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Recurring Deposits

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RD Calculator
Monthly Investment (₹)
Rate of Interest (% p.a.)
Investment period (In years)
After 5 years, you will have
Invested Amount
Interest Earned 

What is an RD Calculator?

RD calculator also known as Recurring Deposit calculator is an online financial tool that estimates the maturity value of your recurring deposit account. The online RD interest calculator calculates the maturity amount by considering monthly investments and the interest earned over the same for a specified time duration.

A recurring deposit interest rate calculator is a valuable resource for individuals looking to assess the potential returns on their recurring deposits. It simplifies financial planning and helps in making informed decisions regarding savings goals, thereby facilitating better management of personal finances.

How does an RD Calculator work?

An online RD interest calculator calculates the maturity amount of a Recurring Deposit in the future by collecting monthly deposits, interest rates, and tenure as input. It uses compound interest formulas to project the growth of recurring deposits over time, providing a clear picture of how your savings will accumulate.

To get an estimate of your future worth of savings, all you need to do is input the following details-

  • Your monthly investment amount
  • The expected rate of return
  • The investment period

After entering the details, the RD calculator will display insights into how your investment will grow. These details will help you plan your RDs in a more informed manner.

Our RD Calculator works with the formula.

Maturity amount = P (1 + r/n)nt


P - is the principal amount deposited each month

R - is the rate of interest

n - is the frequency or the number of times the interest is compounded annually

t - is the overall tenure of the recurring deposit

This formula needs to be applied individually to each instalment deposited in the RD since the tenure of each instalment differs. For instance, in the case of a 1-year recurring deposit, the first instalment will be deposited for 12 months, the second instalment for 11 months, the third for 10 months, and so on.

What's the formula to determine RD maturity?

An online RD calculator uses the following formula to determine the RD maturity amount = M = P*(1+R/n)^(nt)


M is the maturity amount.

P is the monthly deposit amount.

r is the annual interest rate (in decimal form, so if the annual rate is 8%, r = 0.08).

n is the number of times the interest is compounded in a year (typically, it's 4 for quarterly compounding).

t is the tenure in years.

Now, let’s assume you are planning to deposit Rs 5,000 per month in an RD scheme for 12 months with a monthly interest compounding. In cases of RD, the period determinant ‘n’ is considered in quarters i.e. 1 year = 4 quarters, 2 years = 8 quarters, and so on. In our case, we will consider it as 4 quarters (12 months)

Therefore, the inputs for value in our case will be

P = 5,000

r = 0.08

n = 4

t = 12

Month of the year = Descending value of the month (Jan is 12, Feb is 11…Dec is 1)

A = P*(1+R/N)^(N*(month of the year)/t)

Substituting these values for the above formula, we get for all months, we get

(See table)

What are the advantages of using an RD calculator?

Using a recurring deposit interest calculator has several advantages including Simplified Financial Planning, saving time, accurate results, free and unlimited usage, etc. If you are planning to invest in a recurring deposit, an RD interest rate calculator can benefit you in the following ways.

  • Simplified Financial Planning:
    When you have a financial goal, such as buying a car or funding a child's education, it's crucial to ensure that you consistently set aside the required amount. The RD calculator acts as an effective financial planning tool by enabling individuals to plan their regular contributions systematically. The calculator helps determine how much to deposit every month to reach that goal.
  • It helps save time:
    Manually calculating the maturity amount and the returns from a recurring deposit can take you a while. But an RD calculator saves you a lot of time. You can get the results from your inputs in an instant, making it extremely easy to plan your RD investments accurately.
  • It gives you accurate results:
    Manual calculations are also prone to human error. Computational mistakes can lead to misguided investment decisions. Here’s where an RD calculator proves to be beneficial. The online calculator gives you accurate results based on the inputs you provide.
  • It is free of cost and offers unlimited usage:
    Above all, a recurring deposit calculator is also free to use. You need not pay anything to make use of this online tool, and you can use it as many times as you need to. This makes it easy to change the inputs and compare RD offerings from different banks.

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  • What is RD?
    RD is a method of investing money. It allows individuals to invest a fixed amount at regular intervals rather than making one large investment(lump sum investment). It allows individuals to invest in a disciplined and systematic manner. This is important because it allows for regular saving even if the amount is small, it can add up over time.
  • What is a RD Calculator?
    A RD Calculator is a tool created to help investors like you in determining how much they need to invest on a regular basis in order to achieve a specific financial goal. The calculator takes into account the amount of the investment, the frequency of the investment, and the expected returns on your investments.
  • How does RD Calculator Work?
    P = Initial value or the investment made R = Rate of interest that is compounded annually T = Duration in years for calculating future value The above can be used for a basic lump sum future value calculator. This is normally, a very simple assumption. In reality, there are intermittent cash flows called annuities so you have to calculate the future value of such annuities. Normally, the future value calculator also imputes such annuities into the formula to give you the fu

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