RD Calculator

How to Use the RD Calculator

Enter your monthly deposit amount, the annual interest rate and the tenure in months. Click Calculate to see your maturity amount, total deposited, and the interest earned. Expand the breakdown table to see month-by-month growth.

What Is a Recurring Deposit?

A Recurring Deposit (RD) lets you invest a fixed amount every month for a chosen tenure. Indian banks compound RD interest quarterly, making it similar to making multiple FDs each month. RDs are ideal for salaried individuals who want disciplined savings without market risk.

RD Interest Calculation

Banks use quarterly compounding for RDs. Each monthly installment earns interest from the date of deposit to maturity. The calculation iterates month by month:

• Each month, the deposit is added to the running balance.
• At the end of every quarter, interest is compounded on the balance.
• The quarterly interest rate is r/4 where r is the annual rate.

RD vs FD — Which Is Better?

An FD earns slightly more interest because the entire principal earns interest from day one. An RD is better if you don't have a lump sum and prefer monthly savings. For market-linked returns, consider a SIP in mutual funds.

Tax on RD Interest

RD interest is taxable under "Income from Other Sources". TDS is deducted if interest exceeds ₹40,000/year (₹50,000 for senior citizens). Check our TDS Calculator for details.

Frequently Asked Questions