RD Calculator

How the RD Calculator Works

Enter the amount you plan to deposit every month, the annual interest rate your bank offers, and the tenure in months.

Banks commonly compound RD interest quarterly. This calculator simulates your deposits month by month and applies quarterly compounding to the running balance, the same approach most bank RD calculators use.

You'll see your total deposited amount, the interest earned on top of it, and the final maturity value at the end of the tenure.

Benefits of a Recurring Deposit

• Builds a savings habit: because a fixed amount is set aside every month, an RD encourages disciplined, regular saving even if you don't have a large lump sum to invest upfront.
• Predictable, guaranteed returns: your interest rate is fixed at the time you open the RD, so the maturity value is known in advance and isn't affected by market ups and downs.
• Low entry barrier: most banks let you start an RD with a small monthly amount, making it accessible even for those just starting to save.
• Flexible tenure: RDs are typically available from 6 months up to 10 years, so you can pick a tenure that matches a specific near-term goal.
• Loan and overdraft facility: many banks let you borrow against your RD balance, giving you a way to access funds without breaking the deposit early.

Formula Used

Example Calculation

Important Assumptions

• Interest is assumed to compound quarterly on the running balance, matching common bank RD conventions — some banks may use a slightly different method.
• Deposits are assumed to be made on time every month for the full tenure, with no missed instalments or penalties.
• This calculator doesn't account for tax on the interest earned — RD interest is generally taxable, so check the rules that apply where you bank.
• Any penalty for closing the RD early is not factored into this calculation.

Frequently Asked Questions