RD Calculator: Calculate Recurring Deposit Maturity & Interest Online
RD Calculator
Recurring Deposit Maturity & Interest
Calculate your Recurring Deposit maturity amount, total interest earned, post-tax returns, inflation-adjusted real value, and full year-by-year schedule.
RD Calculator
Monthly Deposit • Rate • Tenure
Enter your RD details or choose a preset
to see projected results
💸 Illustrative Tax Estimation
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What is an RD Calculator and Why Use It?
A Recurring Deposit (RD) Calculator is a specialized online financial tool designed to help savers instantly calculate the maturity amount and total interest earned on regular monthly deposits. Unlike fixed deposits where you invest a lump sum upfront, an RD enables disciplined saving by contributing a fixed amount every month while earning compound interest.
The Mathematical Formula for Recurring Deposit
Recurring Deposit interest in conventional banking is typically compounded quarterly. The mathematical formula to compute RD maturity is expressed as:
📐 RD Maturity Formula
Where:
M = Maturity Amount | P = Monthly Deposit Amount | r = Quarterly Interest Rate (Annual Rate / 4 / 100) | n = Total number of quarters
Step-by-Step Calculation Example
Let us walk through a practical scenario to illustrate how your money compounds in a recurring deposit:
- Monthly Deposit (P): ₹5,000
- Interest Rate (p.a.): 7.0%
- Tenure: 5 Years (60 Months / 20 Quarters)
- Compounding: Quarterly
Over 5 years, your total principal investment equals ₹3,00,000 (₹5,000 × 60). Due to quarterly compounding, the cumulative interest earned amounts to approximately ₹59,850, bringing your projected maturity corpus to approximately ₹3,59,850.
Taxation & TDS on Recurring Deposits
It is important to remember that interest earned on Recurring Deposits is fully taxable according to your applicable income tax slab under "Income from Other Sources". Under Section 194A of the Income Tax Act, banks will deduct Tax Deducted at Source (TDS) at 10% if your aggregate interest earnings across the bank exceed ₹40,000 in a financial year (enhanced to ₹50,000 for senior citizens).
RD vs FD Comparison
| Feature | Recurring Deposit (RD) | Fixed Deposit (FD) |
|---|---|---|
| Deposit Frequency | Regular monthly installments | One-time lump-sum deposit |
| Best Suited For | Salaried individuals saving monthly | Deploying accumulated lump sums |
| Minimum Investment | As low as ₹100 per month | Typically ₹1,000 upwards |
| Interest Rate | Generally identical to corresponding FD rates | Higher rates for bulk lump sums |