Recurring Deposit (RD) Calculator

What is the Recurring Deposit (RD) Calculator?

A recurring deposit (RD) lets you deposit a fixed amount every month for a chosen tenure, earning a fixed rate of interest on the growing balance. An RD calculator shows the maturity amount and the interest you accumulate, making it easy to plan disciplined monthly savings.

How does it work?

Each monthly deposit earns interest for the remaining months of the tenure, so earlier deposits earn more than later ones. The calculator compounds every instalment over its remaining period and sums them, which is why the maturity value exceeds the simple total of your deposits.

Formula

M = R × [ ((1 + i)^n − 1) / i ] × (1 + i)

• M = maturity amount
• R = fixed monthly deposit
• i = monthly interest rate (annual ÷ 12)
• n = number of monthly deposits

Example calculation

Benefits

• ✓Builds a savings habit with small, fixed monthly amounts.
• ✓Assured returns at a rate fixed when you open the RD.
• ✓Low entry barrier — start with as little as ₹100 a month.

Limitations

• !Returns are modest and may trail inflation after tax.
• !Missing instalments can attract penalties.
• !Premature closure usually reduces the interest rate earned.

Conclusion

A recurring deposit is a safe, structured way to save towards a near-term goal. If you can tolerate market risk for higher potential returns, compare it against a SIP — but for guaranteed outcomes, an RD is hard to beat.