RD Calculator
Calculate recurring deposit maturity amount
Investment Settings
Calculation Summary
Breakdown
Investment Growth
Financial Insights
Regular Accumulation
Investing ₹5,000 monthly for 5 years builds a disciplined saving pattern, accumulating a base capital of ₹300,000.
Interest Growth
At 7% p.a., your money earns an additional ₹60,053 in compound interest, boosting your wealth by 20.0% over the principal.
Wealth Ratio
For every ₹100 saved, you receive approximately ₹120 back upon maturity. Compounding amplifies your savings over time.
Year-on-Year Growth Journey
Explore how compounding accelerates your wealth year by year| Year | Invested Amount | Interest Accumulated | Total Maturity | Growth Distribution |
|---|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,324 | ₹62,324 | 4% Interest |
| Year 2 | ₹120,000 | ₹9,154 | ₹129,154 | 7% Interest |
| Year 3 | ₹180,000 | ₹20,815 | ₹200,815 | 10% Interest |
| Year 4 | ₹240,000 | ₹37,656 | ₹277,656 | 14% Interest |
| Year 5 | ₹300,000 | ₹60,053 | ₹360,053 | 17% Interest |
Frequently Asked Questions
What is a Recurring Deposit (RD)?
A Recurring Deposit is a term deposit that allows you to save a fixed amount of money every month for a pre-determined tenure, earning interest rates comparable to FDs.
How is RD maturity value calculated?
It uses a specialized compound interest formula for series payments. Each monthly installment is compounded for its remaining deposit period.
What is the formula for RD interest compounding?
The formula is: M = R × [(1+i)^n - 1] / [1 - (1+i)^(-1/3)] (approximate quarterly compounding where M is maturity, R is monthly payment, i is interest rate, and n is quarters).
How is RD different from SIP?
An RD offers a guaranteed fixed interest rate and zero market risk. A SIP is an investment in market-linked mutual funds with variable return potentials.
Is RD interest subject to tax?
Yes, interest earned on Recurring Deposits is fully taxable according to your income tax slab, and banks will deduct TDS if limits are exceeded.
What happens if I miss an RD installment?
Most banks charge a small penalty fee for late monthly payments, and repeated defaults can lead to premature closure of the RD account.
Can I withdraw my Recurring Deposit before maturity?
Yes, you can prematurely close your RD, but the interest rate paid will be slightly lower than the initial contracted rate.
Are RD rates the same as FD rates?
In most commercial banks, RD and FD interest rates are identical for the corresponding tenure.