Recurring Deposit (RD) Calculator
Project the maturity amount and interest earned on regular monthly RD contributions.
What is Recurring Deposit (RD) Calculator?
A Recurring Deposit (RD) calculator calculates maturity value and quarterly compounded interest earned on fixed monthly savings deposits in commercial banks or post offices.
Financial calculators are useful because they turn assumptions into numbers you can compare. Instead of guessing, you can test different values for amount, time horizon, expected rate, and goal requirements to understand how the final result changes before you commit.
How this calculator works
Maturity Value M = P × [(1 + i)^n − 1] / [1 − (1 + i)^(-1/3)], where P is monthly deposit, i is quarterly interest rate, and n is total months.
Worked example
Depositing ₹5,000 per month for 3 years at 7.0% p.a. results in total deposits of ₹1,80,000 and a maturity payout of ₹2,01,154, earning ₹21,154 in interest.
Most common mistakes people make
- Assuming RD interest is tax-free (RD interest is fully taxable at your personal income tax slab rate under Section 56).
- Missing monthly deposits, which attracts bank penal interest and default charges.
- Selecting long 5-year RDs when debt mutual funds or PPF offer superior tax efficiency for multi-year horizons.
- Forgetting TDS deduction by the bank if total annual interest across deposits exceeds ₹40,000 (₹50,000 for senior citizens).
- Not comparing post office RD rates against private and small finance bank RD offers.
Frequently asked questions
Recurring Deposit (RD) Calculator helps you estimate the likely result of a financial decision using standard formulas and the assumptions you enter for amount, rate, duration, and frequency.
The calculator applies the relevant financial formula to your inputs and shows a real-time estimate so you can compare different scenarios before making a decision.
It gives a practical estimate based on standard formulas and assumptions, but actual outcomes can vary with market performance, policy changes, fees, taxes, and changing personal circumstances.
Yes. These calculators are designed for quick planning and comparison, especially when you want to estimate future values, repayments, or coverage needs before locking in a financial choice.
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Disclaimer
Bank recurring deposits are insured up to ₹5,00,000 per depositor by the DICGC. Premature withdrawal rules and penalty rates vary by bank.