About this RD Calculator
A recurring deposit (RD) is a bank product where you save a fixed amount every month and earn interest. An RD calculator helps you see maturity value before you open the account.
RDs suit near-term goals like travel, gadgets or a down-payment buffer. For multi-decade wealth building, equity SIPs are usually considered separately.
How to use this calculator
- Enter the monthly deposit amount.
- Set the annual interest rate.
- Choose tenure in months.
- Note total deposited, maturity value and interest.
Formula used
This tool models RD maturity using a monthly compound annuity approximation similar to systematic deposits: FV = P × [((1 + r)^n − 1) / r], where P is monthly deposit, r is monthly rate, and n is months.
Practical tips
- Align RD tenure with the date you need the money.
- Automate the monthly debit so deposits stay consistent.
- After the goal is funded, redirect the same habit into a SIP for longer goals.
Frequently asked questions
What is an RD calculator?
It estimates how much your monthly bank deposits may grow to by maturity, including interest.
RD vs SIP — what is the difference?
RD is typically a bank deposit with relatively predictable interest. SIP invests in market-linked mutual funds with higher uncertainty and higher long-term return potential.
Can I break an RD early?
Banks often allow premature closure with a penalty or lower rate. Check the specific RD terms before you rely on early access.
Is RD interest taxable?
Interest is often taxable as income. This calculator shows illustrative gross maturity figures.
