RD Calculator
Calculate the maturity value of a recurring deposit with quarterly compounding, as banks and India Post do, with a year-wise growth table.
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Tool guide
What this tool does
The RD Calculator works out what your monthly recurring deposit will be worth at maturity. Each instalment compounds quarterly (or at your chosen frequency) for the months it stays invested, and the tool shows total deposits, interest earned and the balance at the end of each year.
A recurring deposit lets you save a fixed amount every month at a rate fixed when you open the account. It suits people who want FD-like safety but cannot invest a lump sum. Because each instalment is invested for a different length of time, the first deposit earns interest for the full tenure while the last earns it for only one month, so the maturity value is not a simple multiplication.
The calculator sums every instalment separately: maturity = Σ R × (1 + r/n)^(n·k/12) for k = 1 to N months, where R is the monthly deposit, r the annual rate and n the compounding frequency. With quarterly compounding this matches the formula banks publish, M = R × [(1 + i)^q − 1] ÷ (1 − (1 + i)^(−1/3)) with i = r/4. Deposits are assumed to be paid on time at the start of each month.
How to use RD Calculator
- Choose the currency and enter the monthly deposit.
- Enter the RD interest rate offered by your bank or post office.
- Enter the tenure in months, for example 60 for a five-year post office RD.
- Keep quarterly compounding unless your bank states otherwise.
- Switch on Senior citizen rate if eligible and enter the additional rate.
- Read the maturity value and interest, and check the stacked chart and the year-wise table.
Tips for better results
- Set up an auto-debit for the RD on the day after your salary arrives so you never miss an instalment.
- Missed instalments usually attract a small penalty and reduce the maturity value, so the result assumes a perfect record.
- If you can invest the whole amount now, an FD at the same rate earns more because all the money is invested for the full term.
Common use cases
- Saving monthly towards a known expense such as school fees or a holiday.
- Estimating the payout of a five-year India Post recurring deposit.
- Teaching a teenager about regular saving with a guaranteed rate.
- Comparing an RD with a debt-fund SIP for a short-term goal.
Common mistakes to avoid
- Calculating interest as if every instalment earned it for the full tenure.
- Ignoring tax: RD interest is taxable at your slab rate and TDS can apply.
- Choosing a tenure longer than the goal and paying a premature-closure penalty later.
Frequently asked questions
How is RD interest calculated?
Each monthly instalment earns compound interest, usually compounded quarterly, for the time it remains in the account. The maturity value is the sum of all instalments with their individual interest.
What is the RD formula used by banks?
For quarterly compounding banks use M = R × [(1 + i)^q − 1] ÷ (1 − (1 + i)^(−1/3)), where R is the monthly instalment, i the quarterly rate and q the number of quarters. This tool gives the same result.
Is a recurring deposit better than an FD?
At the same rate an FD earns more because the entire sum is invested from day one. An RD is useful when you are saving from monthly income rather than investing a lump sum.
Can I see how much interest I earn each year?
Yes. The table lists total deposits, interest accrued and the balance at the end of each year, and you can download it as a CSV file.
Feedback & suggestions
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