Recurring Deposit (RD) Calculator
See what your monthly recurring deposit will be worth at maturity. An RD is the disciplined saver's FD — a fixed amount auto-debited every month at a guaranteed rate.
How to use this calculator
- Enter the monthly deposit you'll commit to.
- Enter the bank's RD interest rate.
- Enter the tenure in months (6–120 typically) and press Calculate.
Formula used
Each monthly installment compounds for its remaining months — the first deposit earns interest for the full tenure, the last for just one month. Banks technically compound quarterly; the difference from this monthly model is under 0.5%.
Example calculation
Depositing 5,000/month at 6.8% for 36 months:
Total deposited = 180,000 → maturity ≈ 200,180, earning about 20,180 in interest.
What is a recurring deposit?
A recurring deposit locks you into saving a fixed amount monthly at a fixed rate — essentially an FD you build one installment at a time. It suits salaried savers building toward a known goal: an emergency fund, a down payment, next year's insurance premium.
Because later installments earn interest for less time, an RD's effective return is lower than an FD of the same rate and total amount — the price of not having the lump sum upfront. Missing installments usually incurs small penalties.
Why use this calculator?
- Turn a savings intention into an automatic monthly commitment with a known payoff.
- Compare RD maturity against SIP projections for the same monthly amount.
- Know the exact goal amount and date before you start.
Frequently asked questions
Is RD interest taxable?
Yes — fully taxable as income at your slab rate, and banks deduct TDS if annual interest crosses the threshold. This is RD's biggest disadvantage versus PPF or equity investments.
RD vs SIP — which is better?
RD gives a guaranteed ~6–7.5% and suits short-term goals under 3 years. Equity SIPs historically return more over 5+ years but fluctuate. Match the instrument to the timeline: RD for near goals, SIP for far ones.
What if I miss an RD installment?
Banks charge a small penalty (often ₹1–2 per ₹100 per month of delay) and repeated defaults can close the account. Choose an amount you can sustain even in tight months.