Recurring Deposit (RD) Calculator
Last Updated: 8 April 2026
RD Calculator
Calculate Recurring Deposit maturity amount
What is RD Calculator?
A Recurring Deposit (RD) Calculator estimates how much your monthly savings will grow over time. RD is a popular investment option in India where you deposit a fixed amount every month for a fixed tenure (e.g., 6 months to 10 years) and earn interest rates similar to Fixed Deposits.
📊 Practical Example
"If you start an RD of ₹5000 per month for 3 years at 7% interest: You will invest a total of ₹1,80,000. The bank will pay you interest roughly around ₹21,000. So, your maturity amount will be approx ₹2,01,000."
⚠️ Common Mistake
Thinking RD interest is tax-free. Interest earned on Recurring Deposits is fully taxable. Also, missing a monthly installment often attracts a penalty.
How it Works & Benefits
Monthly Savings
Plan small monthly deposits to build a big corpus.
Standard Formula
Uses the N(N+1)/24 formula used by most calculators.
Guaranteed Returns
RDs are safe and immune to stock market volatility.
Frequently Asked Questions
Common queries answered for you
An RD is a term deposit where you deposit a fixed amount every month for a pre-decided tenure and earn interest similar to FDs.
Most banks calculate RD interest using the formula: I = P * [n(n+1)/24] * R/100, where P is monthly deposit, n is months, and R is rate.
Yes, just like FDs, interest earned from RDs is fully taxable based on your income tax slab. TDS is also applicable.
If you miss an installment, banks may charge a penalty fee (usually ₹1.50 per ₹100) or close the RD if payments are missed repeatedly.
Additional Information
Why choose RD over SIP?
- Safety: RD returns are guaranteed by the bank. SIP returns depend on the market.
- Liquidity: RDs can be broken instantly (with penalty), while some SIPs (ELSS) have lock-in periods.
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