Recurring Deposit Calculator – Calculate RD Maturity Easily

• Jan 29, 2026
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Recurring Deposits (RDs) are an excellent savings tool for individuals who prefer consistent, low-risk investments. By depositing a fixed amount every month over a fixed tenure, investors earn interest compounded quarterly and receive a lump sum at maturity.

However, calculating the maturity amount manually can be confusing due to compounding interest. This is where a recurring deposit calculator—or simply, recurring deposit calc—proves invaluable. It simplifies your financial planning, saves time, and ensures accuracy.

In this guide, you’ll learn what RDs are, how RD calculators work, and how you can use them to your advantage.

What is a Recurring Deposit?

A recurring deposit is a type of term deposit where you invest a fixed amount each month for a pre-decided period. At the end of the tenure, you receive the invested principal along with the interest earned.

It’s perfect for salaried individuals, students, and anyone who wants a disciplined saving habit without market risk.

Why Use a Recurring Deposit Calculator?

A recurring deposit calculator helps you determine your RD’s maturity amount with precision. Rather than calculating interest manually, the calculator requires you to enter three basic details:

• Your monthly deposit amount
• The annual interest rate
• The tenure (in months or years)

The calculator then gives you:

• The total amount you’ll deposit
• The total interest you’ll earn
• The maturity value you’ll receive at the end of the tenure

It’s quick, reliable, and user-friendly.

How Does a Recurring Deposit Calculator Work?

When you input the three key figures (monthly deposit, interest rate, and tenure), the calculator uses a standard RD formula to compute your maturity amount. It accounts for the compounding of interest on a quarterly basis, which is how banks typically calculate interest on RDs.

This removes the need for complex formulas or spreadsheet functions, giving you instant, accurate results.

RD Interest Formula Explained

The formula most calculators use is:

M = R × [(1 + i)^n – 1] / (1 – (1 + i)^(-1/3))

Where:

• M is the maturity amount
• R is the monthly deposit
• i is the interest rate per quarter
• n is the number of quarters

Although you can compute this manually, using a calculator saves time and avoids potential errors.

Example Calculation

Let’s say you invest ₹5,000 every month for three years at an interest rate of 6.5% per annum.

Here’s how it breaks down:

• Total deposits over 36 months = ₹5,000 × 36 = ₹1,80,000
• Estimated interest earned = ₹18,400 (approximate)
• Maturity amount = ₹1,98,400

In just a few seconds, the recurring deposit calc gives you this breakdown, saving you a lot of math and guesswork.

Features of a Good RD Calculator

• Easy to use interface
• Immediate and accurate results
• Allows you to experiment with different amounts, rates, and tenures
• Some calculators even show year-wise projections
• Mobile app versions available for quick calculations on the go

Benefits of Recurring Deposits

• Encourages disciplined monthly savings
• Offers guaranteed returns (unlike market-based investments)
• Compounded quarterly for better returns over time
• Ideal for short to medium-term goals like vacation funds, emergency savings, or gadgets
• Suitable for both salaried and self-employed individuals

Things to Keep in Mind When Using a Recurring Deposit Calc

Make sure you:

• Enter a realistic interest rate, based on current bank offerings
• Choose the correct tenure and stick to it
• Understand that the calculator provides an estimate (actual returns may vary slightly due to rounding and bank-specific rules)
• Account for TDS and other tax implications on the interest earned
• Avoid premature withdrawals if possible, as they affect maturity amount and interest earned

RD vs Fixed Deposit (FD)

Though both are fixed-income investments, there are key differences:

• In RD, you invest monthly; in FD, it’s a lump sum
• RDs are more suited to people with regular income
• FDs offer slightly more flexibility in terms of duration and deposit modes
• Interest rates are typically similar

Tax on RD Interest

RD interest is fully taxable. It’s added to your income and taxed based on your tax slab.

If the interest from all your RDs across branches of the same bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens), the bank deducts TDS (Tax Deducted at Source).

To avoid higher TDS, always provide your PAN to the bank.

Popular Banks and Their RD Rates (as of 2025)

Note: These are indicative figures. Always check the official website or branch for updated rates.

• State Bank of India (SBI): Around 6.5% to 7% per annum
• HDFC Bank: Between 6.75% and 7.25% per annum
• ICICI Bank: About 6.6% to 7.1% per annum
• Post Office RD: Fixed at 6.7% (5-year tenure only)

Where to Find RD Calculators

You can access RD calculators through:

• Bank websites like SBI, ICICI, HDFC, Axis
• Finance portals like BankBazaar, Groww, and PaisaBazaar
• Mobile banking apps
• Google Sheets and Excel templates

These tools are generally free, mobile-friendly, and require no personal details to use.

Tips to Maximize RD Returns

• Start your RD as early as possible
• Choose a bank offering a higher rate of interest
• Avoid missing monthly payments
• Reinvest the maturity amount into another RD or higher-return instrument
• Use RD calculators regularly to plan and compare

Recurring Deposit for NRIs

Many banks offer NRE and NRO RDs for NRIs. These accounts offer similar features but may differ in terms of interest rates, repatriation rules, and taxation.

If you're an NRI, use calculators tailored for NRO/NRE RDs which take these variables into account.

Frequently Asked Questions (FAQs)

Q1: Is interest earned on RD taxable?
Yes, the interest is taxable as per your income slab. Banks also deduct TDS if the interest crosses the threshold limit.

Q2: Can I withdraw an RD before maturity?
Yes, but you may lose a portion of the interest and may be charged a small penalty.

Q3: What happens if I miss a monthly RD payment?
The bank may charge a small penalty or extend your maturity date. Repeated defaults can reduce your final payout.

Q4: Can I change my monthly deposit amount in the middle of the RD term?
No, the amount is fixed once the RD starts. You’ll need to open a new RD if you want to deposit a different amount.

Q5: What is the minimum amount required to open an RD?
It varies by bank, but typically ranges from ₹100 to ₹500 per month.

Q6: Is the RD maturity amount guaranteed?
Yes, as long as you complete the full tenure without default, the amount is guaranteed.

Q7: Are there any apps to calculate RD returns?
Yes, apps like BankBazaar, Groww, and banking apps from HDFC, SBI, and ICICI offer RD calculators.

Conclusion

A recurring deposit is one of the simplest and safest ways to cultivate the habit of saving. With predictable returns and zero market risk, it's a great option for those seeking financial discipline.

Using a recurring deposit calc empowers you to make informed decisions, experiment with different deposit amounts and durations, and plan your goals with clarity. Whether you're saving for a holiday, a future purchase, or building an emergency fund, RD calculators help you track your path to financial stability.

Start using one today—it only takes a few clicks to take control of your savings future.