What is a RD Calculator?
A RD Calculator is a free online tool that helps you calculate recurring deposit maturity amount and total interest earned for any monthly deposit amount and tenure. FinCalc Pro offers India's most accurate RD Calculator with instant results, detailed charts, and step-by-step breakdowns — completely free with no login required.
RD Calculator Formula
M = Maturity amount | R = Monthly installment | i = Quarterly interest rate (Annual÷4÷100) | n = Number of quarters | Banks apply quarterly compounding on RD
How to Use RD Calculator
- Enter your monthly RD deposit amount
- Enter the annual interest rate offered by your bank
- Enter the RD tenure in months or years
- Click Calculate to see total interest and maturity amount
- Compare with FD for the same total investment
RD Calculator — Example
Monthly Deposit: ₹5,000 | Rate: 6.5% | Tenure: 2 years → Total Deposited: ₹1,20,000 | Interest: ₹8,375 | Maturity: ₹1,28,375
Benefits of Using RD Calculator
- Build savings habit with affordable monthly deposits
- Better than savings account — higher fixed interest rate
- No market risk — guaranteed bank-backed returns
- Flexible tenures from 6 months to 10 years
Frequently Asked Questions — RD Calculator
What is a Recurring Deposit?
A Recurring Deposit (RD) is a savings scheme where you deposit a fixed amount every month for a fixed period. At maturity, you receive the total deposited amount plus interest. It is ideal for regular savers who cannot invest a lump sum.
How is RD interest calculated?
Banks calculate RD interest using quarterly compounding. Each monthly installment earns interest from its deposit date to maturity. The formula is M = R × [(1+i)^n − 1] / (1 − (1+i)^(−1/3)) where i is the quarterly rate.
Is TDS applicable on RD interest?
Yes, TDS at 10% is deducted on RD interest if total interest income exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G (or 15H for seniors) to avoid TDS if your income is below taxable limit.
Can I break RD before maturity?
Yes, most banks allow premature RD closure with a penalty of 0.5–1% on the applicable rate for the completed period. Some banks do not allow premature closure for the first 3-6 months.