Call NowRD Calculator
Recurring Deposit Calculator is an online tool that calculates the maturity amount, total investment, and interest earned from RD deposits based on the deposit amount, tenure, and interest rate. It helps depositors estimate returns instantly without manual calculations.
How to Use the RD Calculator?
To use an RD Calculator, enter your monthly deposit, interest rate, and tenure to instantly calculate your maturity amount and interest earned.
Follow the steps below for accurate results.
- Step 1: Enter your monthly Recurring Deposit Amount.
- Step 2: Select compounding frequency (Monthly, Quarterly, Half Yearly, Yearly).
- Step 3: Enter the expected annual interest rate (%)
- Step 4: Choose the deposit tenure.
The Calculator will show the total invested amount, interest earned, and maturity amount instantly
Recurring Deposit (RD) Formula
RD maturity is calculated using a compound-interest formula, where each monthly deposit earns interest over time.
The formula used by most RD calculator is:
M = R × [((1 + i)^n – 1) / (1 – (1 + i)^(-1/3))]
Where:
- R = Monthly deposit amount
- i = interest rate
- n = Deposit Duration
- M = Maturity value
Total Interest Earned = Maturity Amount – Total Amount Deposited
Total Amount Deposited = Monthly Instalment × Number of Months
Example: Monthly Compounding of RD ₹5,000/month for 5 years @ 7%
- Monthly deposit: ₹5,000
- Tenure: 5 years (60 months)
- Interest rate: 7% p.a. (compounded quarterly)
- Total Invested = ₹3,00,000
- Interest Earned = ₹58,000
- Maturity Amount = ₹3,58,000
Let's calculate and see more examples with different deposit values and different tenure's
| Monthly Deposit | Rate | Tenure | Maturity Amount |
| ₹2,000 | 7% | 3 Years | ₹88,663.63 |
| ₹5,000 | 7% | 5 Years | ₹4,24,433.46 |
| ₹10,000 | 7.50% | 10 Years | ₹25,22,819.13 |
How is RD Interest Calculated?
RD interest is calculated using compound interest formulae and is usually compounded quarterly (every 3 months) at many of the banks in India. Each monthly deposit earns interest from the time it is invested, and interest is added to the principal on a quarterly basis, allowing the future interest to be calculated on the growing balance method.
Benefits of Using the RD Calculator
An RD calculator helps you easily estimate your maturity amount and plan your monthly savings more effectively.
- Accurate results: Gives precise maturity amount without manual calculations.
- Easy comparison: Helps you compare different tenures and interest rates to choose the best option.
- Better planning: Provides a clear breakdown of returns for smarter financial decisions.
RD vs FD vs SIP – Quick Comparison
| Feature | Recurring Deposit (RD) | Fixed Deposit (FD) | Systematic Investment Plan (SIP) |
| Investment Type | Monthly fixed deposit | One-time lump sum | Monthly investment |
| Risk Level | Very Low | Very Low | Moderate to High (market-linked) |
| Returns | Fixed and predictable | Fixed and predictable | Market-linked (not guaranteed) |
| Interest/Return Type | Compound interest (usually quarterly) | Compound interest | Depends on market performance |
| Best For | Disciplined monthly savings | Parking surplus lump sum | Long-term wealth creation |
| Flexibility | Moderate (fixed monthly commitment) | Low (locked-in amount) | High (can increase/decrease/stop anytime) |
| Liquidity | Moderate (penalty on early withdrawal) | Low (penalty on premature withdrawal) | High (can redeem anytime, except ELSS lock-in) |
| Tenure | 6 months to 10 years | 7 days to 10 years | No fixed tenure (flexible) |
| Returns Potential | Low to Moderate | Low to Moderate | High (long-term) |
Current Bank's RD Interest Rates in 2026
| Bank RD | RD Interest Rates for General Public (per annum) | RD Interest Rates for Senior Citizens (per annum) |
| State Bank of India RD | 6.80% to 7.00% | 7.30% to 7.50% |
| Kotak Mahindra Bank RD | 6.00% to 7.40% | 6.50% to 7.90% |
| ICICI Bank RD | 4.75% to 7.25% | 5.25% to 7.80% |
| HDFC Bank RD | 4.50% to 7.20% | 5.00% to 7.75% |
| IDFC Bank RD | 4.50% to 6.50% | 5.00% to 7.00% |
| Bank of Baroda RD | 4.25% to 7.15% | 4.75% to 7.65% |
| Axis Bank RD | 5.75% to 7.25% | 6.25% to 7.75% |
Why Compounding Frequency Matters in RD?
Compounding frequency determines how often interest is compounded on your RD, directly affecting your total returns. Most RD's use quarterly compounding, which adds interest every 3 months, helping your savings grow faster. Higher compounding frequency increases the effective return and results in a higher maturity amount over time.
Conclusion
An RD Calculator helps depositors to calculate the RD maturity amount, total investment made during the RD, and interest earned based on the interest rate and tenure. It makes the calculation process of RD maturity easier and more straightforward.
Frequently Asked Questions
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