Finance · Free tool
RD Calculator
Project the maturity value of a Recurring Deposit. Pick a monthly contribution, rate and tenure; the calculator uses bank-standard quarterly compounding.
How it works
Indian Recurring Deposits follow the bank formula M = P × ((1 + r/n)nt − 1) ÷ (1 − (1 + r/n)−1/3), where r is the annual rate, n = 4 (quarterly compounding), and t is tenure in years. Each monthly instalment earns interest only from the date it is deposited, so the first instalment compounds for the full tenure and the last only for one month. Post-office RD uses a slightly different formula but the difference vs banks is < 1%.
Worked example
Depositing ₹5,000 a month for 5 years at 7.0% p.a. (typical SBI / HDFC RD rate in FY 2025-26): total invested ₹3,00,000; maturity ≈ ₹3,58,768; interest earned ≈ ₹58,768. If the same investor put ₹3,00,000 lump-sum into an FD instead at 7%, maturity would be ~₹4,24,000 — that gap is the cost of disciplined monthly saving vs upfront lump-sum.
When to use this
- Salaried savers building a 12-month emergency fund via automatic SI
- Parents saving for school fees, marriage, or a down-payment over 3–5 years
- Senior citizens claiming the +0.50% senior rate offered by most PSU banks
- Comparing RD vs SIP — RD is capital-protected, SIP is market-linked
For a comparison with other safe options, read PPF vs FD vs RD: where to park money. To switch to equity-linked monthly savings, use the SIP calculator.
FAQ
RD vs SIP — which is better?
RD: guaranteed return (5.5-7%), bank-backed. SIP in equity: 11-12% long-term but with volatility. For 5+ year horizons, SIP usually wins. RD is for short-term goals or capital protection.
Can I withdraw RD prematurely?
Yes — but you forfeit accrued interest and may pay a penalty (typically 1-2%). For penalty-free, use a flexi-RD or a sweep-FD instead.
RD for kids?
Open in minor's name with parent as guardian. Income is clubbed with the higher-earning parent under section 64(1A). Sukanya Samriddhi is usually a better option for daughters.