RD Calculator

The RD Calculator computes the maturity value of a Recurring Deposit — the disciplined-savings cousin of the Fixed Deposit. Instead of locking up one lump sum, an RD lets you deposit a fixed amount every month for a set tenure, earning interest at the bank's RD rate (usually the same as FDs of the same tenure). Enter the monthly instalment, tenure, and interest rate, and the tool returns the total invested, interest earned, and the final maturity value. RDs work well for people building an emergency fund from scratch, saving up for a specific short-term goal (wedding, holiday, appliance purchase, insurance premium), or forcing themselves into a monthly savings habit through auto-debit. Because you're depositing gradually, only the first month's contribution earns a full tenure's worth of interest — later contributions earn progressively less. The maturity math handles this correctly using the standard formula: M = R × [(1 + i)^n − 1] × (1 + i) ÷ i, where R is the monthly instalment, i is the quarterly rate divided by 3, and n is the number of months (approximation used by most Indian banks). Compare RDs to SIPs. Both involve fixed monthly outflows and force savings discipline. RDs deliver a fixed, guaranteed return (typically 6–7.5% pre-tax in 2026); SIPs into equity funds deliver variable, potentially much higher returns (10–14% historically) but with volatility along the way. Use RDs for goals within 1–3 years where capital preservation matters more than growth. Use SIPs for goals 5+ years away where you can ride out market cycles. Tax treatment is identical to FDs: interest is fully taxable at your slab rate, and TDS applies once annual interest crosses the threshold. Missing an RD instalment usually attracts a small penalty (about ₹1–2 per ₹100 per month for private banks). Post Office RDs offer slightly different terms — 5-year lock-in, government backing, quarterly compounding — and are worth comparing with bank RDs for pure safety-first savers. Use the calculator to model different monthly amounts and tenures. Doubling your monthly RD from ₹5,000 to ₹10,000 for 5 years at 7% doesn't just double the maturity — it also doubles the interest earned in absolute terms, because the compounding base is twice as big every month. Everything runs in your browser. Combine this tool with the FD Calculator for lump-sum comparisons, the SIP Calculator for the mutual fund alternative, and read our FD vs RD comparison guide before committing to either.