RD Calculator
The RD Calculator helps you estimate the maturity value and the interest you will earn on a recurring deposit. You enter your monthly deposit, the interest rate, and the tenure, and the calculator instantly shows how much your deposits will grow to and how much of that is interest. It is a quick, free way to plan disciplined monthly savings before you start.
What is a Recurring Deposit?
A recurring deposit, or RD, is a savings product from banks and NBFCs where you deposit a fixed amount every month for a fixed period at a fixed, predetermined interest rate. It is the monthly-saving version of a fixed deposit: instead of putting in a lump sum once, you build your savings gradually with a set monthly amount. Because the rate is agreed upfront and does not change with the market, you know at the start roughly what your deposits will be worth at maturity. RDs suit people who want to save steadily from their monthly income with certainty and low risk, and bank deposits are covered by deposit insurance up to the prescribed limit.
What is the RD Calculator?
The RD Calculator is an online tool that works out the maturity value and interest on a recurring deposit. You provide your monthly deposit, the interest rate, and the tenure, and it returns your maturity amount and the interest earned. It saves you the compounding maths and lets you compare different monthly amounts, rates, and tenures in seconds, so you can plan a monthly saving that fits your budget.
How Does the RD Calculator Work?
In a recurring deposit, each monthly deposit earns interest for the time it stays invested, and interest is compounded quarterly. The standard formula is:
M = R × ( [ (1 + i)N − 1 ] ÷ [ 1 − (1 + i)(−1/3) ] )
where R is your monthly deposit, i is the quarterly interest rate (annual rate divided by four), and N is the number of quarters. The idea in plain terms is simple: your first deposit earns interest for almost the entire tenure, your last deposit earns interest for only a month or so, and every deposit in between earns interest for the months it stays invested. The calculator adds up the interest on every deposit to give your maturity value.
How to Use the Indiabulls Securities RD Calculator
It takes only a few seconds. Enter the amount you plan to deposit each month, then the annual interest rate offered on the RD, and finally the tenure in years or months. The calculator instantly shows your total deposits, your maturity value, and the interest you will earn. You can adjust the monthly amount, rate, or tenure to compare options and find a savings plan you can comfortably sustain.
Benefits of Using an RD Calculator
- Know your maturity value upfront. See what your monthly deposits will grow to before you begin.
- Plan a monthly saving you can sustain. Test different amounts to fit your budget.
- Skip the compounding maths. The quarterly-compounding calculation across every deposit is done instantly.
- Save with certainty. Because RD returns are fixed, you get a firm figure to plan around.
RD Calculation Example
Suppose you deposit ₹5,000 every month in a recurring deposit at 7 per cent per annum for 5 years, with interest compounded quarterly. Over the five years, you would deposit ₹3,00,000 in total, and at maturity, your RD would be worth ₹3,59,664, meaning you earn ₹59,664 in interest. Because your earlier deposits stay invested longer, they earn more interest than your later ones, and the calculator accounts for exactly that when working out your maturity value.
(Figures depend on the rate and compounding your provider uses.)
RD vs SIP: Two Ways to Invest Monthly
An RD and a SIP are both ways to invest a fixed amount every month, but they work very differently. A recurring deposit gives you a fixed, predetermined return and no market risk, so you know roughly what you will get at maturity. A SIP invests your monthly amount into mutual funds, so its returns are market-linked, they can be higher over the long term, but they are not fixed and can rise or fall with the market. An RD offers certainty; a SIP offers growth potential with risk. Many people use an RD for short-term goals or money they cannot risk, and a SIP for long-term goals where they can ride out market ups and downs. The right choice depends on your goal, your time horizon, and how much risk you are comfortable with. You can compare a monthly SIP plan using our SIP Calculator →.
Tax on RD
Interest earned on a recurring deposit is fully taxable and is added to your income, taxed at your applicable slab rate. Banks deduct TDS on RD interest once it crosses the prescribed annual limit. Tax rules can change, so check the current rules or consult a tax adviser.
Frequently Asked Questions
Yes. The Indiabulls Securities RD Calculator is completely free and can be used as often as you like, with no login required.
If you are drawn to the monthly-saving discipline of an RD but want the potential for higher long-term growth and are willing to take on market risk, a SIP may be worth exploring. Indiabulls Securities lets you invest through SIPs in mutual funds and stocks, with the platforms and tools to manage them and support from experienced professionals. Opening a Demat account is quick, and account opening is free. Remember that SIP returns are market-linked and not guaranteed, unlike a recurring deposit's fixed return.
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