RD Calculator

Use this online Recurring Deposit Calculator to calculate the total value and total interest earned on your RD investment.
RD Calculator
6 mins

How can an RD calculator help you?

A Recurring Deposit (RD) is an ongoing investment where tracking returns can be complex due to quarterly compounding of interest and various involved variables. RD calculator simplifies the process, allowing investors to determine the exact returns on their deposits easily.

The only manual task for the investors is considering TDS deduction, which varies among financial institutions and isn't factored into RD calculators.

How to use the Bajaj Finance RD Calculator online?

Utilising our RD Calculator is a simple and user-friendly procedure. To help you get started, here's a step-by-step guide:

Step 1: Input your "Monthly Investment Amount (in rupees)."

Step 2: Specify the "Time Period” (in months).

Step 3: Provide the "Rate of Interest (in %)" offered by your RD provider.

Within moments, you'll receive instant results, displaying the total investment value and the accrued interest amount.

A formula to determine RD maturity

The calculation of the RD maturity amount involves three key variables, which are processed by an RD account calculator using a standard formula to determine the precise maturity amount.

The formula for RD maturity is

A = P*(1+R/N)^(Nt)


A = Maturity Amount
P = Monthly RD Instalment
N = Compounding Frequency (number of quarters)
R = RD Interest Rate as a percentage
T = Tenure

This formula serves as the universal method for calculating RD maturity amounts, irrespective of the invested amount or the investment duration. All that's required is to input the specific values.

For example, let us calculate the maturity amount of an RD considering the monthly deposit amount of Rs. 7,000 and an interest rate of 8.50%.

Using the above mentioned formula, here A will be the “Maturity Amount”, P will be “Monthly RD Instalment” (Rs. 7,000), N will be “Compounding Frequency” (number of quarters), R will be “RD Interest Rate” (8.50% or 0.085) and T will be “Tenure” (1 year, equivalent to 4 quarters).


A = P*(1+R/N)^(Nt)
= 7000*(1+0.085/4)^(4*12/12)
= Rs. 7,671.40

A = P*(1+R/N)^(Nt)
= 7000*(1+0.085/4)^(4*11/12)
= Rs. 7,521.88

A = = P*(1+R/N)^(Nt)
= 7000*(1+0.085/4)^(4*1/12)
= Rs. 7,049.37

For this specific investment scenario, summing up this series, the total maturity value, i.e., A, equals Rs 85,947.42.

Manually solving such equations can be quite challenging. A Recurring Deposit Calculator swiftly provides you with the exact figure in seconds.

Advantages of using an RD maturity calculator

An RD calculator offers several advantages:

  • Precise financial planning: Investors can plan their future finances with clarity, knowing the exact amount their investment will accumulate.
  • Convenience: These calculators are user-friendly and save valuable time that investors can use more productively.
  • Accuracy: They provide highly accurate estimates, which are essential for prudent financial planning.
    Invest with confidence and foresight using our RD calculator.

Frequently Asked Questions

What is a RD?

Recurring Deposit (RD) is a type of term deposit offered by banks, post office and financial institutions in India. It allows you to save a fixed amount of money every month for a predetermined period and earn interest on it.

How is recurring deposit interest calculated?

The interest on RD is calculated based on the principal amount, the rate of interest, and the tenure of the deposit. The interest is compounded quarterly, and the formula used to calculate the maturity amount is A = P*(1+R/N)^(Nt)


A = Maturity Amount
P = Monthly RD Instalment
N = Compounding Frequency (number of quarters)
R = RD Interest Rate as a percentage
T = Tenure

Is RD better than an FD?

The choice between RD (Recurring Deposit) and FD (Fixed Deposit) depends on your financial goals and investment horizon. If you have a lumpsum amount to invest, FD is a better option as it offers higher interest rates. If you want to save a fixed amount every month, RD is a better option as it instils financial discipline and offers a higher interest rate than savings accounts.

What is the maturity amount in recurring deposit?

The maturity amount in RD depends on the principal amount, the rate of interest, and the tenure of the deposit. You can use our online RD calculator to determine the maturity amount of your investment.

Is TDS applicable on RD?

Starting from June 1, 2015, the Finance Bill has enforced mandatory TDS (Tax Deducted at Source) on all recurring deposits. It's important to emphasize that this requirement solely pertains to the interest earned on the RD.

What is the minimum amount to start an RD account?

The minimum amount to start an RD account varies from bank to bank. It can range from Rs. 100 to Rs. 10,000.

Can I break my RD prematurely?

Yes, you have the option to prematurely terminate your RD account. In such cases, interest will be disbursed up to the closure date, and it's essential to note that your financial institution may levy a penalty fee.

What is RD’s range of tenure?

Normally, the RD duration initiates at 6 months and can extend up to 10 years. You have the flexibility to opt for a tenure in increments of 3 months following the initial 6 months, allowing for options such as 9 months, 12 months, 15 months, and so forth.

Is 5 year RD tax free?

No, the interest earned on a 5-year RD is not tax-free.

Can I skip RD for one month?

Missing an RD instalment may attract penalty charges and could disrupt your interest calculation.

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