RD Calculator
A recurring deposit is a fixed deposit you build one month at a time: the same amount leaves your account every month for a set tenure, each instalment earning interest until maturity. It suits money you can spare monthly but want protected from market swings.
Because your early instalments compound for longer than your later ones, the interest is more than "rate × total deposited". This calculator uses quarterly compounding — the norm at Indian banks — to show the maturity value and exactly how much of it is interest.
After 31% tax (incl. 4% cess) on the interest, you keep about 3,41,049.
How it works
- 01Each monthly deposit compounds from the month you pay it until maturity, so earlier instalments earn more.
- 02Interest is compounded quarterly, converted to an effective monthly rate to value the stream of deposits accurately.
- 03"Interest earned" is the maturity value minus everything you deposited.
Frequently asked
RD or SIP — which should I pick?+
An RD gives a guaranteed, known maturity value; a SIP in equity has higher expected returns but can fall in any given year. For money you need within 2–3 years, an RD or debt fund is safer. For long-term wealth, a SIP usually wins.
Is RD interest taxable?+
Yes — RD interest is added to your income and taxed at your slab rate, and banks deduct TDS once it crosses the annual threshold. The after-tax return is lower than the headline rate.
Can I miss an RD instalment?+
Banks allow it with a small penalty, but repeated misses can lead to the RD being closed early at a reduced rate. Automate the transfer so it never depends on you remembering.