RD Calculator
Calculate recurring deposit maturity value, interest earned, and year-wise monthly saving growth.
Last updated: May 6, 2026
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Compounding frequency
Maturity value
₹7,19,328
Your monthly deposits grow to ₹7,19,328 after earning ₹1,19,328 in interest.
₹1,19,328(+19.9%)
₹5,37,524
Real gain after inflation: -₹62,476
Maturity breakdown
RD maturity curve
See how monthly deposits and compounding build your maturity value.
RD wealth builds in two layers: your monthly deposits create the base, and compounding gradually adds interest on the growing balance.
| Year | Deposited Amount | Interest Earned | Maturity Value |
|---|---|---|---|
| Year 1 | ₹1,20,000 | ₹4,621 | ₹1,24,621 |
| Year 2 | ₹2,40,000 | ₹18,198 | ₹2,58,198 |
| Year 3 | ₹3,60,000 | ₹41,373 | ₹4,01,373 |
| Year 4 | ₹4,80,000 | ₹74,837 | ₹5,54,837 |
| Year 5 | ₹6,00,000 | ₹1,19,328 | ₹7,19,328 |
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RD Gyan
Basics
RD Gyan
What an RD calculator helps you understand
An RD (Recurring Deposit) calculator estimates how much your regular monthly deposits can grow into by maturity. It helps you understand total deposits, interest earned, maturity value, and how compounding gradually builds wealth over time.
Recurring deposits are designed for disciplined saving. Instead of investing one large lump sum, you contribute fixed amounts every month and earn interest on the growing balance throughout the selected tenure.
The calculator also helps compare compounding frequencies, estimate inflation-adjusted value, and understand whether your maturity amount is actually increasing purchasing power after accounting for rising prices.
Gyan Nugget
In RD investing, earlier monthly deposits stay invested longer and usually contribute more to total interest growth than deposits added near maturity.
Gyan Insight
RD returns may appear stable, but inflation and taxation can reduce real gains significantly over long periods. Always compare maturity value with today's purchasing power.
Formula
RD maturity formula & calculation
RD interest is calculated separately for each monthly deposit based on how long that deposit remains invested. Earlier deposits stay invested longer and therefore earn more interest than deposits added closer to maturity.
Maturity value = Total deposits + accumulated compound interest
Monthly deposit = Fixed amount invested every month
Interest rate = Annual RD interest rate offered by the bank
Tenure = Total RD duration in months or years
Compounding = Frequency at which interest is added to the balance
Step-by-step RD calculation example
Suppose you deposit ₹10,000 every month for 5 years at an annual interest rate of 7% with quarterly compounding.
Step 1: Calculate total deposits
₹10,000 deposited every month for 60 months:
₹10,000 × 60 = ₹6,00,000
Step 2: Interest is earned on each deposit
The first monthly deposit earns interest for the full 5 years, while the last deposit earns interest for only 1 month before maturity.
Because deposits are added continuously, the RD balance keeps growing throughout the tenure.
Step 3: Apply compounding
Every compounding cycle adds earned interest back into the RD balance, allowing future interest to grow on both deposits and earlier interest.
Step 4: Estimate maturity value
After 5 years, the RD grows to approximately:
Maturity value ≈ ₹7,20,105
Total interest earned:
₹7,20,105 − ₹6,00,000 = ₹1,20,105
Example
RD calculation example
Let’s understand RD calculation with a practical example. Suppose you deposit ₹10,000 every month for 5 years at 7% annual interest with quarterly compounding.
Step 1: Identify the monthly deposit
This is the fixed amount you invest every month in the recurring deposit.
Monthly deposit = ₹10,000
Step 2: Calculate total deposits
Since the RD runs for 5 years, you make 60 monthly deposits.
Total deposits = ₹10,000 × 60 = ₹6,00,000
Step 3: Apply the interest rate
The annual interest rate is 7%. Interest is calculated on the growing RD balance based on how long each monthly deposit remains invested.
Annual interest rate = 7%
Step 4: Understand the compounding effect
With quarterly compounding, interest is added back to the RD balance four times a year. Earlier deposits earn interest for longer, while later deposits earn for a shorter period.
Compounding frequency = Quarterly
Step 5: Estimate the maturity value
After applying interest and compounding over the full tenure, the RD grows to approximately:
Maturity value ≈ ₹7,20,105
Step 6: Calculate interest earned
Interest earned is the difference between the maturity value and total deposits.
Interest earned = ₹7,20,105 − ₹6,00,000
Interest earned ≈ ₹1,20,105
Gyan Nugget
In an RD, early deposits work harder because they remain invested longer. That is why interest becomes more visible in later years as the balance grows.
Gyan Insight
The year-wise projection helps you see how disciplined monthly deposits and compounding together build the final maturity value.
Tips
RD planning tips
Gyan Nugget
Choose a sustainable monthly deposit
Pick an RD amount that comfortably fits your monthly budget. Missing deposits can reduce discipline and affect your savings plan.
Gyan Insight
Compare effective returns, not just rates
Banks may advertise similar RD rates, but compounding frequency and tenure can slightly change the final maturity value.
Gyan Alert
Do not ignore inflation and tax
A good maturity amount may still deliver weak real returns after inflation and income tax are considered.
Gyan Nugget
Match RD maturity with financial goals
Align the RD tenure with planned expenses like education fees, travel, emergency funds, or short-term savings goals.
Common mistakes
Common RD mistakes
Recurring deposits are simple savings products, but poor planning can still reduce flexibility and weaken real returns over time. These are some common RD mistakes investors should avoid.
Ignoring tax on RD interest
RD interest is taxable according to your income tax slab. The final maturity amount may look attractive, but post-tax returns can be much lower.
Choosing tenure without checking liquidity needs
Locking money into a long RD without considering future cash needs can create liquidity pressure or force premature closure.
Comparing RD returns directly with SIP returns
RD and SIP investments carry very different risk profiles. SIPs are market-linked and volatile, while RD returns are relatively stable and predetermined.
Looking only at nominal maturity value
A higher maturity amount does not always mean stronger real growth. Inflation can significantly reduce actual purchasing power over long tenures.
Gyan Nugget
RDs work best for disciplined short-to-medium-term saving goals where predictable returns matter more than aggressive wealth growth.
Gyan Alert
Stable returns do not automatically mean strong wealth creation. Always compare RD returns with inflation and post-tax returns before investing.
Comparison
RD vs FD vs SIP
RD, FD, and SIP serve different financial purposes. The right choice depends on whether you want disciplined monthly saving, stable fixed returns, or long-term market-linked wealth creation.
| Option | How money is invested | Best for | Return style |
|---|---|---|---|
| RD | Fixed monthly deposits | Disciplined short-to-medium-term saving goals | Relatively stable and predictable bank interest |
| FD | One-time lump sum deposit | Parking surplus money with fixed maturity planning | Stable fixed interest with low volatility |
| SIP | Regular investment into mutual funds | Long-term wealth creation and inflation-beating growth | Market-linked returns with higher risk and volatility |
Gyan Nugget
RD works well when you want disciplined monthly saving with predictable returns, while SIP is usually more suitable for long-term inflation-beating wealth creation.
Gyan Alert
Comparing RD returns directly with SIP returns without considering risk, volatility, and investment horizon can lead to misleading conclusions.
RD FAQ
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