๐Ÿ” RD: Calculator

Estimate your Recurring Deposit maturity value and interest earned.

₹
%
months
MATURITY VALUE
₹0
over 12 months
Total Invested
₹0
Interest Earned
₹0
Uses the standard Indian-bank RD formula with quarterly compounding. Actual bank payouts may vary slightly by a few rupees depending on each bank's exact day-count convention.

How the RD Calculator Works

A Recurring Deposit (RD) lets you invest a fixed amount every month for a chosen tenure, earning compound interest similar to a Fixed Deposit. Indian banks compound RD interest quarterly, and this calculator uses the standard formula published by Indian banks for RD maturity value.

Maturity Value = R × [(1+i)ₙ − 1] ÷ [1 − (1+i)⁻¹⁄³]
where R = monthly installment, i = annual rate ÷ 400 (quarterly rate), n = number of quarters

Why Quarterly Compounding?

Unlike a Fixed Deposit where the whole amount is deposited once, an RD receives fresh money every month, each installment earning interest for a different length of time. Banks handle this by compounding quarterly on the running balance, which is what the formula above models.

RD vs. FD vs. SIP

An RD is best suited for building a savings discipline with guaranteed, bank-set returns — unlike an FD (a one-time lump sum) or a SIP into mutual funds (market-linked, with potentially higher but variable returns).

๐Ÿ“Ž Related Tools: FD Calculator SIP Calculator Savings Calculator Compound Interest Calculator

โ“ Frequently Asked Questions

How is RD interest calculated?
RD interest is compounded quarterly using the formula M = R ร— [(1+i)โฟ โˆ’ 1] รท [1 โˆ’ (1+i)โปยนแŸยณ], where R is your monthly installment, i is the quarterly interest rate (annual rate รท 400), and n is the number of quarters in your tenure.
What's the minimum RD tenure?
Most Indian banks offer RD tenures ranging from 6 months to 10 years, in multiples of 3 months, though some banks allow shorter or more flexible tenures.
Can I withdraw my RD before maturity?
Yes, premature withdrawal is usually allowed but typically comes with a penalty โ€” a reduced interest rate compared to what you'd have earned by holding the RD to maturity, as set by the bank's policy.
Is RD interest taxable?
Yes, RD interest is fully taxable as โ€œIncome from Other Sourcesโ€ at your income tax slab rate, and banks deduct TDS if the total interest exceeds โ‚น40,000 in a financial year (โ‚น50,000 for senior citizens), similar to FDs.
Why might my bank's RD calculator show a slightly different maturity value?
Different banks may use slightly different day-count conventions or rounding methods when crediting quarterly interest, so real payouts can differ by a small amount from this calculator's standard-formula estimate. Always confirm the exact figure with your bank.

๐Ÿ† About This Tool โ€” Accuracy & Trust

๐Ÿ”’ Data Privacy: All calculations run entirely within your browser using JavaScript. Nothing you enter here is ever transmitted to our servers, stored, sold, or shared.

๐Ÿ“ Accuracy Note: This tool uses standard, widely published formulas and guidelines. Results are estimates for informational purposes; for financial, medical, or engineering decisions, consult a licensed professional.

๐Ÿ“… Last Updated: September 2026.