RD Calculator
See how your monthly Recurring Deposit grows to maturity
ChatGPT
Perplexity
GrokGrowth over tenure
Results are estimates for illustration only, based on the inputs and assumptions you enter. They are not a guarantee of returns or an offer of any product. Rates for government schemes are revised periodically - please verify current rates before investing.
How the RD calculator works
A Recurring Deposit lets you save a fixed amount every month for a chosen period at a fixed interest rate. It builds a disciplined savings habit for people who can't invest a large lump sum at once.
This calculator follows the method used by Indian banks: each monthly instalment earns interest, compounded quarterly, for the months it remains in the account.
Worked example
Depositing ₹5,000 every month for 5 years at 7% p.a. adds up to ₹3,00,000 of deposits and matures at about ₹3,59,664 - around ₹59,664 of interest.
Things to keep in mind
- RD interest is taxable at your slab rate and TDS applies above the threshold, just like FDs.
- Missing instalments can attract a penalty, and repeated misses may lead the bank to close the RD.
- For long-term goals, a SIP in a suitable mutual fund has historically offered higher growth potential than an RD - with market risk.
Formula used
- M
- Maturity value
- R
- Monthly instalment
- r
- Annual interest rate (as a decimal)
- k
- Months a given instalment stays invested
- N
- Total number of instalments
Frequently asked questions
What is the minimum tenure for an RD?
Most banks offer RDs from 6 months to 10 years, and post office RDs run for 5 years.
Can I withdraw my RD early?
Yes, usually with a penalty on the interest rate. Some banks allow loans against an RD instead.
RD or SIP - which is better?
An RD gives a fixed, predictable return. A SIP in a mutual fund can offer higher long-term growth but returns vary with markets. Many savers use RDs for short goals and SIPs for long ones.
Turn these numbers into a plan
Talk to us and we'll help you build an investment plan around your result.