RD Calculator
A recurring deposit lets you save a fixed amount every month and earn FD-like interest, making it ideal for building a habit of regular saving without a large upfront sum. This RD calculator estimates what your monthly instalments will grow into. Enter the monthly deposit, the interest rate, and the tenure, and it shows the maturity value along with the total interest earned. Because each instalment is deposited at a different time, every one earns interest for a different number of months — the calculator handles that for you. RDs are popular for short- to medium-term goals like a vacation, a gadget, or an emergency buffer, where safety and predictability matter more than high returns.
5.0 years
Maturity Value
₹3,60,053
Invested
₹3,00,000
Interest Earned
₹60,053
About the RD Calculator
An RD calculator estimates the maturity value of a recurring deposit, where you invest a fixed amount monthly for a set tenure at a fixed rate. Each instalment compounds for the remaining months until maturity.
Why it is useful
RDs reward discipline, but the staggered deposits make the maturity value hard to estimate by hand. This tool gives you the exact figure, helping you choose a monthly amount that meets your goal and compare RD offers across banks.
How the calculation works
Each monthly deposit earns compound interest (banks typically compound quarterly) for the months remaining until maturity. The calculator computes the compounded value of every instalment and adds them together to give the total maturity amount.
Key inputs explained
- Monthly deposit: The fixed amount you save each month.
- Interest rate: The annual rate offered on the RD.
- Tenure: How many months you continue the deposit.
Example calculation
Inputs
- Monthly deposit
- ₹5,000
- Interest rate
- 6.5% p.a.
- Tenure
- 3 years (36 months)
Calculation breakdown
- Total deposited
- ₹5,000 × 36 = ₹1,80,000
- Each instalment compounds
- For its remaining months
- Interest added
- ≈ ₹18,800
You deposit ₹1.8 lakh over three years and earn about ₹18,800 in interest. The earliest instalments earn the most because they compound for the full tenure.
Benefits
- Builds a saving habit with small monthly amounts.
- Returns are guaranteed and capital is safe.
- Flexible tenures to match short-term goals.
Limitations
- Interest is fully taxable at your slab rate.
- Returns are modest and may trail inflation after tax.
- Missing instalments can attract a small penalty.
Tips
- Automate the monthly debit so you never miss an instalment.
- Use an RD for goals 1–3 years away where safety matters most.
- For longer goals, compare with a SIP, which may earn more.
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About this calculator
The RD Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.