Recurring Deposit (RD) Calculator

Calculate maturity amount and interest earned on your Recurring Deposit

Currency

Monthly Deposit

$100$500K

Annual Interest Rate

1%20%

Tenure

months

1 mo120 mo

Results

Adjust the inputs and click Calculate.

Frequently Asked Questions

A Recurring Deposit (RD) is a savings scheme offered by banks where you deposit a fixed amount every month for a predetermined tenure. The bank pays compound interest (typically quarterly) on the accumulated deposits. At maturity, you receive the total deposited amount plus all interest earned. RDs are ideal for building disciplined monthly savings habits.

RD interest is calculated using: M = R × [(1+i)ⁿ − 1] / (1 − (1+i)^−1/3) (Indian bank formula, quarterly compounding).
This calculator uses a simplified monthly compound approach for broader applicability: each monthly deposit earns compound interest for the remaining months of the tenure. The result closely matches the standard bank formula.

An FD (Fixed Deposit) requires a one-time lump sum investment. An RD (Recurring Deposit) requires a fixed monthly deposit throughout the tenure. RDs are better suited for people with regular income who want to save monthly. FDs are better for those who have a lump sum to invest. Both offer guaranteed, fixed returns.

Yes. RD interest is taxable as "Income from Other Sources." TDS is applicable if total interest from all RDs with a bank exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H if your total income is below the taxable limit to avoid TDS deduction.

Yes, most banks allow premature closure of RD accounts, but a penalty of 1–2% is typically charged on the applicable interest rate. The maturity amount will be lower than calculated. Some banks also allow partial withdrawal or loans against RDs.

Banks typically charge a penalty for missing a monthly RD instalment (usually ₹1–2 per ₹100 per month). If you miss multiple instalments, the bank may foreclose the RD prematurely. To avoid penalties, ensure your bank account has sufficient funds on the scheduled RD deduction date.

RD offers guaranteed returns and is risk-free, making it ideal for conservative investors or short-term goals. SIP (Systematic Investment Plan) in mutual funds has historically delivered higher returns over the long term but carries market risk. For capital protection and fixed returns, choose RD. For long-term wealth creation, SIP generally outperforms.

Most banks in India allow RDs with a minimum monthly deposit of ₹100. Post Office RDs have a minimum of ₹100/month with no upper limit. Online banks and fintech platforms may have their own minimums. The tenure typically ranges from 6 months to 10 years.

An RD offers guaranteed, fixed returns with zero market risk — ideal for capital protection and short-term goals (1–5 years). A SIP in equity mutual funds has historically delivered higher returns (10–15% annually over long periods) but comes with market risk. For money needed within 3 years, choose RD for safety. For wealth creation over 5+ years, SIP in diversified equity funds generally outperforms RD significantly.

Banks charge a late payment penalty for missed RD instalments, typically ₹1–2 per ₹100 per month in India. If multiple instalments are missed consecutively (usually more than 3–4 months), the bank may foreclose the RD at a lower interest rate. The Post Office RD allows a grace period of one month. To avoid penalties, set up an auto-debit (ECS mandate) from your salary account on the date of credit.

About This RD Calculator

This free Recurring Deposit calculator helps you estimate the maturity amount and total interest earned on your monthly bank RD. Enter the monthly deposit amount, annual interest rate, and tenure in months to instantly see your maturity value, total interest, and a month-by-month breakdown.

Recurring Deposits are one of the safest savings instruments for salaried individuals. By depositing a small, fixed amount every month, you accumulate wealth with guaranteed, bank-backed returns — without the risk of market volatility.

When to use this calculator

Planning monthly savings with guaranteed returns
Comparing RD rates across different banks and post offices
Estimating returns for Post Office RD schemes
Building an emergency fund or saving for a short-term goal

Standards & References

Wikipedia — Recurring Deposit

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