💰 RD Calculator

Calculate your Recurring Deposit maturity amount.

Calculate Now

What is a Recurring Deposit (RD) Calculator?

A Recurring Deposit lets you build savings discipline by depositing a fixed sum every month into a bank or post office account, earning interest at rates similar to fixed deposits. Unlike a lump-sum FD, an RD suits salaried individuals who want to save gradually rather than invest a large amount upfront. This calculator projects the maturity value of your monthly instalments so you can compare RD schemes at SBI, HDFC, ICICI, or your local post office before locking in your money for a fixed tenure.

RD Maturity Formula

Indian banks compound RD interest quarterly, which makes the maths trickier than a simple SIP. The standard formula used by this calculator is:

M = R × [(1+i)^n − 1] / (1 − (1+i)^(−1/3))

Here, R is your monthly deposit, i is the quarterly interest rate (annual rate ÷ 4 ÷ 100), and n is the number of quarters in your tenure (months ÷ 3).

Worked Example

Suppose you deposit ₹5,000 every month for 24 months at an annual rate of 6.5%. That gives a quarterly rate i = 0.01625 and n = 8 quarters. Plugging these into the formula above produces a maturity value of roughly ₹1,28,400. Since you deposited ₹5,000 × 24 = ₹1,20,000 in total, the quarterly compounding effect adds around ₹8,400 in interest over two years — noticeably more than what simple interest would give you.

How to Use This Calculator

  1. Enter your planned monthly deposit amount in rupees.
  2. Enter the annual interest rate offered by your bank or post office (typically 6%–7.5%).
  3. Enter the tenure in months (RDs usually run from 6 months to 10 years).
  4. Click Calculate to see your projected maturity amount instantly.

Things to Know

  • Interest earned on RDs is fully taxable as "income from other sources," and banks deduct TDS if total interest across your deposits with that bank crosses ₹40,000 in a year (₹50,000 for senior citizens).
  • Post Office RDs currently offer government-backed rates that are revised quarterly, and are a popular option for risk-averse savers in smaller towns.
  • Breaking an RD before maturity usually attracts a penal interest rate cut of around 1%–2%, so it works best when you're confident about the monthly commitment.
💡 Tip: If you're unsure whether to save through an RD or invest via mutual funds, try the SIP Calculator alongside this one to compare guaranteed returns against market-linked growth.

📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.