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. Use our RD Calculator to estimate your costs.
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're 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.
How the RD Maturity Formula Works
The calculator applies the standard recurring deposit formula: maturity = monthly deposit × [((1 + i)^n - 1) / i], where i is the monthly interest rate (annual rate divided by 12) and n is the number of monthly instalments. Because each instalment earns interest for a different number of months, the first deposit compounds for the full tenure while the last earns almost nothing — the formula captures that staggered growth in one expression.
Work through Rs 2,000 per month at 6.5% for 2 years. The monthly rate is 6.5% / 12 = 0.0054167 and there are 24 instalments, so the maturity is 2,000 × [((1.0054167)^24 - 1) / 0.0054167] = Rs 51,118. Your total deposits are Rs 48,000, leaving Rs 3,118 in interest. Stretch the same deposit to 10 years and the maturity rises to about Rs 8,42,000 against Rs 6,00,000 deposited — roughly Rs 2,42,000 of interest, which shows how the extra months of compounding on early instalments dominate the total.
- The tenure field counts in years and multiplies by 12 internally, so 5 years means 60 instalments — every instalment is assumed paid on time for the formula to hold.
- Increasing your monthly deposit by 50% raises both deposits and interest proportionally, but lengthening tenure does more because the final instalments still compound.
- The displayed rate is the nominal annual rate; quarterly compounding at the bank means the effective annual return is a fraction of a percentage point higher.
- Use the calculator to compare two tenures at the same monthly amount and note that the interest-to-deposit ratio climbs sharply as tenure grows.
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Written by the CalcMaster Pro Editorial Team — financial, health, and DIY tools reviewed for accuracy. All calculators run on standard, widely accepted formulas. Always confirm final numbers with a qualified professional for decisions that require official figures.