How is the monthly deposit calculated?

The formula is derived from the RD maturity formula. Standard RD maturity: M = R × (1+i) × [(1+i)n − 1] / i. Rearranging for R: R = M × i / [(1+i) × ((1+i)n − 1)], where i = monthly rate (annual ÷ 12) and n = tenure in months.

Recurring Deposit (RD) Goal Planner

Find out how much you need to deposit each month to reach your savings target

Currency

Target Amount

$1K$10M

Annual Interest Rate

1%20%

Tenure

months

1 mo120 mo

Results

Adjust the inputs and click Calculate.

Frequently Asked Questions

An RD Goal Planner is a reverse Recurring Deposit calculator. Instead of calculating the maturity amount from a given monthly deposit, it works backwards — you enter your target amount, interest rate, and tenure, and it tells you exactly how much you need to deposit each month to reach that goal.

The formula is derived from the RD maturity formula. Standard RD maturity: M = R × (1+i) × [(1+i)ⁿ − 1] / i. Rearranging for R: R = M × i / [(1+i) × ((1+i)ⁿ − 1)], where i = monthly rate (annual ÷ 12) and n = tenure in months.

Yes. Whether you're saving for a car, vacation, education, emergency fund, or any other goal, simply enter the target amount, the interest rate you expect to earn, and the time you have. The planner will tell you the exact monthly deposit needed.

If the required deposit exceeds your capacity, try: (1) Extending the tenure — more months means a smaller required monthly deposit. (2) Reducing the target amount slightly. (3) Finding an RD with a higher interest rate. (4) Combining RD savings with another investment vehicle.

Interest rates vary by bank and change over time. Small Finance Banks (like AU Small Finance Bank, Ujjivan, etc.) typically offer higher RD rates (7–9%) than large public sector banks. Post Office RD is a safe government-backed option. Always compare current rates on the bank's official website before opening an RD.

Most banks require a minimum RD tenure of 6 months. Post Office RD has a fixed tenure of 5 years. Some banks offer flexible tenures from 1 month to 10 years. For this planner, tenures as short as 1 month and up to 120 months (10 years) are supported.

Yes. RDs are one of the safest savings instruments in India. Bank RDs are insured by DICGC up to ₹5 lakhs per depositor per bank. Post Office RDs are backed by the Government of India. They are ideal for risk-free, goal-based savings over 6 months to 5 years.

RD provides guaranteed, fixed returns — ideal for short-to-medium-term goals where capital safety matters. SIP (in mutual funds) offers potentially higher returns but with market risk — better suited for long-term (5+ year) goals. For a 1–3 year goal, RD is generally safer. For 5+ years, equity SIP often outperforms.

To reach your goal faster: (1) Increase the deposit amount whenever your income grows. (2) Shorten the tenure — a smaller timeframe forces a higher monthly saving, building the habit. (3) Look for better rates by comparing small finance banks and post office schemes. (4) Automate savings via standing instructions so the deposit happens before you can spend the money. (5) Consider a Step-Up approach — increase your deposit by 10% every year to keep pace with salary growth.

Yes — especially for goals that are 2+ years away. If your goal is to accumulate ₹5 lakh in 3 years for a purchase that costs ₹5 lakh today, inflation of 6% per year means the same purchase will cost approximately ₹5.96 lakh by then. Enter an inflation-adjusted target in this planner to ensure your savings actually cover the future cost. Use the formula: Future Cost = Current Cost × (1 + inflation rate)^years.

About This RD Goal Planner

This free RD Goal Planner helps you reverse-calculate the required monthly deposit for any savings goal. Enter your target amount, the bank's annual interest rate, and the tenure in months — and instantly see how much you need to save every month to hit your target.

Unlike a regular RD calculator, this planner starts from your end goal and works backwards, making it perfect for financial planning around specific milestones like buying a vehicle, funding education, building an emergency fund, or planning a vacation.

When to use this planner

Planning a specific purchase and wanting to know monthly savings required
Comparing required deposits at different banks' interest rates
Building a disciplined monthly savings habit with a clear target
Checking if your savings goal is achievable within your timeline

Standards & References

Wikipedia — Recurring Deposit

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