RD Calculator

RD Calculator

Calculate recurring deposit interest returns and final bank maturity yields instantly using local browser memory.

Input Methodology

1. 1Enter Monthly Deposit: Type the amount you plan to save each month.
2. 2Define Interest Rate: Enter the annual interest rate offered by your bank.
3. 3Set Tenure: Adjust the tenure slider in years or months.
4. 4Inspect Maturity: Review your maturity amount, total interest earned, and investment breakdown.

Recurring Deposit (RD) Calculator Online

Investing ₹5,000 monthly in a 5-year Recurring Deposit (RD) at a 6.5% interest rate compounded quarterly yields a maturity value of ₹3.56 lakh, comprised of ₹3 lakh principal and ₹56,800 interest. Because banks compound RD interest quarterly but receive deposits monthly, simple multipliers fail. This calculator computes the exact returns using standard bank compounding intervals.

• Calculated Maturity Value is Too Low: Ensure you enter the monthly deposit amount rather than your total annual savings goal.
• Inputs Are Locked: Clear your browser cache and refresh the page to update the local scripts.
• Maturity Values look Low: Verify that your interest rate is entered as a percentage (e.g. 6.5) rather than a decimal (e.g. 0.065).

What happens if I miss a monthly RD deposit?

Most banks charge a small penalty fee for late monthly deposits. If you miss multiple deposits, the bank can close the account and reduce the interest rate.

Can I withdraw money from an RD before maturity?

Yes, but you will pay a penalty fee, and the bank will calculate interest at a lower rate based on the actual duration the money was held.

Are my monthly savings numbers uploaded to a server?

No, the recurring deposit math is processed client-side in your local browser sandbox. Your financial data stays on your device.

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Mathematical Formula & Standards

Recurring deposits calculate interest on monthly additions under quarterly compounding cycles:

1. 1The Recurring Deposit Formula: Banks calculate maturity values using the standard recurring deposit equation:

M = P * ((1 + i)^n - 1 / 1 - (1 + i)^-1/3)

Where:

• M = Maturity Amount.
• P = Monthly deposit amount.
• i = Interest rate per quarter (r / 4 / 100).
• n = Total number of quarters.
• Monthly Interest Accumulation: Because you deposit money each month, earlier deposits compound for longer than later deposits.
• Maturity Compilation: The engine sums the interest earned on each monthly installment to compute the final maturity value.

[Monthly Deposit (P), Rate & Years] 
                  |
                  v
[RD Quarterly Compounding Formula: Sum of compound interest on monthly additions]
                  |
                  v
[Maturity Amount (M) + Total Contributions vs. Interest Split]

Result Interpretation Guidance

• Monthly Savings Plan: A saver deposits 500 monthly in an RD at a 7% interest rate compounded quarterly for 5 years (t=5,n=4). The total contribution is30,000. The calculator computes a maturity amount of 35,849.52, where interest earnings equal5,849.52.
• Near-Term Expense Saving: A parent deposits 200 monthly for 2 years (t=2) at a 6.5% rate. The total contribution is4,800. The maturity value grows to $5,133.56.

• Salaried Professionals: Building disciplined monthly savings habits.
• Medium-Term Savers: Accumulating funds for near-term expense goals (such as annual insurance premiums or holiday travel).
• Low-Risk Investors: Securing guaranteed payouts without market volatility.
• Parents: Building education and marriage expense funds for their children.

• Estimating maturity values of monthly savings accounts at banks or post offices.
• Comparing guaranteed recurring deposit yields against volatile equity SIP options.
• Adjusting monthly savings targets to reach a specific financial goal.

• Do not use for one-time lump-sum bank deposits (use our FD Calculator instead).
• Avoid using for market-linked mutual fund SIPs (recurring deposits offer fixed, guaranteed interest rates, while SIP returns vary based on market performance).

Regulatory & Professional Disclaimer