Recurring Deposit Calculator

What Is a Recurring Deposit (RD) Calculator?

A Recurring Deposit (RD) Calculator is a powerful online tool designed to estimate your expected returns on monthly recurring investments. With just a few inputs—monthly deposit, interest rate, and duration—you can instantly calculate your maturity amount and total interest earned. This removes guesswork and helps you plan your savings more effectively.

Why Use a Recurring Deposit Calculator?

• ✅ Precise estimate of maturity amount and interest earned
• ✅ Compare investments across different banks or tenures
• ✅ Plan short-term goals like vacations, gadgets, or festivals
• ✅ No complex maths—just instant results
• ✅ Great for financial planning and tracking savings

How Does a Recurring Deposit Work?

A Recurring Deposit lets you deposit a fixed amount every month into your account for a predetermined period. The bank offers interest on your deposits, and this interest is compounded periodically—commonly quarterly in India. Over time, your contributions and earned interest grow your overall corpus.

What Formula Is Used?

We use the standard RD maturity formula:
Maturity Amount = P × n + P × n(n + 1)/2 × r/1200
Where:
P = Monthly deposit amount
n = Number of months
r = Annual interest rate (%)

Sample RD Calculation

Suppose you invest ₹2,000 every month for 3 years (36 months) at an annual interest rate of 7.5%. Using the formula:

• P = ₹2,000
• n = 36 months
• r = 7.5%

Total invested = ₹2,000 × 36 = ₹72,000.
Interest = ₹2,000 × 36 × 37 ÷ 2 × 7.5 ÷ 1200 ≈ ₹5,010.
Maturity amount ≈ ₹77,010.

Your monthly contributions plus interest gives you a healthy future savings.

Benefits of Recurring Deposits

• Discipline: Encourages habitual savings.
• Low Risk: FD and RD accounts are backed by insurance.
• Flexible Durations: Choose 6 months to 10 years.
• Low Entry Amounts: Ideal for even small budgets.
• No Market Risk: Fixed interest guarantees.

Uses of RD Calculator

• Plan short-term savings like festivals, gadgets, or travel.
• Compare bank RD interest rates.
• Track your total investment vs. returns.
• Decide monthly contribution for a future goal.

Factors That Affect RD Returns

1. Monthly Deposit: More you save, more maturity amount.
2. Tenure: The longer the duration, the higher the returns.
3. Interest Rate: Varies across banks and tenures.
4. Compounding Frequency: Quarterly is common in India.

Tips to Maximise RD Returns

• Pick banks offering higher interest rates.
• Ladder multiple RDs with different tenures.
• Reinvest matured RD or switch to FD for better rates.
• Track cumulative interest earned over time.

Common Questions About Recurring Deposits

🔹 What is a Recurring Deposit (RD)?

RD is a term deposit option where you deposit a fixed amount every month for a fixed period and earn interest.

🔹 How is RD different from Fixed Deposit (FD)?

RD allows regular monthly investments while FD is a lump sum deposit. RD interest is paid at maturity, compounding quarterly; FD depends on the chosen tenure.

🔹 Can I withdraw before maturity?

Premature withdrawals are allowed but usually incur penalties and reduce interest earnings.

🔹 Is RD taxable?

Yes. RD interest is taxable each year as per your income tax slab and TDS may apply if interest exceeds ₹40,000 (₹50,000 for senior citizens).

🔹 How often is interest paid? Is there monthly payout?

RD interest is compounded quarterly, not paid monthly. At maturity, you receive total principal + interest.

🔹 Can I recast or pause my RD? What if I miss a deposit?

Many banks allow pausing or adjusting RD; contact bank. Missing a deposit may result in penalties or lower interest—check your terms.

Why Use This RD Calculator?

Save time, eliminate guesswork, and make informed decisions using our easy and accurate tool. No registration needed, works on mobile devices, and completely free—perfect for salary earners, students, or anyone saving systematically.

Conclusion

Recurring Deposits offer a secure and disciplined way to build savings. Use our Recurring Deposit Calculator to estimate your maturity amount today, plan your monthly savings, and stay on track toward your goals—whether short-term or long-term.