RD Calculator

Recurring Deposit (RD) is a type of term deposit offered by banks and financial institutions in India where you deposit a fixed amount every month for a predetermined period. RDs are designed to help individuals build savings discipline while earning guaranteed returns with compound interest.

RD works by:

• Making fixed monthly deposits (e.g., $5,000, $10,000) for a chosen tenure
• Earning compound interest on your deposits
• Receiving the maturity amount (principal + interest) at the end of the tenure

RDs are ideal for:

• Regular income earners who want to save monthly
• Building emergency funds or savings for specific goals
• Creating disciplined savings habits
• Earning guaranteed returns with low risk
• Tax-saving under Section 80C (for 5-year RDs)

Our free RD calculator helps you plan your recurring deposit investments by calculating the maturity amount and interest earnings before you open an RD account.

Our RD calculator uses compound interest formula to calculate your recurring deposit maturity amount:

RD Calculation Formula:

Maturity Amount = P × [((1+r/n)^(n×t) - 1) / (1 - (1+r/n)^(-1/3))] × (1+r/n)

Where:

• P = Monthly deposit amount
• r = Annual interest rate (as decimal)
• n = Compounding frequency (usually 4 for quarterly)
• t = Tenure in years

Example Calculation:

Monthly Deposit = $10,000

Interest Rate = 6.5% per annum

Tenure = 24 months (2 years)

Compounding = Quarterly

The calculator accounts for:

• Each monthly deposit earning interest for different periods
• Quarterly compounding of interest
• Total deposits made over the tenure
• Final maturity amount including all interest

Maturity Amount ≈ $2,58,000 (Total Deposits: $2,40,000 + Interest: $18,000)

The calculator automatically handles these complex calculations and provides detailed breakdowns.

Using an RD calculator offers several advantages:

Financial Planning: Calculate your RD maturity amount before opening an account to plan your savings goals. See how much you'll receive at maturity and how much interest you'll earn.

Compare Options: Compare RDs from different banks with varying interest rates and tenures. Find the best RD option that maximizes your returns.

No Login Required: Our RD calculator is completely free and doesn't require any registration. Use it unlimited times to calculate RD returns for different scenarios.

Accurate Calculations: Get precise calculations based on standard banking formulas used by all major banks in India including SBI, HDFC, ICICI, and others.

Flexible Tenure: Calculate RD returns for any tenure from 6 months to 10 years. The calculator supports monthly deposits and quarterly compounding.

Visual Breakdown: View charts showing total deposits vs interest earned, helping you understand how your RD grows over time.

While our calculator does this automatically, here's how RD interest is calculated:

RD Interest Calculation:

RD interest is compounded quarterly. Each monthly deposit earns interest for different periods:

• First deposit earns interest for the full tenure
• Second deposit earns interest for (tenure - 1 month)
• And so on...

Manual Example:

Monthly Deposit = $5,000

Rate = 7% per annum

Tenure = 12 months

Since interest compounds quarterly, the calculation is complex. The formula accounts for:

1. Each monthly deposit's contribution
2. Quarterly compounding periods
3. Different interest periods for each deposit

Simplified Calculation:

Total Deposits = $5,000 × 12 = $60,000

Approximate Interest (7% compounded quarterly) ≈ $2,100

Maturity Amount ≈ $62,100

Our calculator automates this complex calculation with precise quarterly compounding, making RD planning much easier.