What is a Recurring Deposit (RD) Calculator?

A Recurring Deposit (RD) calculator helps you forecast the maturity value of your disciplined monthly savings. By depositing a fixed amount into a bank account every month for a specific tenure, you earn compounding interest, safely growing your wealth without market risks.

How is RD Interest Calculated?

Unlike a Fixed Deposit where the entire principal earns interest for the full term, in an RD, each monthly installment earns interest for a progressively shorter duration. Typically, banks compound RD interest quarterly.

The Standard Formula

Maturity Value = Monthly Deposit × [((1 + R/400)^N - 1) / (1 - (1 + R/400)^(-1/3))]

Where R = Annual Rate, and N = Total Quarters

Why Choose an RD?

Discipline: Forces you to save a fixed amount automatically from your paycheck before you can spend it.
Safety: Bank RDs offer guaranteed, fixed returns immune to stock market volatility.
Flexibility: Tenures can range from as little as 6 months up to 10 years, allowing you to align the RD with short-term financial goals.