What is RD Calculator?
Calculate Recurring Deposit maturity amount and total interest earned for any monthly deposit amount and tenure Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
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 This 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
Worked Example
Monthly Deposit: ₹5,000 | Rate: 6.5% | Tenure: 2 years → Total Deposited: ₹1,20,000 | Interest: ₹8,375 | Maturity: ₹1,28,375
Why Use This Tool?
- 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
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.
Explore more investment & mutual funds calculators or try our other free financial tools.