About the RD Calculator
An RD calculator shows what a recurring deposit pays when you save a fixed amount every month. Banks compound RD interest quarterly. ₹5,000 a month for 24 months at 6.5% matures at ₹1,28,425: ₹1,20,000 deposited plus ₹8,425 interest.
How it is calculated
Maturity = Σ D × (1 + r/4)^(4 × m/12)
- D is the monthly deposit and r the annual rate as a decimal.
- m is the number of months each deposit stays invested: the first deposit stays for the full tenure, the last for one month.
- Each deposit compounds quarterly, the method Indian banks use.
Worked example
Inputs: ₹5,000 a month for 24 months at 6.5%.
Result: Maturity value ₹1,28,425, interest ₹8,425.
Rules and assumptions
- RD interest is taxed at your slab rate, and TDS applies on the same basis as FDs.
- Missing an instalment usually attracts a small penalty, and several missed instalments can close the RD.
Frequently asked questions
How is RD interest calculated?
Each monthly deposit earns compound interest, compounded quarterly, for the months it stays in the account. The calculator adds them up.
Is an RD better than a SIP?
An RD gives a fixed, guaranteed return; a SIP in an equity fund can earn more over long periods but can also fall in value. Many people use an RD for short-term goals.
Is RD interest taxable?
Yes, at your income tax slab rate.