How to use the RD Calculator
- 1. Enter your monthly depositType the instalment, your bank's rate and the tenure in months.
- 2. Check compoundingMost banks compound RDs quarterly, so that is already selected.
- 3. See your maturityGet the final amount, your interest and the value at each year.
How RD maturity is worked out
A recurring deposit is a row of small deposits, and each one earns for a different length of time. Your first instalment stays for the whole tenure. Your last one stays for just one month. So the calculator values each instalment on its own and adds them up:
Maturity = sum of P × (1 + r/n)^(n × k/12), for k from 1 to the number of months. P is the monthly deposit, r is the yearly rate, n is compounding periods a year and k is the months that instalment stays invested.
Worked example: ₹5,000 a month for 36 months at 6.5%, compounded quarterly. You deposit ₹1,80,000. The first instalment grows the most and the last grows the least. Together they mature at ₹1,99,122, which means ₹19,122 is interest.
Why an RD earns less than an FD at the same rate
People often multiply the rate by the full amount and expect more. But your money goes in slowly, so on average it stays invested for only about half the tenure. That is normal, not a bank error. If you already have the full sum, a lump deposit will earn more. Use the FD calculator to compare. If you are building up savings from your salary, an RD is the simple way to do it.
Before you open an RD
- Missed instalments. Banks charge a late fee, and the rule differs by bank. Set up auto-debit.
- Tax. RD interest is taxed at your slab rate, and TDS may apply.
- Early closure. You usually get a lower rate if you close before maturity.
Want a government-backed option? The Post Office RD calculator uses that scheme's rules. For long-term goals, look at the PPF calculator.
Frequently asked questions
Why do different RD calculators show slightly different numbers?
Some treat the deposit as made at the start of the month, and some at the end. This tool assumes the start of the month, on time, every month. Your bank's figure may differ by a small amount.
Can I enter a tenure in years?
Enter it in months. For 3 years, type 36. For 5 years, type 60.
Does the result include tax?
No. It is the amount before tax. RD interest is taxable at your slab rate.
Is the RD calculator free?
Yes. You enter your name and WhatsApp number once to see your result, and all other Uncodemy tools then open without the form.