What is an RD calculator?
A recurring deposit (RD) calculator estimates how much your monthly bank deposits will grow to at maturity. Unlike an FD where you invest once, an RD requires a fixed installment every month for the chosen tenure.
RDs help build a regular savings habit with predictable returns. Interest is typically compounded quarterly, and the rate is fixed at account opening.
How can an RD calculator help you?
RD maturity math involves summing each monthly installment grown over its remaining tenure with quarterly compounding—a tedious calculation by hand.
- See total invested versus interest earned before starting an RD.
- Compare monthly deposit amounts and tenures for a target corpus.
- Contrast RD returns with mutual fund SIP using the <a href="/calculators/sip/">SIP calculator</a>.
How does this RD calculator work?
Each monthly deposit earns interest with quarterly compounding. For month M (1 through total months), the installment grows by (1 + r/400)^(4 × M/12). The running total is rounded to whole rupees after each deposit—the same method Groww uses in its RD calculator.
A = Σ round(… P × (1 + r/400)^(4M/12) …) for M = 1 to n
- A
- Total maturity amount
- P
- Monthly deposit (each installment)
- r
- Annual interest rate in percent
- M
- Month index (1 to tenure in months)
- n
- Total months in the tenure
Example: ₹5,000/month for 1 year at 8% → A ≈ ₹62,646
How to use this RD calculator
Enter monthly investment, rate of interest (p.a.), and time period in years. Results show invested amount, estimated returns, and total value.
For a one-time deposit, use the FD calculator.
What this calculator does not include
TDS on interest, missed-installment penalties, and mid-tenure rate changes are not modeled. All deposits are assumed equal and on time each month.
Frequently asked questions
How is RD interest calculated in India?
Banks typically compound RD interest quarterly on each installment for its remaining tenure. This calculator follows that standard method.
Is RD better than SIP?
RDs offer fixed, guaranteed returns suited to conservative savers. SIPs in mutual funds carry market risk but may deliver higher long-term returns. The right choice depends on your risk tolerance and goals.
Does this calculator deduct TDS?
No. TDS rules on RD interest vary by bank and your tax profile. Consult your bank or a tax professional for net returns after tax.