A Recurring Deposit (RD) calculator computes the maturity amount when you deposit a fixed amount every month in a bank recurring deposit.
About this calculator
A Recurring Deposit (RD) calculator computes the maturity amount when you deposit a fixed amount every month in a bank recurring deposit. RDs combine the discipline of regular savings with the higher interest rates of fixed deposits.
RDs are useful for building a corpus for a specific goal, like a vacation, car down payment, or emergency fund, through systematic monthly savings.
Common uses
- Calculate RD maturity for a ₹5,000 monthly deposit over 2 years
- Plan a vacation fund through monthly RD contributions
- Build an emergency fund systematically using an RD
- Compare RD vs SIP for a 3-year savings goal
Frequently asked questions
How is RD interest calculated?
RD interest is typically compounded quarterly. The maturity amount = R × [(1 + i/4)^(4n) − 1] / [1 − (1 + i/4)^(−1/3)], where R is monthly deposit, i is annual interest rate, and n is tenure in years. The formula is complex but our calculator handles it automatically.
What happens if I miss an RD installment?
Missing an RD installment usually incurs a penalty, typically 1–2% on the delayed amount for the period of default. If too many installments are missed, the bank may close the RD prematurely and pay a reduced interest rate.