Calculate interest payouts for regular monthly RD savings schemes. Compounded quarterly by banks.
Total Principal Deposited
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Total Interest Earned
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RD Maturity Value
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Invested Principal
₹0(0%)
Interest Earned
₹0(0%)
What is a Recurring Deposit (RD)?
A Recurring Deposit is a systematic savings tool that allows you to deposit a fixed amount every month. It is perfect for salaried individuals looking to build a disciplined savings habit while earning fixed, guaranteed returns identical to standard FDs.
How RD Interest is Calculated
Unlike an FD where the entire lump sum earns interest for the full tenure, in an RD, each monthly installment earns interest for a different duration. The interest is compounded quarterly, making manual calculations complex—which is why this RD calculator is essential.
Taxation Rules
Just like FDs, the interest earned on an RD is fully taxable as per your income tax slab. TDS at 10% applies if the interest exceeds the ₹40,000 threshold (₹50,000 for senior citizens) in a given financial year.
A Recurring Deposit (RD) offers the best of both worlds: the strict savings discipline of an SIP combined with the absolute capital safety and guaranteed returns of a Fixed Deposit. It is ideal for salaried individuals looking to save for a short-term goal (like a vacation or a gadget) over a 1 to 3-year horizon.
How RD Interest is Calculated
Calculating RD maturity is complex because each monthly installment is invested for a different duration. For example, in a 1-year RD, your first installment earns interest for 12 months, but your final installment earns interest for only 1 month. The interest is compounded quarterly. This staggered investment timeline is exactly why a specialized RD calculator is required to project the final maturity value.
Penalties and Taxation
If you miss an RD installment, banks typically levy a penalty (often ₹1.5 to ₹2 per ₹100 of the installment amount). If you break the RD before maturity, the bank will pay you interest at a lower rate than originally contracted.
Taxation on RDs is identical to FDs: the interest is fully taxable as per your slab rate, and 10% TDS applies if the annual interest exceeds ₹40,000.
Frequently Asked Questions (FAQs)
The calculator uses standard mathematical compounding formulas matching Indian banking and investment regulations.
Yes. All calculations run locally in your browser. We never transmit or store your inputs on any server, ensuring 100% privacy.
Yes. All interest and return rate inputs support up to two decimal places (e.g. 8.55%).
Yes, all calculators and planning tools on PrepayMyLoan.com are 100% free and open to the public.
Yes. The interface is mobile-first, responsive, and works smoothly on all smartphone and tablet viewports.
Inflation reduces the purchasing power of your money. A 6% inflation rate doubles your cost of living every 12 years, requiring a larger retirement corpus.
A method where interest is computed only on the outstanding principal balance. As you pay down principal, interest outgo falls.
Flat rates calculate interest on the initial principal for the entire tenure, making them much more expensive than reducing-balance loans.
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