Recurring Deposit (RD) Calculator

Our free RD Calculator helps you calculate the maturity amount and interest earned on your Recurring Deposit. Enter your monthly deposit amount, annual interest rate, and tenure to see the final maturity value.

What is a Recurring Deposit?

A Recurring Deposit (RD) is a type of savings account offered by banks where you deposit a fixed amount every month for a predetermined period. It earns compound interest and pays out the maturity amount at the end of the tenure.

RD Maturity Formula

The formula for RD maturity is:

M = P × [(1+r)ⁿ − 1] × (1+r) / r

• M = Maturity amount
• P = Monthly deposit
• r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
• n = Tenure in months

Example

Monthly deposit of ₹5,000 at 7% annual interest for 12 months:
r = 7/12/100 = 0.005833
M ≈ ₹62,361 (interest earned ≈ ₹2,361)

Frequently Asked Questions

Is RD interest compounded?

Yes, most banks compound RD interest quarterly. This calculator uses monthly compounding for simplicity; actual maturity may vary slightly by bank.

Can I close an RD before maturity?

Yes, premature closure is allowed but usually attracts a penalty of 0.5–1% reduction in interest rate.

Is RD better than FD?

RD is better if you want to save regularly with smaller monthly amounts. FD is better for a lump-sum investment. Both offer similar interest rates.