RD Calculator

How to use the RD calculator

Enter the amount you will deposit every month, the interest rate and the tenure. The calculator shows the total you deposit, the interest earned and the maturity value.

How RD interest is calculated

In a recurring deposit, each monthly instalment earns interest only for the time it stays in the account. The first instalment earns interest for the full tenure; the last earns interest for just one month. Most Indian banks compound RD interest quarterly. This calculator adds up the value of every instalment using quarterly compounding: each instalment grows by (1 + rate ÷ 400) raised to the number of months it stays invested divided by three.

For example, ₹5,000 a month for 5 years at 7% means ₹3,00,000 deposited in total, and the maturity value comes to about ₹3,60,000.

RD vs SIP

An RD gives a fixed, known return, and the bank guarantees it. A mutual fund SIP can give higher returns over long periods, but its value goes up and down with the market. RDs suit short-term goals with a fixed date, such as a fee payment or a planned purchase in two years. For long-term goals, compare with our SIP calculator.

Things to know

• Missing an instalment may attract a small penalty, depending on the bank.
• Closing an RD early usually reduces the interest rate applied.
• RD interest is taxable like FD interest, and TDS rules apply.
• Post office RDs have a fixed tenure and their own rate set by the government.

Your bank’s maturity amount may differ slightly because of rounding and its exact method. This tool is for planning only.

Frequently asked questions

How is RD interest compounded?

Most Indian banks compound RD interest quarterly, which this calculator uses.

Is an RD better than a SIP?

An RD gives a guaranteed return and suits short-term goals. A SIP is market-linked and suits long-term goals where you can handle ups and downs.

What if I miss an RD instalment?

Many banks charge a small penalty for late or missed instalments. Check your bank’s rules.