RD Calculator

About the RD Calculator

A recurring deposit (RD) lets you save a fixed amount every month for a chosen period at a guaranteed interest rate, making it perfect for building a savings habit. Like a fixed deposit, it offers assured returns, but instead of a single lumpsum you invest in regular instalments. This suits salaried people who want to set aside a part of their income each month towards a goal such as a holiday, a gadget or an emergency fund.

Each monthly deposit earns interest for the remaining months until maturity, and interest is typically compounded quarterly. The maturity value is the sum of all instalments plus the compounded interest on each. Because early deposits stay invested longer, they earn more interest than later ones. This calculator adds up the compounded value of every instalment to show your maturity amount and the total interest you earn over the tenure.

RD interest is taxable at your income slab, and TDS may apply if the annual interest crosses the threshold. Missing an instalment can attract a small penalty, so ensure funds are available on the due date. While RDs offer safety and discipline, their returns are similar to FDs and may not beat inflation over the long run, so they are best for short-to-medium-term goals where certainty matters more than high growth.

How to use it

• RDs build a disciplined monthly savings habit with guaranteed, predictable returns.
• Earlier instalments earn more interest because they stay invested for longer.
• RD interest is taxable at your slab rate, and TDS may apply on higher interest amounts.
• Ensure funds are available each month, as missed instalments can attract a small penalty.