What is the RD Calculator?
A Recurring Deposit (RD) lets you save a fixed amount every month for a chosen tenure — typically 6 months to 10 years — at a guaranteed interest rate. It is the ideal first step for salaried savers who cannot invest a lump sum but want assured, market-independent returns.
Indian banks and India Post compound RD interest quarterly. This calculator replicates that convention: your deposits accumulate monthly, and interest is credited to the balance every quarter. RD rates generally match FD rates for the equivalent tenure, around 6.5%–7.5% p.a. currently.
RD Calculator Formula & How It Works
- M = Maturity value
- P = Monthly deposit
- r = Annual interest rate
- n = Tenure in months
Each monthly instalment earns interest from the month it is deposited until maturity, with the balance compounding every quarter. Earlier instalments therefore earn more interest than later ones, which is why doubling the tenure more than doubles the interest earned.
Worked Examples
₹5,000 per month for 5 years at 7%
Total deposits of ₹3 lakh grow to approximately ₹3.59 lakh — around ₹59,000 of interest.
₹2,000 per month for 2 years at 6.5%
You deposit ₹48,000 and receive roughly ₹51,400 at maturity.
Expert Tips
- Set the RD debit date right after your salary date to automate the saving habit.
- For goals 5+ years away, compare an RD against a SIP — equity SIPs have historically returned more, at higher risk.
- Missing instalments attracts small penalties and can reduce the effective yield; choose an amount you can sustain.