About the RD Calculator
What is the RD Calculator?
A Recurring Deposit (RD) lets you save a fixed amount every month and earn fixed-deposit-like interest on it. It suits people who want guaranteed returns but can only save monthly, such as salaried savers building a fund for a planned expense.
Enter your monthly deposit, the interest rate and the tenure in years. Like banks, the calculator compounds interest quarterly: each instalment earns interest for the months it stays deposited. It shows the maturity value, the total deposited and the interest earned.
How to use the RD Calculator
- Monthly Deposit (₹) (sample: 5,000)
- Interest Rate (% per year) (sample: 7)
- Tenure (Years) (sample: 5)
- Press Calculate RD (results also refresh as you type). The result card shows the Maturity Value, along with Total Deposited and Interest Earned.
Formula used
M = Σ R × (1 + r ÷ 4)^(m ÷ 3)
- R = the monthly deposit
- r = the annual interest rate (as a decimal)
- m = the number of months each instalment stays invested (N for the first, 1 for the last)
The sum runs over every instalment. This is the quarterly-compounding method used by most Indian banks and the post office.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Monthly Deposit (₹) | 5,000 |
| Interest Rate (% per year) | 7 |
| Tenure (Years) | 5 |
| Result | Value |
|---|---|
| Maturity Value | ₹3,59,664 |
| Total Deposited | ₹3,00,000 |
| Interest Earned | ₹59,664 |
Tips for using the RD Calculator
- RD interest is taxable at your slab rate, and TDS applies once interest crosses ₹50,000 a year (₹1 lakh for seniors).
- Missing an instalment usually attracts a small penalty; set up auto-debit.
- For long periods, compare the RD rate with a debt-fund or equity SIP for your risk level.