RD Calculator
Calculate maturity amount and interest earned on your Recurring Deposit
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What is Recurring Deposit (RD)?
A Recurring Deposit (RD) is a savings instrument where you deposit a fixed amount every month for a predetermined tenure at a fixed interest rate. RDs are ideal for building savings through disciplined monthly investments, making them perfect for salaried individuals and those with regular income.
Key Features of RD:
- Fixed monthly deposit amount
- Guaranteed returns with capital protection
- Flexible tenure (6 months to 10 years)
- Higher interest rates than regular savings accounts
- Disciplined savings habit formation
- Loan facility available against RD (up to 90% of value)
- Lower minimum deposit requirement compared to FD
How Recurring Deposit (RD) is Calculated?
Recurring Deposit (RD) interest is calculated using compound interest applied to monthly deposits. Each monthly deposit earns interest, and the interest compounds over the tenure, resulting in higher returns than simple interest.
Recurring Deposit Formula/Equation
Where:
- M = Maturity amount
- P = Monthly deposit amount
- r = Monthly interest rate, calculated as (Annual rate / 12 / 100)
- n = Number of monthly installments
Example:
Let's say you deposit ₹5,000 monthly in an RD at 7.5% annual interest rate for 5 years (60 months).
Given: P = ₹5,000, Annual rate = 7.5%, Years = 5, Months = 60
Step 1: Calculate monthly interest rate (r)
r = 7.5% / 12 / 100 = 0.00625
Step 2: Apply the RD Formula
M = P × [((1 + r)^n - 1) / r] × (1 + r)
M = ₹5,000 × [((1.00625)^60 - 1) / 0.00625] × 1.00625
M = ₹5,000 × [(1.4533 - 1) / 0.00625] × 1.00625
M = ₹5,000 × [0.4533 / 0.00625] × 1.00625
M = ₹5,000 × 72.528 × 1.00625
M = ₹3,64,900
Step 3: Calculate Total Deposited
Total Deposited = ₹5,000 × 60 = ₹3,00,000
Step 4: Calculate Interest Earned
Interest = ₹3,64,900 - ₹3,00,000 = ₹64,900
Result: Your RD of ₹5,000/month grows to ₹3,64,900, earning ₹64,900 in interest over 5 years.
Why Use Our RD Calculator?
Accurate Calculations
Get precise maturity amount and interest calculations using the standard RD formula used by banks.
Monthly Breakdown
See how your RD grows month by month with detailed breakdowns of deposits and interest earned.
Visual Growth Charts
Track your RD growth over time with interactive charts showing total deposited vs maturity amount.
Instant Results
Get instant calculations as you adjust monthly deposit, interest rate, or tenure.
Flexible Planning
Calculate for any tenure in months or years. Perfect for short-term and long-term savings goals.
Mobile Friendly
Plan your RD investments on the go with our mobile-optimized calculator.
Benefits of Using Our RD Calculator
💼 Plan Monthly Savings
Calculate exactly how much you need to save monthly to reach your target amount. Perfect for planning major expenses, vacations, or emergency funds.
📊 Understand Compound Growth
See how your monthly deposits grow with compound interest. Understand how each deposit earns interest and contributes to your final maturity amount.
🎯 Set Achievable Goals
Use the calculator to determine the monthly deposit needed for your financial goals. Whether it's a down payment, education fund, or retirement savings.
💰 Compare Investment Options
Test different monthly deposit amounts and tenures to find the best RD plan for your budget. Compare RD returns with other investment options.
📈 Track Monthly Progress
Visualize how your RD grows month by month with our interactive charts. See the cumulative effect of regular savings and compound interest.
Recurring Deposit Calculator FAQs
❓How is RD interest calculated?
RD interest is calculated using compound interest formula applied to monthly deposits. The formula is: M = P × [((1 + r)^n - 1) / r] × (1 + r), where P is monthly deposit, r is monthly interest rate, and n is number of months. Interest is compounded quarterly in most banks.
❓What is the minimum tenure for RD?
The minimum tenure for RD is typically 6 months, while maximum tenure can be up to 10 years. However, this may vary by bank. Some banks offer flexible tenures starting from 3 months.
❓Is RD interest taxable?
Yes, RD interest is taxable as per your income tax slab. TDS (Tax Deducted at Source) of 10% is applicable if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year. You can claim TDS credit while filing income tax returns.
❓Can I skip monthly deposits in RD?
No, regular monthly deposits are mandatory in RD. Missing a deposit may result in penalty or closure of the account. Some banks allow a grace period, but it's best to maintain regular deposits to avoid penalties.
❓Is this RD calculator accurate?
Yes, this calculator uses the standard RD formula used by banks. However, actual interest rates and compounding frequency may vary by bank. Always verify with your bank for exact interest rates and terms.