RD Calculator

The RD Calculator shows the maturity value of a recurring deposit. It calculates how your monthly deposits grow with compound interest over the chosen tenure.

RD Calculator

Currency
$

How much you deposit every month.

%

The annual RD interest rate.

years

How long you will deposit.

What the result means

The maturity value is the total amount you receive at the end of the RD tenure. It includes all your monthly deposits plus the interest earned through quarterly compounding.

How to use this calculator

  1. 1Enter your monthly deposit amount.
  2. 2Enter the RD interest rate.
  3. 3Enter the tenure in years.
  4. 4Press Calculate to see your maturity value.

The formula

The calculation uses a standard, verifiable formula. Here it is in its simplest form.

Maturity = R × ((1 + i)ⁿ − 1) / i × (1 + i) Where: R = Monthly deposit i = Monthly interest rate (annual ÷ 12 ÷ 100) n = Number of months

What each variable means

SymbolNameDescription
RMonthly depositThe amount deposited each month.
iMonthly rateAnnual rate divided by 12 and 100.
nMonthsTotal number of monthly deposits.

Step-by-step example

Example: ₹2,000/month at 6.5% for 5 years

Monthly deposit:₹2,000Rate:6.5%Tenure:5 years
  1. 1Monthly rate = 6.5% / 12 = 0.5417% = 0.005417
  2. 2Months = 5 × 12 = 60
  3. 3Maturity = 2,000 × ((1.005417)⁶⁰ − 1) / 0.005417 × 1.005417
  4. 4(1.005417)⁶⁰ ≈ 1.3825
  5. 5Maturity ≈ 2,000 × 70.62 × 1.005417 ≈ ₹1,41,982
  6. 6Total deposited = ₹2,000 × 60 = ₹1,20,000
  7. 7Interest = ₹1,41,982 − ₹1,20,000 = ₹21,982

Result

Maturity value ≈ ₹1,41,982

What changes the result

  • Higher monthly deposits increase maturity value proportionally.
  • Higher interest rates increase returns.
  • Longer tenures allow more compounding.

Edge cases to be aware of

Unusual situations handled correctly

  • Zero interest means maturity equals total deposited.
  • Very long tenures can significantly boost returns.

Common mistakes

Avoid these errors

  • Confusing RD with FD - RD involves monthly deposits.
  • Forgetting that RD interest is taxable.

Assumptions

  • Equal monthly deposits throughout the tenure.
  • Interest rate remains constant.
  • No premature withdrawal.

Limitations

  • Does not account for TDS on interest.
  • Actual rates vary by bank.

Frequently asked questions

What is a recurring deposit?+
A recurring deposit (RD) is a savings product where you deposit a fixed amount every month for a fixed period. It earns compound interest and is considered a low-risk investment.
How is RD different from FD?+
In an FD, you deposit a lump sum once. In an RD, you deposit a fixed amount every month. Both earn compound interest, but RDs are designed for regular savers.

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