Finvra Logo
Finvra

Recurring Deposit (RD) Calculator

Plan your savings with precision. Calculate the maturity value and total interest earned on your monthly deposits in Banks or Post Offices worldwide.

$
505K
0.1%8%

Avg USA ($) Rate: ~4.5%

Months
6M60M

* Check your bank's policy.

Maturity Value

$6,148
Total Investment$6,000
Total Interest$148

Investment Growth

What is a Recurring Deposit?

A Recurring Deposit (RD) is a special kind of Term Deposit offered by banks globally. Unlike a Fixed Deposit where you invest once, an RD allows you to deposit a fixed amount every month for a pre-decided tenure.

This makes it an excellent tool for people with regular income (like salary) to build a savings corpus securely while earning interest rates similar to Fixed Deposits.

The Standard RD Formula (Annuity)

M = P × [ (1+i)n - 1 ] / i × (1+i)
  • M = Maturity Value
  • P = Monthly Installment
  • n = Number of Months
  • i = Interest Rate per compounding period

RD vs. SIP

RDs offer guaranteed, risk-free returns (typically 5-8%). SIPs (Mutual Funds) carry market risk but offer higher potential returns (10-15%) over the long term.

Discipline Factor

RDs force a savings habit. Since the amount is deducted automatically each month, you save first and spend later.

Compare Your Options

FD Calculator
Lumpsum Savings
SIP Calculator
High Growth
Simple Interset
Simple Growth
Compound Interest
Visualizer

Frequently Asked Questions

How is RD interest calculated?
Interest on Recurring Deposits is calculated using the Compound Interest formula. In many Asian countries (like India), interest is compounded Quarterly. In the West (USA, UK), it is often compounded Monthly. This calculator supports both methods.
Is RD interest taxable?
In most countries, interest earned on deposits is considered taxable income. Banks may deduct tax at source (TDS) if the interest exceeds a specific threshold defined by local tax laws.
Can I withdraw my RD before maturity?
Yes, premature withdrawal is generally allowed, but banks usually charge a penalty. This often involves a reduction in the interest rate (e.g., 1% lower than the contracted rate) for the period the deposit was held.
What is the difference between RD and FD?
In a Fixed Deposit (FD), you deposit a lump sum once. In a Recurring Deposit (RD), you deposit a fixed amount every month. RD is ideal for salaried individuals who want to save a portion of their income regularly.

Disclaimer: This calculator provides estimates based on standard compounding formulas. Actual maturity amounts may vary slightly due to bank-specific policies, holidays, or rounding off.