RD Calculator
A recurring deposit lets you save a fixed amount every month for a set period and earns a fixed rate, with interest compounded quarterly by most banks. Each monthly instalment earns interest only for the time it stays in the account, so the first deposits earn the most. This calculator computes the maturity amount and the interest earned for any monthly deposit, rate and tenure. It is a good way to build a habit and a short- to medium-term fund without market risk. Banks may round differently, so check your own bank’s figure.
How to use the rd calculator
- Enter the monthly deposit and the annual interest rate.
- Enter the tenure in months — 60 months is five years.
- Read the maturity amount, the total you deposit and the interest earned.
- Compare an RD with an FD or SIP, remembering that RD interest is taxable.
Formula
Each instalment earns quarterly-compounded interest for the months it stays: maturity = Σ d × (1 + r ÷ 4)(months remaining ÷ 3), summed over every monthly deposit d, with r the annual rate as a decimal. Interest = maturity − total deposited.
Worked examples
₹5,000 a month for 5 years at 6.5%
You deposit ₹3,00,000.00 and receive ₹3,54,954.10 at maturity — interest of ₹54,954.10.
A 3-year RD
₹10,000 a month for 36 months at 6.5% gives ₹3,98,243.73.
A higher rate
At 7.25% instead of 6.5%, the 5-year ₹5,000 RD matures at ₹3,62,046.86.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- ₹3,000 a month RD for 36 months at 6.8%. What is the maturity amount?
Show answer
Maturity amount: ₹1,20,035.38 · Interest earned: ₹12,035.38
Common mistakes to avoid
- Missing instalments. Late deposits attract penalties and can reduce the maturity amount.
- Assuming a fixed-rate RD beats inflation. Check the post-tax, post-inflation return.
- Not accounting for tax: RD interest is taxable and may attract TDS.
- Comparing RDs only by headline rate without checking compounding.
- Using an RD for long-term goals where equity may suit better, with an adviser’s guidance.
Frequently asked questions
How is RD maturity calculated?
By compounding each monthly deposit at the bank’s rate for the months it remains in the account and adding them up.
How is an RD different from an FD?
An FD is one lump sum; an RD is a monthly saving. Both earn a fixed rate.
Is RD interest taxable?
Yes, as income, and banks may deduct TDS above limits.
Can I break an RD early?
Usually yes with a penalty or a reduced rate; check your bank’s terms.
Is this advice?
No. It is an estimate; your bank’s figure is final.
Sources and further reading
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.