Finance
RD Calculator India
See what a recurring deposit matures to, and why it earns less than an FD at the same rate.
Interactive tool
RD Calculator India
Maturity value
₹3,59,664
Total invested
₹3,00,000
Interest earned
₹59,664
Choice IQ readout
An RD earns less than an FD of the same size and rate, because each instalment only compounds from the month you pay it in rather than from day one. The trade is that you do not need the lump sum upfront.
- Compare against a SIP in a debt or arbitrage fund, which is taxed on gains rather than at your slab.
- Check the penalty for missing an instalment. Some banks charge a fee, others reduce the rate.
- RD interest is taxable at your slab like FD interest, so factor that in before comparing with the advertised rate.
Tool guide
How to use this rd calculator india
A recurring deposit looks like an FD you pay into monthly, but it earns noticeably less at the same advertised rate. Each instalment only compounds from the month you pay it, so the money you deposit in year three earns very little. This calculator compounds every instalment separately rather than applying the rate to the total.
Formula
Maturity = sum over each instalment of deposit x (1 + rate/4)^(quarters remaining for that instalment).
Decision guide
When to use this rd calculator india
Best use case
Use this page when you need a quick first estimate before comparing products, lenders, subscriptions, or buying options. It is built for practical planning, not final professional advice.
Inputs needed
Keep these numbers ready: Monthly deposit, Interest rate, Tenure in months. If you are unsure, run one conservative estimate and one optimistic estimate.
Shareable result
After calculating, use the result link to save or share the same inputs. The URL parameters keep the calculation easy to revisit.
Common examples
Readers usually use this tool for saving monthly for a goal, comparing an rd against a debt sip, planning a 3-year deposit. The best way to read the output is to compare scenarios instead of treating one result as a final answer.
How it works
A recurring deposit looks like an FD you pay into monthly, but it earns noticeably less at the same advertised rate. Each instalment only compounds from the month you pay it, so the money you deposit in year three earns very little. This calculator compounds every instalment separately rather than applying the rate to the total.
Examples
- Saving monthly for a goal
- Comparing an RD against a debt SIP
- Planning a 3-year deposit
FAQ
Why is my RD maturity lower than I expected?
Because the rate applies to each instalment only from the date you pay it. Your final deposit earns one month of interest, not the full tenure, so the effective return on the total is well below the quoted rate.
Is an RD or a SIP better?
An RD gives a guaranteed return taxed at your slab. A debt fund SIP gives a variable return taxed on gains when you redeem. For short goals under three years an RD is simpler; for longer horizons the tax treatment usually favours funds.
What if I miss an RD instalment?
Most banks charge a small penalty per missed instalment and some reduce the maturity value. Repeated misses can lead the bank to close the account prematurely at a lower rate.
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