RD Calculator – Calculate Recurring Deposit Maturity Instantly
Maturity Amount
Total Interest Earned
Total Amount Deposited
What is a Recurring Deposit (RD)?
A Recurring Deposit is a savings scheme offered by banks and post offices where you deposit a fixed amount every month for a chosen tenure. At maturity you receive the total deposited amount plus compound interest. RDs are ideal for salaried individuals who want to build a savings habit with predictable, guaranteed returns.
How RD Interest is Calculated
Indian banks use quarterly compounding for RDs. The maturity amount formula is:
M = R × [(1+i)^n - 1] / (1 - (1+i)^(-1/3))
R = monthly deposit | i = annual rate ÷ 400 | n = total quarters
Here is a worked example:
- Monthly Deposit: ₹5,000
- Interest Rate: 7% per annum
- Tenure: 2 years (8 quarters)
i = 7 / 400 = 0.0175
M = 5000 × [(1.0175)^8 - 1] / (1 - (1.0175)^(-1/3))
Maturity Amount ≈ ₹1,28,395 | Total Deposited = ₹1,20,000 | Interest ≈ ₹8,395
RD vs FD — Which is Better?
Recurring Deposit (RD)
Best for people with a regular monthly income who want to save systematically. You commit a fixed monthly amount and build a corpus over time without needing a lump sum upfront.
Fixed Deposit (FD)
Best when you already have a lump sum to invest. FD offers slightly higher effective returns than RD at the same rate because the full principal earns interest from day one.
Benefits of Opening an RD
- Disciplined Savings: Monthly deposits build a consistent saving habit, making RD one of the simplest wealth-building tools for beginners.
- Guaranteed Returns: Unlike market-linked instruments, RD interest rates are fixed at the time of opening and do not fluctuate.
- Flexible Tenure: RD tenures typically range from 6 months to 10 years. Choose one that aligns with your financial goal.
- Loan Against RD: Many banks allow you to take a loan of up to 90% of the RD value — providing liquidity without breaking the deposit.
Frequently Asked Questions About RD Calculator
What is an RD Calculator?
An RD Calculator is an online tool that helps you estimate the maturity amount and total interest earned on a Recurring Deposit based on your monthly deposit, annual interest rate, and tenure.
How is RD interest calculated?
Indian banks calculate RD interest using quarterly compounding. The formula is M = R × [(1+i)^n - 1] / (1 - (1+i)^(-1/3)), where R is the monthly deposit, i is the quarterly interest rate (annual rate ÷ 400), and n is the number of quarters.
What is the difference between RD and FD?
In an FD you invest a lump sum once. In an RD you invest a fixed amount every month. RD suits regular income earners building savings over time; FD suits those who have a lump sum available to invest immediately.
Is TDS deducted on RD interest?
Yes. Banks deduct TDS at 10% if total interest income exceeds ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G or 15H to avoid TDS if your income is below the taxable threshold.
Can I withdraw an RD before maturity?
Most banks allow premature withdrawal with a penalty — typically 1% lower than the applicable rate. Some banks also enforce a minimum lock-in period before premature closure is permitted.
What is the minimum deposit for an RD?
Most banks allow RDs starting from ₹100 per month. Post office RDs start from ₹100 per month with no maximum limit. Private banks may have slightly higher minimums.
Is Calcon's RD Calculator free to use?
Yes, completely free — no sign-up, no download, no usage limit. Works on all devices including mobile.
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