RD Calculator

How to use RD Calculator

1. Enter the amount you will deposit every month.
2. Type the interest rate offered by your bank or post office for the tenure you plan to choose. The prefilled number is only an example.
3. Enter the tenure in years and months, and keep quarterly compounding or switch to monthly, half-yearly or yearly.
4. Check the maturity amount, total deposited and interest, then scan the quarter-by-quarter or month-by-month table.

How recurring deposit maturity is calculated

In a recurring deposit you commit to a fixed monthly amount D for N months. Each instalment is treated as a separate small deposit that compounds from the day it is paid until maturity. If the deposit is made at the start of month k, it stays for N - k + 1 months. Using n compounding periods a year and an annual rate r, the maturity value is the sum, over every instalment, of D x (1 + r/n)^(n x months/12). With quarterly compounding n is 4, so each month of waiting adds a third of a quarter of growth.

Banks may round each quarter’s credit or use slightly different day counts, so your receipt can differ from this estimate by a small amount. The calculator is meant for planning and comparing options.

Worked example

Suppose you deposit 5,000 every month for 24 months at an example rate of 6.5 percent with quarterly compounding. Total deposited is 5,000 x 24 = 120,000. The first instalment grows for 24 months, the second for 23, and so on down to the last, which grows for 1 month. Adding all 24 grown instalments gives a maturity amount of 128,425.30, so the interest earned is 8,425.30. Try changing the compounding to yearly and you will see a slightly smaller maturity value, because interest is credited less often.

Tips and limits

An RD suits people who want a disciplined habit and cannot invest a lump sum. Choose a tenure that matches a real goal such as a fee, a trip or an emergency buffer, and check the rules for premature closure before you start. For longer horizons and higher expected returns, a market-linked option may be considered, but it also carries risk that a deposit does not.

• The rate you enter is an example until replaced by a real quoted rate.
• Interest is generally taxable; tax rules vary, so this page does not apply any.
• Tenure must be a whole number of months, up to 600 months.
• This is an estimate only and not financial advice.
• Calculations happen in your browser and nothing you type is sent anywhere.

Why use this rd calculator tool

• Each instalment tracked separately. Every monthly deposit earns interest for exactly the months it stays in, which is how recurring deposits work in practice.
• Quarterly by default. Quarterly compounding is preselected as it is the usual convention in India, with other options available for other banks and countries.
• Quarter or month table. Switch between a compact quarterly table and a full month-by-month schedule of deposits, interest and balance.
• Indian or international digits. Show amounts as 1,00,000 or 100,000 and use any currency symbol.

Frequently asked questions

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