Recurring Deposit Calculator

Calculating RD maturity manually is surprisingly error-prone. Unlike simple interest, where you multiply principal by rate by time, RD maturity requires summing the compound growth of every individual monthly instalment, that is 12 separate calculations for a 1-year RD, and 60 for a 5-year one. A single formula error compounds into a significant discrepancy.

This calculator removes that friction entirely and adds insights that manual calculation cannot provide:

• Instant what-if scenarios: Adjust your monthly deposit, rate, or tenure with a slider and see the maturity amount update in real time. Useful when you are deciding between a 12-month and 24-month RD, or comparing two banks offering different rates.
• Rate sensitivity analysis: The built-in Rate Sensitivity card shows your outcome at ±1% and ±2% from your chosen rate. If you are negotiating with your bank for a preferential rate, knowing that a 0.5% difference amounts to ₹8,000 more on a ₹5,000/month RD over 3 years gives you a concrete argument.
• Reverse mode for goal-based planning: Enter a target maturity amount and get the exact monthly deposit required, useful when saving towards a specific goal like a home down payment or a car purchase.
• Month-by-month schedule: See exactly how your balance grows each month, which is useful for financial planning and tax reporting (since you need to declare interest as it accrues).

Salaried professionals building emergency funds: An RD of 3–6 months' expenses over a 6–12 month tenure is one of the cleanest ways to build an emergency corpus. The calculator helps you find the monthly contribution needed to hit your target fund size, and the month-by-month schedule shows exactly when you will reach it.

Parents saving for children's near-term goals: School fees, a laptop for college, or a study trip, these are 1–3 year goals where capital safety matters more than maximum returns. An RD at a good bank rate, computed precisely with this tool, makes the planning concrete and stress-free.

Retirees and senior citizens: Indian banks offer higher RD rates (typically 0.25–0.75% p.a. extra) to senior citizens. This calculator helps retirees with pension income plan systematic savings from their monthly inflow, comparing how different tenures and compounding frequencies affect their maturity. The effective yield display is particularly useful since it shows the true return on the staggered deposits.

First-time investors: For someone who has never invested before, an RD is an excellent starting point, it builds the habit of monthly saving with zero risk. This calculator, combined with our SIP Calculator, helps first-time investors understand the return difference between a guaranteed RD and a market-linked SIP, so they can decide how to allocate their monthly surplus.

NRIs with NRO accounts: NRIs can open RDs in India through NRO accounts. The calculator works identically for NRI use, just input the rate your bank quotes and the tenure.

Maturity Amount is the total payout you receive at the end of the tenure, principal plus all interest earned. This is the guaranteed number your bank will transfer to your savings account on the maturity date. It is the primary output and the figure to use when comparing your RD against other fixed-income options.

Total Deposited is the sum of all your monthly contributions. Subtracting this from the Maturity Amount gives you the interest earned, but the calculator surfaces both numbers explicitly so you do not have to subtract manually.

Interest Earned is the profit the bank pays you over and above your principal. Watch this number carefully: on a short tenure (3–6 months), interest is modest. On a 5-year RD, interest can amount to 30–40% of total deposits, a meaningful contribution to your corpus.

Effective Yield is the annualised return on your total capital deployed, accounting for the staggered nature of deposits. A 7.5% RD compounded quarterly typically has an effective yield of 7.7–7.9% p.a. This metric lets you compare RDs fairly against Compound Interest Calculator instruments where the full principal is invested upfront.

Corpus Breakdown donut shows the invested vs. interest split visually. A high interest percentage (above 25%) signals a healthy tenure and compounding effect. A very low interest percentage (below 5%) suggests a short tenure where the RD's compounding advantage has not had time to work.

Growth Chart plots running balance against cumulative deposits month by month. The widening gap between the two lines is your compounding in action, the wider it gets towards the end, the more effective your RD is.

Rate Sensitivity card quantifies the cost of accepting a lower rate, directly actionable when you are comparing offers from different banks.

1. Enter your Monthly Deposit, the fixed amount you will deposit each month. Use the slider for quick exploration, or type an exact value. Most salaried investors start between ₹1,000 and ₹10,000 per month.

2. Set the Interest Rate, enter the annual interest rate (% p.a.) your bank is offering for your chosen tenure. Current SBI RD rates range from 6.5% to 7.1% p.a. for general customers; HDFC and ICICI typically offer 7.0–7.5% p.a. for tenures of 1–2 years. Senior citizens should add the applicable premium (usually +0.25–0.75%).

3. Choose the Tenure, enter the number of months for your RD. Bank RDs range from 3 months to 10 years. Common choices are 12 months (1 year), 24 months (2 years), and 60 months (5 years). Longer tenures lock in the current rate and benefit more from compounding.

4. Select Compounding Frequency, choose Quarterly (the default for most Indian banks), Monthly, or Annually. If you are unsure, leave it at Quarterly, it matches SBI, HDFC, ICICI, and most other major banks.

5. Read the results, your Maturity Amount, Total Deposited, Interest Earned, and Effective Yield update instantly. Review the Corpus Breakdown for the invested-vs-interest split, and check the Rate Sensitivity card to see how a 1% difference in rate affects your final number.

6. Use Reverse Mode for goal-based planning, click "Reverse" and enter a target maturity amount (e.g. ₹1,00,000). Keep rate, tenure, and compounding fixed, and the calculator shows you the exact Monthly Deposit you need to hit that goal.

7. Scroll down to the Month-by-Month Schedule, this table shows your running balance, cumulative deposits, and interest accrued for every month of the tenure. Useful for tracking your RD progress and for declaring the correct interest amount in your ITR each financial year.