How is RD maturity amount calculated?

RD maturity is calculated using compound interest on each monthly installment. Each deposit earns interest for the remaining tenure, compounded quarterly. The formula considers each installment separately and sums them up.

Is RD better than FD?

RD is ideal for those who want to save a fixed amount monthly, while FD requires a lump sum. Both offer similar interest rates. RD helps build a savings habit, whereas FD is better if you already have a lump sum to invest.

RD Calculator — Free Online Recurring Deposit Calculator

Deposit Details

Your Results

Total Deposited 0

Total Interest Earned 0

Maturity Amount 0

Yearly Breakdown

Year	Deposits This Year	Interest This Year	Total Deposited	Total Interest	Balance

What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a savings instrument offered by banks and post offices where you deposit a fixed amount every month for a set period. At maturity, you receive the total amount deposited along with compounded interest. RD is ideal for salaried individuals who want to build savings gradually.

Benefits of Recurring Deposit

Disciplined Savings: Monthly deposits create a regular savings habit — ideal for building an emergency fund or saving for goals.
Guaranteed Returns: Unlike market-linked instruments, RD interest rates are fixed for the entire tenure.
Low Minimum Amount: Most banks allow RDs starting from as low as 500 per month.
Flexible Tenure: Choose tenure from 6 months to 10 years based on your financial goal.
Compound Interest: Interest is compounded (usually quarterly) giving you better returns than simple interest.

RD Calculation Formula

Maturity = P × [(1 + r/n)^(n×t) − 1] / [1 − (1 + r/n)^{−1/n×(1/12)}]

Simplified approach: Each monthly installment earns compound interest for its remaining tenure.

P = Monthly deposit amount
r = Annual interest rate / 100
n = Compounding frequency per year
t = Tenure in years

How Our RD Calculator Works

Monthly Deposit: Enter the fixed amount you plan to deposit each month.
Interest Rate: Enter the annual interest rate offered by your bank.
Tenure: Set the deposit period in years.
Compounding Frequency: Choose how often interest is compounded (Monthly, Quarterly, Half-Yearly, or Yearly).
Results: View total deposits, interest earned, maturity amount, and a detailed yearly breakdown.

RD vs FD vs SIP

RD vs FD: RD requires monthly deposits; FD requires a one-time lump sum. Both offer fixed, guaranteed returns.
RD vs SIP: RD offers fixed returns; SIP is market-linked with potentially higher but variable returns.

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