RD Calculator: Calculate Your Recurring Deposit Maturity Amount

A Recurring Deposit (RD) is a popular savings instrument that allows you to invest a fixed amount each month and earn interest at a predetermined rate. RDs are offered by banks and post offices, making them accessible to virtually everyone. Our RD Calculator helps you estimate the maturity amount, total interest earned, and effective returns based on your monthly deposit amount, tenure, and interest rate.

How Recurring Deposits Work

With an RD, you deposit a fixed amount every month for a predetermined period (typically 6 months to 10 years). The bank pays compound interest on your deposits, usually compounded quarterly. At maturity, you receive the total of all your monthly deposits plus the accumulated interest.

The interest rate on RDs varies by bank and tenure, generally ranging from 5% to 8% depending on the financial institution and prevailing market rates. Senior citizens often receive an additional 0.5% interest rate.

Using the RD Calculator

Enter your monthly deposit amount, the RD tenure in months or years, and the annual interest rate. The calculator shows your total maturity amount, total amount deposited, total interest earned, and the effective annualized return.

Try comparing different monthly deposit amounts or tenures: doubling your monthly deposit doubles both your investment and maturity amount, while extending tenure increases returns due to compounding on earlier deposits.

RD vs Other Savings Options

Recurring Deposit

Fixed monthly deposits, guaranteed returns, low risk. Best for disciplined savers who want to build a corpus gradually with predictable returns. Interest rates are fixed at the time of opening.

Fixed Deposit (FD)

Lump sum investment, higher rates for longer tenures. Better if you have a large amount to invest at once. FDs typically offer slightly higher rates than RDs from the same bank.

Systematic Investment Plan (SIP)

Market-linked returns with potential for higher growth but with risk. SIPs in equity mutual funds can outperform RDs over long periods but carry market risk. Better for long-term goals (5+ years).

Savings Account

Lower interest rates (2.5-4%) but complete liquidity. Good for emergency funds but not ideal for goal-based saving.

Benefits of RDs

• Disciplined saving: Automatic monthly deductions build the habit of regular saving
• Guaranteed returns: Fixed interest rate eliminates market uncertainty
• Low minimum: Most banks allow RDs starting at Rs. 500-1,000 per month
• Loan facility: You can take a loan against your RD balance (usually up to 90%)
• Senior citizen benefits: Higher interest rates for senior citizens
• Flexible tenure: Choose from 6 months to 10 years based on your goal timeline

Real-World Example

An RD of Rs. 5,000 per month for 5 years (60 months) at 7% interest compounded quarterly:

• Total deposited: Rs. 5,000 × 60 = Rs. 3,00,000
• Total interest earned: Approximately Rs. 53,500
• Maturity amount: Approximately Rs. 3,53,500
• Effective annual return: ~7% (same as the quoted rate because compounding is built in)

If the same saver increased their monthly deposit to Rs. 10,000, the maturity amount would double to approximately Rs. 7,07,000. Extending the tenure to 10 years at Rs. 5,000 per month would yield approximately Rs. 8.5 lakh due to the additional compounding on earlier deposits.

Start Calculating

Use our RD Calculator below to plan your savings goals. Whether you are saving for a vacation, emergency fund, or down payment, an RD provides a safe and structured way to reach your target. Also check our FD Calculator for lump sum investments and our SIP Calculator for market-linked investment planning.