he RD Calculator projects the final maturity value of your recurring deposit based on monthly installment amount, annual interest rate, and deposit tenure. It uses quarterly compounding — the standard method used by Indian banks — and shows total deposits made, interest earned, and effective return percentage. Ideal for comparing RD schemes across SBI, HDFC, ICICI, and Post Office deposits.
RD (Recurring Deposit) Calculator
Calculate maturity amount and interest earned on your recurring deposit.
How RD Calculator Works
A recurring deposit grows through quarterly compounding applied on top of a fixed monthly installment, which makes its maturity value harder to estimate in your head than a simple lump-sum deposit. This RD calculator projects your maturity amount by compounding your monthly deposits at the quarterly rate banks like SBI, HDFC, ICICI, and India Post typically use.
Formula: Quarterly Rate = Annual Interest Rate ÷ 400. Monthly Growth Factor = (1 + Quarterly Rate) ^ (1/3). For each month of the tenure: Balance = (Balance + Monthly Deposit) × Monthly Growth Factor. Maturity Amount = the running Balance after the final month. Total Deposited = Monthly Deposit × Number of Months. Interest Earned = Maturity Amount − Total Deposited.
- Monthly deposit (₹) — the fixed amount you deposit every month
- Interest rate (% per annum) — the annual interest rate quoted by the bank
- Tenure — how long the recurring deposit runs, entered in years or months
Example Scenarios
| Monthly Deposit | Interest Rate | Tenure | Maturity Value |
|---|---|---|---|
| ₹1,000 | 8% | 3 months | ≈ ₹3,040 |
| ₹2,000 | 6% | 6 months | ≈ ₹12,211 |
| ₹500 | 7% | 12 months | ≈ ₹6,234 |
| ₹1,500 | 9% | 6 months | ≈ ₹9,237 |
What the RD Calculator Result Does Not Include
An RD calculator shows the maturity value if every instalment is paid on time and the deposit runs its full tenure. Real deposits can differ for a few reasons.
- Tax. RD interest is taxable income in India, and banks may deduct TDS. The RD calculator shows gross interest, so your post-tax return depends on your slab.
- Missed instalments. Most banks charge a penalty for a late monthly payment, and repeated misses can lead to closure.
- Premature withdrawal. Closing early usually earns a lower rate than the one you entered in the RD calculator, minus a penalty.
- Rate category. Senior citizens often get a higher rate, so use the rate that applies to you.
When comparing banks, run the RD calculator with the same deposit and tenure for each rate so only one variable changes. Rules and rates change, so confirm terms with your bank; this is not personalised advice. The recurring deposit overview on Wikipedia explains the product behind the RD calculator.
RD Calculator FAQ
Why does this calculator use quarterly compounding?
Most Indian banks compound recurring deposit interest quarterly rather than monthly or annually, even though you deposit money monthly. This calculator applies that same quarterly-based rate across each monthly installment so the projected maturity value matches how banks actually calculate RD interest.How is a recurring deposit different from a fixed deposit (FD)?
A fixed deposit takes one lump sum upfront and lets it grow for the full term. A recurring deposit instead takes a fixed installment every month, so each deposit earns interest for a different length of time before maturity.What happens if I withdraw my RD before maturity?
Most banks allow premature withdrawal but apply a penalty, usually a reduction in the interest rate you actually earn compared to what was originally quoted. The exact penalty terms vary by bank, so check your RD account’s terms and conditions.Does the interest rate stay the same for the whole tenure?
Typically yes, for a standard RD the rate quoted when you open the account is locked in for the full tenure. This calculator assumes a single fixed annual rate applied consistently across every month of the deposit.Can I enter the tenure in months instead of years?
Yes, use the tenure unit selector to switch between years and months, whichever matches how your bank states the deposit term. Both options feed into the same monthly compounding calculation behind the scenes.Is tax deducted from the interest earned on an RD?
In many cases, banks deduct tax at source once interest earned crosses a certain threshold, and RD interest is generally taxable as income. This calculator shows gross interest earned only — check with your bank or a tax advisor for your actual after-tax return.Related Calculators
If you’re comparing a recurring deposit against other ways to grow your savings, the SIP calculator shows how a monthly investment in mutual funds might compare, while the compound interest calculator is useful for modeling a lump-sum deposit instead. The interest rate calculator can also help you work backward from a target maturity amount to the rate you’d need.