RD Calculator
Calculate your Recurring Deposit maturity amount, total deposits and estimated interest with our free online RD Calculator.
Deposits are assumed to be made regularly at the beginning of each month.
RD Return Breakdown
Your maturity value consists of your total recurring deposits plus the estimated interest accumulated during the RD tenure.
Year-wise RD Growth
| Year | Monthly Deposit | Annual Deposit | Interest | Cumulative Interest | Estimated Balance |
|---|
What is a Recurring Deposit?
A Recurring Deposit, commonly known as an RD, is a deposit product that allows you to invest a fixed amount regularly, usually every month, for a predetermined period.
Instead of investing a large lump sum at the beginning, an RD allows you to build savings through regular deposits. The financial institution pays interest according to the applicable RD rate and product terms.
What is an RD Calculator?
An RD Calculator is an online financial tool that estimates the maturity value of a recurring deposit.
You can enter your monthly deposit, expected interest rate and investment tenure to estimate your total deposits, interest earned and maturity amount.
How Does an RD Calculator Work?
Unlike an FD, where the complete principal is normally deposited at the beginning, an RD receives multiple deposits over time. Therefore, every monthly installment has a different amount of time to earn interest.
This calculator models regular monthly deposits and applies the selected interest-compounding assumption to estimate the final value.
Monthly Deposit × Number of Installments + Estimated Interest
Each installment earns interest for a different period, so the exact bank maturity calculation may differ from a simple lump-sum FD formula.
RD Calculator Example
Suppose you deposit ₹5,000 every month for five years at an assumed interest rate of 7% per year. You would make 60 monthly deposits, giving you total deposits of ₹3,00,000.
The calculator then estimates the additional interest accumulated on those deposits and displays the estimated maturity amount.
RD vs FD: What is the Difference?
- RD: You make regular deposits, usually every month.
- FD: You generally invest a lump sum at the beginning.
- RD can be useful for people who want to build savings gradually from regular income.
- FD can be useful when you already have a lump sum available for investment.
Benefits of Recurring Deposits
- Encourages regular saving.
- Allows investment through smaller periodic deposits.
- Provides a predetermined deposit tenure.
- Interest is generally known according to the applicable product rate and terms.
- Can be useful for short- and medium-term savings goals.
Factors That Affect RD Returns
- Monthly deposit amount
- RD interest rate
- Investment tenure
- Deposit timing
- Compounding methodology
- Premature closure rules
- Applicable tax rules
Is RD Interest Taxable?
Interest earned from an RD may be taxable depending on applicable income-tax rules and the investor’s circumstances.
The optional tax field in this calculator provides only a simple illustration. It does not calculate your actual income-tax liability or TDS obligation.
Can an RD Be Closed Before Maturity?
Depending on the financial institution and product terms, an RD may allow premature closure subject to applicable conditions, penalties or revised interest rates.
Always check the specific bank or financial institution’s rules before opening or closing an RD.
Why Use an RD Calculator?
An RD calculator makes it easier to estimate how regular monthly savings can accumulate over time. It can be useful when planning goals such as an emergency fund, education, travel, a major purchase or other medium-term financial goals.
