What is the RD Calculator?
A Recurring Deposit (RD) calculator estimates the maturity of fixed monthly deposits over a chosen tenure at a fixed interest rate. It's the disciplined cousin of an FD — perfect for building a corpus from salaried income.
Like FDs, banks compound RD interest quarterly, so the maturity sits between simple-interest and a fully compounded SIP.
Formula
M = Σ P × (1 + r/4)^(4t − k/3) for each monthly deposit k
- P — Monthly deposit
- r — Annual interest rate (decimal)
- t — Tenure in years
In practice we iterate month by month with quarterly compounding to match bank statements.
Step-by-step example
Setup: ₹5,000/month RD for 5 years at 6.75% p.a.
- Quarterly rate = 0.016875
- 60 monthly deposits, each compounded for its remaining months
- Maturity ≈ ₹3,57,500
Answer: Deposited ₹3,00,000 · Maturity ≈ ₹3,57,500 · Interest ≈ ₹57,500
Frequently asked questions
Is RD interest taxable?
Yes, at slab rate. TDS rules from FY 2019-20 apply once total interest crosses ₹40,000 a year.
Can I withdraw early?
Premature closure is allowed with a 0.5–1% interest penalty.