Recurring Deposit Calculator

Recurring Deposit Calculator with Monthly Contributions, Compounding & Yearly Breakdown.

Yearly Breakup

Recurring Deposit (RD) Calculator Explanation

What is a Recurring Deposit?

A Recurring Deposit (RD) is a savings instrument where you deposit a fixed amount monthly for a predetermined tenure (e.g., 6 months to 10 years). The bank pays compound interest (usually quarterly) at a fixed rate. At maturity, you receive the total principal + interest.

Key Features:

  • Fixed Monthly Deposits: E.g., $5,000/month for 24 months
  • Fixed Interest Rate: Unaffected by market fluctuations
  • Low Risk: Guaranteed returns
  • Flexible Tenures: 6 months to 10 years
  • Taxable Interest: Added to your income

RD Formula

The maturity value is calculated using quarterly compounding:

Maturity Amount = P × [(1 + r/n)(n×t) - 1] / [1 - (1 + r/n)(-1/3)]

Where:

  • P = Monthly installment (e.g., $5,000)
  • r = Annual interest rate (e.g., 6% → 0.06)
  • n = Compounding frequency (4 for quarterly)
  • t = Tenure in years

How to Use Our RD Calculator

calculator provides 3 visual outputs:

  • Pie Chart: Breaks down principal vs. interest.
  • Table Data: Shows month-wise growth.
  • Result Summary: Principal, interest, and total.

Step-by-Step Guide:

  • 1. Enter Inputs:
    • Monthly Deposit (e.g., $10,000)
    • Interest Rate (e.g., 7%)
    • Tenure Type (Months / Years)
    • Tenure (e.g., 24 months)
  • 2. Calculation :
    • Monthly Deposit (e.g., ₹10,000)
    • Interest Rate (e.g., 7%)
    • Tenure Type (e.g., months)
    • Number of Months (e.g., 24 months)
  • 3. Click "Calculate":
    • Total Principal = Monthly Deposit × Tenure
    • Total Interest = Compounded quarterly
    • Maturity Value = Principal + Interest
  • 4. The calculator computes:
    • View Results:
    • Pie Chart: Visualizes the % of principal (e.g., 94%) vs. interest (6%).
    • Table: Lists each month’s cumulative balance.

Frequently Asked Questions (FAQs)

1. What is a Recurring Deposit (RD)?

A Recurring Deposit (RD) is a term deposit where you invest a fixed amount monthly for a predetermined tenure, earning fixed interest. At maturity, you receive the principal plus compounded interest.

Example: Investing ₹5,000/month for 12 months at 6% p.a. yields ~₹61,800 at maturity.
2. How does an RD calculator work?

It estimates maturity value using:

  • Monthly deposit amount
  • Tenure (months/years)
  • Interest rate (compounded quarterly)
Input: ₹10,000/month, 2 years, 7% p.a. → Output: ~₹2,56,000.
3. What’s the difference between RD and FD?
FeatureRDFD
Deposit TypeMonthly installmentsLump-sum
Interest PayoutAt maturityMonthly/Quarterly/Maturity
Best ForSalaried individualsLump-sum investors
4. How is RD interest calculated?

RDs use quarterly compounding:

Maturity Amount = P × (1 + r/n)n×t

Example: ₹5,000/month at 6% for 1 year → Principal: ₹60,000, Maturity: ~₹61,800.
5. Can RD interest rates change during tenure?

No, RDs typically have fixed rates unless it’s a rare floating-rate RD.

6. Can I skip an RD installment?

Most banks allow 1-2 missed payments/year but may penalize or close the RD for repeated defaults.

7. Can I withdraw my RD before maturity?

Yes, but with penalties (0.5%–1% lower interest). Partial withdrawals may be allowed.

Example: Breaking a 12-month RD after 6 months may reduce interest by 1%.
8. Name some countries which offer RDs
  • USA: Similar to "CD Laddering" (1%–3% interest).
  • UAE: Banks like Emirates NBD offer RD plans.
  • India: Highest rates (~5%–7%).
9. Can I take a loan against my RD?

Yes, some banks offer loans up to 90% of the RD balance at lower rates.

10. How does RD compare to SIPs?
FactorRDSIP (Equity)
ReturnsFixed (6–7%)Market-linked (10–12% avg.)
RiskZeroHigh
LiquidityLow (penalty)High (no penalty)

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