RD Calculator

Stay on track with your savings goals using our Recurring Deposit Calculator, making it simple to project your future returns with regular investments.

Monthly Deposit




Rate of Interest (P.A)




Time period



Invested Amount




Total Value in 1




Recurring Deposits (RDs) are similar to Fixed Deposits (FDs). However, in RDs, you will have to make fixed monthly deposits, and FDs require lump sum deposits. That makes RDs a popular investment option. However, calculating the amount you will receive at maturity can be a bit complicated. That’s why we recommend using an RD calculator like the one above.

What is an RD calculator?

All major financial institutions tend to offer RDs. While these RDs are a great investment alternative, calculating the returns can be challenging. Thankfully there are RD calculators to help you through. An RD calculator, like the one above, is an online tool that helps you calculate how much interest your RD will generate. Using it will help you make better financial decisions more easily.

How is the interest earned on an RD account calculated?

Investors can start an RD with any amount from ₹1,000 to ₹1,99,99,900 per month. The interest is compounded on a quarterly basis even if the deposits are monthly. That means the compounding frequency is four times a year. Since the compounding frequency impacts the maturity amount, you will earn lesser interest—than if the compounding were done on a monthly basis.

RD calculator: The calculation formula it uses

The RD calculator lets you avoid dealing with the math of RD interest calculations. But if you are curious and want to understand how it works, here’s the formula you could use.


A = P*(1+R/N)^(Nt)


In this equation:
A = Maturity amount

P = RD installment per month 

N = Compounding frequency (number of quarters)

R = Interest rate

T = Number of years

This formula helps calculate the maturity amount irrespective of the investment sum or tenure. So, for instance, if an individual starts an RD account for a recurring investment of ₹10,000 per month for a tenure of 5 years, and the interest rate is 7% per annum, this is how the math is done to calculate the final maturity amount:


Interest rate per quarter = 7/4 = 1.75%


The compounding frequency = 20 quarters (i.e., four quarters per year for 5 years).


Thus, the maturity amount = ₹7,19,328.

How to use the RD calculator

Using an RD calculator is very easy. You just need to key in the variables and the calculator will do the rest, showing you the maturity amount almost instantly. Specifically speaking, you wil need to insert the desired monthly investment amount, the tenure of investment, the interest rate, and the start date. With these simple details, you will have the maturity amount in seconds. 

What are the benefits of using the RD calculator?

RD calculators help calculate the maturity amount in seconds. While ease is a significant benefit of the calculator, there are many other pros, too.

  • Accurate calculations

Calculating the recurring deposit amount manually is a tedious task. The margin of error is thus large here. Using an RD calculator will give you more accurate results.


  • Time-saving

The formula to calculate the recurring deposit maturity amount involves multiple variables. Calculating it on paper or on a spreadsheet is thus time-consuming. RD calculators speed up the process instantly.


  • Financial planning

An RD calculator is one of the many tools that can help you make the right investment decision. In that sense, it facilitates better financial planning.


  • Transparency

The terms and wording of the RD scheme can sometimes be misleading. The RD calculator helps you get better clarity on the maturity amount. It thus promotes transparency. 


RDs are quite a popular investment alternative. So we know why you want to try creating this type of deposit account. But to use it efficiently, a calculator like the one above is your best bet when it comes to accuracy. Why not give it a shot?


1.What is the return interest rate of RD?

The rate of return on RDs depends on macroeconomic scenarios like inflation and the prevailing interest rate in the economy. It is thus advisable to contact a bank to find out the exact rate of return.

2.What is the highest RD return?

The RD rates are decided by banks based on the prevailing interest rate in the economy. It is thus difficult to respond to this query. However, it is important to note that senior citizens get a higher return on RD.

3.Which is better—FD or RD?

Both FD and RD are good investment alternatives. However, FD is a one-time lump sum investment, and RD is a month-on-month recurring investment. RD could work better if you want to invest a portion of your earnings each month. But if you have a lump sum amount that you want to invest in one go, FD may be the way to go.

4.Is RD good for the long term?

Yes, RD is a good low-risk investment alternative for the long term. With RD, you will earn compound interest on your investment at a compounding frequency of four compoundings per year. That said, you should do your own research, and seek professional advice if necessary, while considering any investments.

5.What would be the returns on maturity for a five-year post office RD of ₹1,000/per month?

We cannot comment on the maturity amount as the interest rate tends to vary with time. But if we were to take 7% as the rate of interest, the maturity value will be ₹71,932.79. Your investment amount would be ₹60,000, and the interest earned amount to ₹11,932.

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