saver RD (5-year lock-in) for Section 80C deduction.
- Set up auto-debit to avoid missing installments.
10. Final Thoughts
The RD Calculator is an essential tool for anyone looking to build a regular savings habit. Whether you are saving for a vacation, emergency fund, or a down payment, our interactive RD Calculator gives you clarity and confidence. Type or slide your numbers, try the example goals, and download your year-by-year table.
Start using the RD Calculator above now – watch your savings grow month by month, and take control of your financial future!