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How to Use the RD Calculator
A recurring deposit turns a monthly habit into a lump sum: you put in the same amount every month, the bank adds compound interest, and at maturity you collect deposits plus interest. Enter your monthly deposit, your bank's annual interest rate and the tenure in months, then press Calculate Maturity to see the maturity value, total deposited and interest earned.
The year-by-year table shows the most useful insight about RDs: money deposited early earns interest for years, while money deposited near the end earns almost nothing. That is why a longer tenure grows your corpus much faster than a slightly higher rate — time in the scheme beats a small rate difference.
One caveat: the rate you enter is everything. Banks pay different RD rates, senior citizens often get a little extra, and rates change — so use your bank's current rate, not a rate from an old article. The result is also before tax: RD interest is taxable income, so your after-tax maturity will be lower.
If you already have a lump sum instead of a monthly income, compare with our FD Calculator — a fixed deposit on the same money usually matures higher because the whole amount earns interest from day one. For market-linked monthly investing, see our SIP Calculator.
Frequently Asked Questions
What is a recurring deposit (RD)?
A recurring deposit is a bank or post-office savings scheme where you deposit a fixed amount every month for a fixed tenure. At maturity you get back all your deposits plus the interest earned on them.
How is RD maturity calculated?
Most Indian banks compound RD interest quarterly. This calculator uses the standard formula M = P x [(1 + i)^N - 1] / [1 - (1 + i)^(-1/3)], where P is the monthly deposit, i is the quarterly rate (annual rate divided by 400) and N is the number of quarters.
What is the minimum deposit and tenure for an RD?
It varies by bank. Post Office RDs start at Rs. 100 per month and many banks start at Rs. 500 or Rs. 1,000 per month. Tenures typically run from 6 months to 10 years — check your bank's current terms before opening one.
RD vs FD — which is better?
An RD suits a regular monthly income because you build the corpus bit by bit; an FD suits a lump sum you already have. The interest rates are usually similar, so the choice depends on whether your money arrives monthly or all at once.
Is RD interest taxable?
Yes. RD interest is taxed as income from other sources at your slab rate, and banks may deduct TDS if interest crosses the threshold. This calculator shows interest before tax — your take-home maturity will be lower after tax.
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