Toolstia / RD calculator
Recurring deposit (RD) calculator
A recurring deposit lets you save a fixed amount every month at a fixed interest rate. Enter the monthly deposit, the rate and the number of months to see the maturity value and the interest earned.
Calculated with a deposit at the start of each month and interest compounded quarterly, which is the usual method for recurring deposits in South Asia. Your bank's own table is the one that counts. This is not financial advice.
How it works
- Enter the monthly deposit and the yearly rate.
- Enter the number of months.
- Read the maturity value and the interest earned.
How it is calculated
Each monthly deposit earns interest for the months that remain, compounded quarterly. The deposit made first earns the most and the last earns the least. The tool adds up the growth of every deposit.
An example
Depositing 1,000 a month for 12 months at 6% a year gives about 12,394 at maturity. You deposited 12,000, so the interest is about 394.
RD versus SIP
An RD pays a fixed rate agreed in advance, so the result is predictable. A SIP invests in markets, so the result varies. That is why the RD calculator is a firm figure and the SIP calculator is an estimate.
Check the terms
Banks differ in how they treat late deposits and partial months, and interest may be taxed. Your bank's own table is the one that counts.
Questions
How long can an RD be?
It depends on the bank. Common terms are from 6 months to 10 years. The calculator accepts up to 1,200 months.
What if I miss a deposit?
Banks often charge a small fee or reduce the interest. This calculator assumes every deposit is paid on time.
Which compounding does it use?
Quarterly, which is common for recurring deposits in South Asia.
Is this financial advice?
No. It is a calculator.