RD Calculator
A recurring deposit (RD) lets you put a fixed amount in a bank or post office account every month for a fixed period, and get the deposits back with interest at the end. It suits people who want a saving habit without a large lump sum. The Gunaka RD calculator shows the maturity amount, the total you deposited and the interest earned for the monthly amount, rate and tenure you enter. It does not look up current rates, so enter the rate printed on your own RD offer.
How the RD maturity amount is worked out
Most Indian banks add RD interest every quarter. Each monthly deposit earns interest only for the months it stays in the account, so the first deposit grows the longest and the last one the least. For a monthly deposit D, a yearly rate R in percent and n months, the quarterly rate is q = R / 400. The deposit made in month k stays for (n - k + 1) months, and the maturity amount is the sum of D x (1 + q)^((n - k + 1) / 3) over all months k from 1 to n. The calculator runs this sum for you. Your bank may round each quarter's interest, so its figure can differ by a few rupees.
A worked example you can check
Deposit Rs 5,000 every month for 3 years (36 months) at 6.5% a year. The quarterly rate is 6.5 / 400 = 1.625%. Adding up all 36 deposits with their own growth gives a maturity amount of about Rs 1,99,122. You deposit Rs 1,80,000 in total, so the interest earned is about Rs 19,122. The 6.5% is an example only. RD rates change often and differ between banks, tenures and for senior citizens, so check the current rate with your bank or on the India Post website before you decide.
RD or FD: what is the difference
An FD takes one lump sum on day one. An RD takes small deposits every month, so the money earns interest for a shorter average time and the final interest is lower than an FD of the same total deposit. Choose an RD when your savings arrive monthly, for example from a salary. You can compare the two with the [FD calculator](/fd-calculator/) or see what the same monthly amount could become with the [SIP calculator](/sip-calculator/), keeping in mind that a SIP is market-linked and an RD is not.
Things worth checking on an RD
- Missed instalments. Banks usually charge a small fee for a late or missed monthly deposit, and some close the account after several misses. Read the terms before you open one.
- Premature closing. Closing early normally means a lower interest rate and sometimes a penalty.
- Tax. Interest on an RD is taxable and banks may deduct TDS above certain limits. Check the current rules on the Income Tax Department website. The calculator shows interest before tax.
- Compounding. Most banks compound quarterly. Post office schemes have their own rules, so use the rate and rules published by India Post.
Results are estimates for planning, not financial advice.
Frequently asked questions
How is RD maturity amount calculated?
Each monthly deposit earns quarterly-compounded interest for the months it stays in the account, so the maturity is the sum of D x (1 + R / 400)^((n - k + 1) / 3) for months k = 1 to n.
Which compounding does the RD calculator use?
Quarterly compounding, which is how most Indian banks calculate RD interest. Your bank may round slightly differently.
Is RD interest shown before or after tax?
Before tax. Interest on a recurring deposit is taxable, so your return after tax can be lower.
Is the RD calculator the same as the FD calculator?
No. An FD invests one lump sum, while an RD invests a fixed amount every month, so each deposit earns interest for a different length of time.
What happens if I miss an RD instalment?
Banks usually charge a fee, and repeated misses can close the account. Check your bank's terms, because the calculator assumes every instalment is paid on time.