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RD Calculator – Calculate Recurring Deposit Maturity Online

A Recurring Deposit (RD) is a special kind of term deposit offered by Indian banks which helps people with regular incomes deposit a fixed amount every month into their RD account and earn interest at the rate applicable to Fixed Deposits. Our RD Calculator helps you accurately predict your maturity amount by factoring in your monthly investment, interest rate, and tenure.

How to Use the RD Calculator?

  1. Enter the amount you wish to deposit every month.
  2. Input the annual interest rate offered by your bank for the RD.
  3. Select the tenure (duration) of your RD in months or years.
  4. Click calculate to instantly see your total deposited amount, interest earned, and final maturity value.

Formula for Recurring Deposit

The standard formula used for RD calculations involves calculating the compound interest for each monthly deposit for its respective remaining duration. M = P × [(1 + r/n)^(nt) - 1] / [1 - (1 + r/n)^(-1/n)], where P is monthly deposit, r is interest rate, n is compounding frequency (quarterly), and t is time in years.

Solved Examples

Small Savings Example

Inputs: Monthly Deposit: ₹2,000 | Interest Rate: 6.0% | Tenure: 2 Years | Compounding: Quarterly

Calculation: Calculated iteratively for 24 months compounding quarterly.

Total Deposited: ₹48,000 | Total Interest: ₹3,059 | Maturity Amount: ₹51,059

Medium Savings Example

Inputs: Monthly Deposit: ₹5,000 | Interest Rate: 6.5% | Tenure: 5 Years | Compounding: Quarterly

Calculation: Calculated iteratively for 60 months compounding quarterly.

Total Deposited: ₹3,00,000 | Total Interest: ₹54,955 | Maturity Amount: ₹3,54,955

Large Savings Example

Inputs: Monthly Deposit: ₹10,000 | Interest Rate: 7.0% | Tenure: 3 Years | Compounding: Quarterly

Calculation: Calculated iteratively for 36 months compounding quarterly.

Total Deposited: ₹3,60,000 | Total Interest: ₹39,000 | Maturity Amount: ₹3,99,000

Top Tips for RD Investors

  • Set up a standing instruction or auto-debit from your savings account to ensure you never miss an RD installment.
  • Compare RD interest rates across various banks before starting. Small Finance Banks often offer higher rates.
  • Consider the impact of TDS. Submit Form 15G/15H if your total income is below the taxable limit.
  • Unlike SIPs in mutual funds, RD returns are guaranteed and unaffected by market volatility.
  • Ensure you have sufficient liquidity before committing to a high monthly deposit amount to avoid penalties for missed payments.

Common Mistakes to Avoid

  • Missing a monthly installment, which attracts penalty charges and reduces the overall interest earned.
  • Breaking an RD prematurely, which leads to a penalty and a lower interest payout.
  • Forgetting to account for inflation, which might make the real returns of an RD negative over a long period.
  • Not considering the tax implications (TDS and income tax) on the interest earned.

Frequently Asked Questions

A Recurring Deposit is a term deposit that allows you to deposit a fixed amount every month for a pre-defined period, earning an interest rate similar to a Fixed Deposit.
Banks in India typically calculate RD interest by compounding it on a quarterly basis. Each monthly installment earns interest for the remaining duration of the RD tenure.
Yes, the interest earned on an RD is fully taxable according to your income tax slab. Banks deduct TDS at 10% if the interest earned exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
No, once you open a standard RD, you cannot change the monthly installment amount. However, some banks offer flexible RDs (like Flexi RD) where you can deposit varying amounts up to a certain limit.
The minimum tenure for a Recurring Deposit is usually 6 months. It can go up to a maximum of 10 years.
If you miss an installment, the bank may charge a penalty fee. If you miss multiple consecutive installments (usually 3 to 6), the bank may prematurely close your RD account.
You cannot make partial withdrawals from an RD. You can break the RD completely before maturity, but this will attract a penalty (usually 0.5% to 1% reduction in the applicable interest rate).
Yes, just like Fixed Deposits, most banks offer an additional 0.50% to 0.75% interest on RDs for senior citizens.
Last updated: 2026-10-06T13:45:33.509Z