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RD Calculator

Calculate Recurring Deposit returns and build wealth through systematic monthly savings

Recurring Deposit Calculator

Calculate the maturity amount and returns for your Recurring Deposit investment. Enter your monthly investment details to see how your regular savings will grow with compound interest.

RD Calculator

five thousand dollars

Enter monthly investment amount between $1 and $100,000
Enter annual interest rate between 0% and 50%
Enter time period between 0.1 and 50 years
Click to calculate RD returns based on the entered values. All required fields must be filled with valid values.

• Monthly investment: $1 - $100,000

• Interest rate: 0% - 50% per annum

• Time period: 0.1 - 50 years

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Fill in the form and click calculate to see your Recurring Deposit projections here.

Understanding Recurring Deposits

Benefits of Recurring Deposits

Recurring Deposits encourage disciplined savings with guaranteed returns, perfect for building wealth through regular contributions.

  • • Disciplined monthly savings habit
  • • Guaranteed returns with capital protection
  • • Compound interest on accumulated deposits
  • • Flexible monthly investment amounts
  • • Lower risk compared to market investments

How Recurring Deposits Work

You deposit a fixed amount monthly, and interest is compounded quarterly on the accumulated balance, maximizing your returns.

  • • Monthly deposits with quarterly compounding
  • • Formula: PMT × [((1 + r/n)^(n×t) - 1) / (r/n)] × (1 + r/n)
  • • Interest calculated on accumulated deposits
  • • Maturity amount = Total deposits + Interest
  • • Premature withdrawal may have penalties

Investment Tips

These calculations assume quarterly compounding and fixed interest rates. Actual returns may vary based on the bank's terms and conditions. Consider factors like inflation, tax implications, and your monthly budget. RDs are ideal for building an emergency fund or saving for short to medium-term goals. Compare rates across different banks and ensure you can maintain regular monthly deposits. Consult with your bank or financial advisor for personalized advice.

💡 RD Tips

  • Set up auto-debit for consistent deposits
  • Start small and increase amount annually
  • Choose tenure based on your goals
  • Senior citizens get higher interest rates

📚Understanding Recurring Deposits

What is Recurring Deposit?

A Recurring Deposit (RD) allows you to deposit a fixed amount every month for a predetermined period, earning compound interest.

RD is perfect for building a saving habit and accumulating wealth through small, regular contributions.

💡 Start with as low as ₹100 per month!

How RD Interest Works

RD interest is calculated using the recurring deposit formula:

M = R × [((1 + i)^n - 1) / i] × (1 + i)

Where:

  • M = Maturity amount
  • R = Monthly deposit amount
  • i = Quarterly interest rate
  • n = Number of quarters

Interest compounds quarterly on accumulated deposits.

RD vs Other Savings

RD vs Savings Account:

Higher interest rates (5-7% vs 3-4%)

RD vs FD:

Same interest rates, but RD allows monthly contributions

RD vs SIP:

RD: Guaranteed returns | SIP: Potentially higher but risky

RD Benefits

  • Disciplined Saving: Builds regular saving habit
  • Guaranteed Returns: Fixed interest rate throughout tenure
  • Flexible Amount: Start with small amounts
  • Capital Safety: Principal amount is protected
  • Loan Facility: Available after 12 months
  • Tax Benefits: 5-year tax saver RD available

💡 Pro Tips for RD Success

  • • Set up auto-debit to avoid missing installments
  • • Choose tenure based on your financial goals
  • • Consider increasing amount annually
  • • Compare rates across different banks
  • • Senior citizens get additional 0.25-0.75% interest
  • • Use for short to medium-term goals (1-5 years)

Frequently Asked Questions