RD calculator: Calculate your recurring deposit returns

Build a corpus brick-by-brick. Calculate the future value of your monthly recurring deposits and track your savings growth.

Last updated: May 2026

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Enter your monthly deposit, interest rate, and tenure to visualize your recurring deposit's growth.

RD Calculator: Calculate your recurring deposit returns

Saving a large lump sum all at once is not always possible. Recurring deposits work around that. You put in a fixed amount every month and the interest rate stays locked from the start. Market conditions do not change what you earn.

Figuring out the exact maturity value manually is tedious because each monthly installment earns interest for a different duration. Put in your planned monthly deposit, the interest rate, and the tenure above to see your maturity amount and total interest instantly.

How can an online RD calculator help you?

Salaried individuals often use recurring deposits to plan for short-term goals. Compounding interest on multiple monthly installments requires advanced calculations to get accurate numbers.

Here is what this calculator does for you.

  • ✓Calculate your exact maturity value and interest returns instantly.
  • ✓Avoid manual compound interest calculation mistakes.
  • ✓Plan systematic savings goals with complete accuracy.
  • ✓Completely free to use with zero logins or registration steps.

This RD calculator removes all the guesswork. If you want to calculate recurring deposit returns for any monthly investment amount (savings goals, emergency funds). Just enter your monthly deposit, interest rate, and tenure above.

How to use this RD calculator

Put in the monthly deposit amount, the interest rate your bank is offering, and the tenure in years. The maturity value and interest earned show up right away. No account needed.

How does the RD formula work?

Most Indian banks compound recurring deposit interest quarterly. The standard compound interest formula is applied to each monthly installment individually:

M = P × (1 + r/n)nt
VariableWhat it means
MMaturity value of the single installment
PMonthly deposit installment amount
rAnnual interest rate (expressed as a decimal)
nCompounding frequency per year (4 for quarterly)
tTime remaining for that installment in years

The calculator sums the maturity value of every individual installment to give you the final maturity amount. Put in your numbers above and the total sum appears right away.

Factors affecting your RD returns

Three things decide what you walk away with. Change any one of them and the final corpus shifts.

Monthly installment

The installment is your building block. Increasing your monthly deposit scales your final corpus proportionally.

Interest rate

The interest rate accelerates your growth. Even half a percent difference creates a noticeable gap over longer tenures. Here is how a Rs. 5,000 monthly deposit grows over 3 years at different rates.

Interest rateTotal investedMaturity amountInterest earned
6.0%Rs. 1.80 lakhRs. 1.97 lakhRs. 17,490
7.0%Rs. 1.80 lakhRs. 2.01 lakhRs. 20,554
8.0%Rs. 1.80 lakhRs. 2.04 lakhRs. 23,678

RD rates move with RBI monetary policy. Senior citizens usually get a slightly higher rate. The extra bump is typically 0.25% to 0.50% p.a. depending on the bank.

Tenure

Time multiplier. Installments deposited in the first few months earn interest for the longest duration, maximizing the power of quarterly compounding.

Frequently asked questions

Can i open multiple RD accounts?

Yes. Banks place no limit on the number of recurring deposits you can run. This is a common strategy when planning for different targets simultaneously. You can open one RD for an annual holiday and another for insurance premiums.

What happens if i miss an RD installment?

Penalties apply. Most banks charge Rs. 1.50 to Rs. 2.00 per Rs. 100 of the monthly installment for delayed payments. Missing multiple installments consecutively can result in the bank closing the account prematurely. In those cases, the interest is recalculated at a lower rate.

Is RD interest taxable in India?

Yes, fully. Whatever you earn as interest gets clubbed with your income and taxed at your slab. There is also TDS to keep in mind. If your interest at one bank goes past Rs. 40,000 in a year, the bank starts cutting 10% at source. That cutoff is more generous for senior citizens, who get room up to Rs. 50,000 before TDS applies.

What happens if i need to close my RD early?

Premature closure is allowed. The catch is a penalty, usually 0.5% to 1.0% knocked off the interest rate for the period you held the deposit. Partial withdrawals are a different story. Most banks do not allow them, so it is the full amount or nothing.

RD Vs SIP: What is the main difference?

Certainty. An RD tells you exactly what you will get at the end. The rate is fixed and the principal is safe. SIPs go into mutual funds where the return depends on how markets perform. No guaranteed number at the end. RDs suit shorter timeframes where you need the amount to be predictable. SIPs have historically grown more over longer periods but with ups and downs along the way.

The calculator showed x but my bank quoted y. Why?

Timing is usually the reason. This calculator assumes each monthly instalment goes in on the exact due date. Pay a day late or early and the number of days that instalment earns interest changes slightly. Do that across 12 or 24 months and the final maturity value shifts. Your bank's figure uses your actual payment dates.

Can i change the monthly RD installment amount midway?

No. The monthly deposit amount is locked at the time of opening the account. If you want to increase or decrease your monthly savings, you will need to open a new RD account.

Is there a minimum tenure for a recurring deposit?

Six months. Standard bank guidelines set the minimum tenure at six months and the maximum at ten years. Post office recurring deposits typically have a fixed tenure of five years.

Want to see how an RD stacks up in real life? Scroll down!

Worked example: Recurring deposit vs savings account

Rs. 5,000 a month, 24 months, 6.5% p.a. compounded quarterly. Same deposits, two different places. Here is what the numbers look like against a basic savings account at 3.0%:

StrategyMonthly depositTenureTotal savedRateFinal maturity
Recurring DepositRs. 5,0002 yearsRs. 1,20,0006.5% (quarterly)Rs. 1,28,416
Savings AccountRs. 5,0002 yearsRs. 1,20,0003.0% (daily)Rs. 1,23,654

Rs. 4,762. That is the extra interest from the RD over 24 months. The gap is narrow here because the tenure is short. Longer periods and larger amounts pull the numbers further apart. Put in your own targets above to see what it looks like for your situation.

Important note

This RD calculator provides estimates based on standard quarterly compounding. Actual returns may vary slightly depending on the bank's specific policies and delay in installment payments.

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SIP Calculatorestimate returns on a monthly investment
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This calculator is for informational purposes only and does not constitute financial, tax, or investment advice.