What is an RD Calculator?
An RD calculator works out the maturity value of a recurring deposit, where you deposit a fixed amount every month for a set tenure. It shows your total deposits, the interest earned and the amount you will receive at maturity.
Recurring deposits from banks and the post office are a simple, risk-free way to build savings for near-term goals like a vacation, a gadget or an emergency fund.
How to use the RD Calculator
- 1Enter your monthly deposit amount.
- 2Enter the interest rate offered on the RD.
- 3Choose the tenure in months (typically 6 to 120 months).
- 4See total deposits, interest earned and maturity value.
RD Calculation Formula
- M
- — Maturity value
- R
- — Monthly instalment
- r
- — Annual interest rate (%)
- N
- — Tenure in months; k is each instalment's month number
Every instalment earns quarterly-compounded interest for the months left until maturity, which is how Indian banks calculate RD returns.
Example: ₹5,000 a month at 7% for 5 years
| Total deposited (60 months) | ₹3,00,000 |
|---|---|
| Interest earned | ₹59,664 |
| Maturity value | ₹3,59,664 |
Benefits of a recurring deposit
- Guaranteed returns — the rate is fixed when you open the RD.
- Small monthly amounts — start with as little as ₹100 at many banks.
- Builds discipline — auto-debit makes saving a habit.
- Loan facility — most banks offer a loan or overdraft against your RD.
RD vs SIP
An RD offers safety and certainty, making it ideal for goals within 1–3 years. A mutual fund SIP is market-linked and can be volatile in the short term, but over 5 years or more equity SIPs have historically delivered much higher returns than RDs. Many investors use an RD for short-term goals and a SIP for long-term wealth.
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.