Personal Finance

RD Calculator: Recurring Deposit Interest Rate Calculator

Recurring deposits are investment methods that look a lot like fixed deposits. The primary difference between fixed deposits and recurring deposits is that recurring deposits allow individuals to invest a specific amount of money at regular intervals rather than a lump sum all at once.

When you invest in an RD, you form the habit of saving and making investments in an organized manner. These investments are ideal for people who have a steady source of income (For instance, a normal salaried professional).

When you create an account for an RD, you should calculate the potential returns on your investments. And a recurring deposit calculator can help you with this.

Recurring Deposit Calculator Online India

Getting the Help of an RD Calculator

There are a variety of options for you to invest your funds in today’s world. Actually, you can diversify your financial portfolio by utilizing fixed-income instruments such as RDs as well as other avenues such as stocks. If you wish to start investing in stocks, you must first create a Demat account.

However, with a recurring deposit, you can begin using your own savings account. Any investor, particularly a beginner, may find it challenging to perform recurring deposit return estimations, and an RD calculator can help investors figure out rates of return in this case.

A recurring deposit, just like the name implies, is a continuous method of investing. Returns on investments can become difficult to track for many investors. The interest earned on a recurring deposit is compounded every quarter.

Furthermore, many parameters are involved in the calculation, making it more challenging to perform the calculations. Bringing RD interest rates into account, an RD calculator eliminates the need for you to perform manual calculations, allowing the investor to learn the precise amounts your funds could accumulate over a specific period of time.

How Can an RD Calculator Help You?

The only calculation the investor must perform manually regarding RD investment is the TDS deduction. Recurring deposits are subject to TDS tax benefits under the latest RBI (Reserve Bank of India) regulations.

Nevertheless, this analysis is not standardized and may differ between one finance company to the other. So, the only thing an RD calculator can’t help you with is the TDS deduction. Aside from that, an RD interest calculator has many other advantages.

Let’s take a look at some of the most well-known uses of RD calculators:

  • The calculator helps investors organize their future finances more clearly by estimating the exact amount their investments will yield.
  • It is simple to utilize and can save investors a considerable amount of time, which they could instead use constructively on other things.
  • The precision of these calculators is unquestionable. For wise financial management, accurate figures are critical.

What is the Formula to Determine RD Maturity?

The RD calculators use four main variables to calculate the maturity amount. The calculator takes the variables and puts them on a specific formula to give you an accurate estimate of the maturity amount at the end of the tenure. The formula to determine RD maturity is:

A = P * (1 + R/N)^(N * t)

Here, in this formula:

  • A = The maturity amount at the end of the tenure.
  • P = Recurring deposit instalments every month.
  • R = RD interest rates.
  • N = Compounding frequency (No. of quarters)
  • t = Tenure of the RD.

An Example

It is the conventional formula for determining the maturity amount of an RD, regardless of how much was invested or the length of the investment. All you are required to do is enter the variables.

For example, suppose a person opens an RD account with a commitment of Rs. 5000 per month for a period of one year or four quarters. This account has an interest rate of 8%. The following formula is used to determine the deposit’s final maturity sum:

A = P * (1 + R/N)^(N * t)

= 5000*(1+.0825/4)~(4*12/12) = 5425.44

= 5000*(1+.0825/4) (4*11/12) = 5388.64




= 5000*(1+.0825/4)~(4*1/12) = 5034.14.

By aggregating all the results above, we get the final maturity sum to be A = Rs. 62,730.85.

Doing these calculations manually is no easy feat and takes too much time. But with an online RD calculator, you can make these calculations within a few seconds.

Benefits of Using an RD Maturity Calculator

Now, you know the RD maturity calculator and how to calculate the maturity amount using it. You also know how this online calculator comes up with an accurate estimation of the maturity amount within a blink of an eye, which would have taken you a lot of time to calculate manually.

Therefore, it’s time to show you some of the most common benefits of using an RD maturity calculator.

  • It serves as a time-saving tool. It calculates within seconds, and the overall process, beginning with visiting the calculator’s website, requires no more than a few minutes.
  • It never gives you a wrong estimation. If you enter each variable correctly, there is no room for error or uncertainty.
  • Anyone can use this RD calculator in India as often as they want. You can enter one or more variables in as many ways as you wish.

A recurring deposit is regarded as a secure financial commitment with the possibility of receiving high returns. You can use online calculators to evaluate the performance of different other investment vehicles for a similar amount of sum and make a suitable choice.


It is easy to open a recurring deposit account and start to pay the instalments to invest money in it. However, if we are calculating the final maturity amount and making a plan to get the instalments right to reach a target, well, not so much.

You need to use a recurring deposit calculator to plan your RD investments wisely. The calculator can help you get a general idea of how much you need to pay in instalments to get the desired returns on your investments at the end of the tenure. Use the calculator and plan your RD investment wisely to get as many benefits as possible.

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About the author

Ashish Arora

Ashish Arora is a digital marketer and blockchain enthusiast. He is running his many blogs and sharing his 3.5+ years of experience with the online community.