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RD Calculator

Investing is crucial for achieving financial goals and securing a stable future. It not only helps in wealth accumulation but also provides a hedge against inflation. Among various investment options, Recurring Deposits (RDs) offer a disciplined and low-risk approach to saving and growing your money over time.

Monthly Investment

Interest rate






1 Yr

30 Yrs

The future value of investment will be

Invested Amount


Estimated Return


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What is a RD Calculator?

An RD calculator is a valuable financial tool on Angel One designed to help individuals calculate their investment growth in RDs. This online calculator takes basic yet crucial factors such as the investment amount, duration, and interest rate into consideration. And in less than a minute, it displays the future value of the investment.

How does RD Calculator Work?

The working of a RD calculator is simple and straightforward. It takes the primary factors of your investment into account and displays the future value of your investment along with the breakdown of the investment made and estimates returns. To calculate the maturity amount of the RD investment, the online calculator uses the RD calculator formula.

How Can a RD Calculator Help You?

The RD calculator accurately predicts the maturity amount of the RD investment. This precise projection enables individuals to set realistic financial goals, make effective budgetary plans, and adjust their monthly contributions according to their affordability and objectives. Whether saving for a major purchase, education, marriage, or retirement, the RD calculator can help you out in planning.

What is RD Calculator Formula for Maturity

The calculation of interest on an RD interest calculator is done using the following formula:

M = R[(1+i)^n-1]/(1-(1+i)^(-1/3) )


M = Maturity Value

R = Monthly Instalment

n = Number of quarters

i = Rate of interest/400. Interest on RD is compounded quarterly, in most banks.

Here is an example to understand the formula for RD calculation easily.

Let us say Sudhanshu starts investing ₹50,000 in a recurring account for a tenure of 1 year (4 quarters). The interest rate that his RD account offers is 6%. Now let us use the above formula to calculate the final maturity amount.

Maturity amount = 50,000[(1+0.015)^4-1]/(1-(1+0.015)^(-1/3)) = ₹6,19,762

Therefore, for an RD of ₹50,000 per month for one year at a 6% interest rate, the maturity amount will be ₹6,19,762.

How To Use the Angel One RD Calculator Online?

To avoid manual calculations, which are prone to errors, an online recurring deposit calculator comes to your rescue. You can use Angel One RD Calculator online and calculate your RD maturity amount in seconds without any hassle.

Follow the steps below to use the Angel One RD Calculator online:

  1. Enter your monthly investment amount
  2. Enter the interest rate on the RD
  3. Enter the duration of the investment

That's it. The calculator uses the RD calculator formula and calculates the future value of your investment, initial investment made and estimates returns.

Let us consider an example to understand the usage of the RD calculator better.

Suppose you are planning to buy a car in the next 5 years and want to invest ₹15,000 monthly in an RD of 5% interest rate. Enter these details in the RD return calculator as follows:

  • Monthly Investment: ₹15,000
  • Interest rate: 5%
  • Duration of the investment: 5 years

The RD return calculator checks the details entered and estimates the results as follows.

  • The future value of the investment will be ₹1,023,783
  • Invested amount - ₹9,00,000
  • Estimated Return - ₹1,23,783

Now with the estimated results, you can check if the maturity amount will be sufficient for your car purchase. If it's not sufficient you need to increase the monthly investment amount or find an RD with a higher interest rate. This way, you can use the recurring deposit calculator for multiple use cases and find which use case suits your financial needs.

Benefits of Using RD Maturity Calculator

  • Accurate maturity projections: The Angel One RD calculator provides precise estimates of the maturity amount, helping individuals set realistic savings goals and expectations.
  • Compare different scenarios: Users can experiment with different variables such as principal, tenure, and interest rates to explore various saving strategies and outcomes.
  • Informed investment choices: By visualising how contributions grow over time, individuals can make well-informed decisions about their RD investments.
  • Budget planning: The Angel One RD calculator helps in planning monthly contributions that align with personal budgets, ensuring consistent and sustainable savings.
  • Goal setting: Whether short-term or long-term, the Angel One RD calculator assists in defining and achieving financial goals through systematic contributions.
  • Error-free results: The RD deposit calculator eliminates the need for manual calculations, saving time and effort while providing quick insights into potential returns.
  • Free and easy to use: Angel One RD calculators are easily accessible online for free, making it a user-friendly tool for everyone, regardless of their financial expertise.

What is a Recurring Deposit (RD)?

A recurring deposit is a savings option where an individual invests a fixed amount of money regularly, usually on a monthly basis. The investment period and interest rate are fixed in advance, and the investor earns interest on the deposit at the end of the term.

The amount invested in an RD is relatively low compared to other investment options, making it accessible to a wider range of individuals. This investment is designed to promote disciplined saving and provide an attractive return on investment. The tenure of an RD is 3 months, 6 months, 9 months, etc., in the multiples of 3. To calculate the returns on your RD investment, you can use the RD calculator on Angel One.

Factors Affecting RD Interest Rates

The interest rate on recurring deposits keeps changing from time to time. There are several factors that can impact the RD interest rates.

  • Applicant's age - The interest rate of an RD is not the same for senior citizens and younger age group applicants. Most banks or financial institutions offer senior citizens a higher rate of interest.
  • RBI policies - Changes in the RBI's repo rate, which is the rate at which banks borrow from the central bank, directly impact lending rates, including RD rates.
  • Type of RD account - The type of RD account you get also can impact the interest rate. The RD interest calculator helps you calculate the interest amount, regardless of the type of RD account.
  • Economic conditions - Overall economic growth, inflation rates, and monetary policies set by the RBI play a crucial role in determining RD interest rates.
  • Duration of the RD - Some banks offer higher interest rates on deposits that are set for longer terms, while some offer higher interest rates for medium-term deposits.
  • Bank's profitability: A bank's financial health and profitability influence its ability to offer competitive RD rates.

Factors to Consider Before Opting to Open RD Account Online

There are certain factors that you need to consider before opening an RD account.

  • Investment amount: Determine the monthly deposit amount you can comfortably commit to. Different banks have varying minimum and maximum deposit limits for RD accounts. Pick the one that fits into your budget.
  • Withdrawals: Understand the rules for premature withdrawal. While some banks allow it with certain penalties, others may restrict withdrawals until the tenure is complete.
  • Taxability: RD interest is subject to taxation based on your income tax slab. Keep in mind the tax implications while estimating your returns.
  • Interest rate: The most important factor in an RD is the interest rate. Research and compare the interest rates offered by different banks for RD accounts. Higher interest rates can lead to better returns over the tenure.
  • Tenure: Choose a tenure that aligns with your financial goals. Longer tenures generally offer higher interest rates, contributing to greater savings. However, it varies with banks.
  • Nomination facility: Make sure you can nominate a beneficiary for the RD account in case of unforeseen circumstances.
  • Online access: Having online access to manage your RD account, make deposits, and monitor interest accrual.
  • Additional benefits: Some banks may provide additional benefits, such as a loan against the RD or the option to convert the RD into a fixed deposit.
  • The credibility of the institution: Choose a reputable bank or financial institution with a good track record for stability and customer service.

Can NRI Apply for RD in India?

Yes. NRIs can apply for an NRE RD account or an NRO RD account in India.

  • NRE RD account - NRE RD (Non-Resident External Recurring Deposit) accounts are exclusive savings options for NRIs, allowing them to deposit foreign earnings in India. These accounts offer tax-free interest, enabling NRIs to grow their savings without worrying about taxation while also providing the flexibility to freely transfer funds back to their overseas accounts.
  • NRO RD account - NRO RD (Non-Resident Ordinary Recurring Deposit) accounts are tailored for NRIs to manage their Indian income and earnings. While the interest earned is taxable, plus the additional CESS, NRO RD accounts do allow the repatriation of interest earnings.

Recurring Deposit Tax Benefit

It is important to note that TDS (Tax Deducted at Source) is applicable on RD if the interest earned is more than ₹40,000 for individuals and ₹50,000 for senior citizens. And investors with no taxable income can submit Form 15G to avoid TDS on their RDs.

RD Calculator FAQs

Can I open RD for 3 months?

Recurring Deposit (RD) tenures vary from bank to bank. However, a short-term RD could be from as little as 6 months to approximately 4 years.

Can I withdraw RD anytime?

No, you generally cannot withdraw money from a Recurring Deposit (RD) account at any time. RDs are similar to Fixed Deposits (FDs) in that they are meant for saving money over a fixed period of time.

How is TDS calculated on RD?

The investor's annual income will include the amount deposited in a recurring deposit each year. A 10% TDS (Tax Deducted at Source) will be applied to your interest on your recurring deposit. No TDS is deducted if the interest you get on your recurring deposit is less than or equal to ₹ 10,000.

How do I pay my RD monthly?

For most banks, internet banking is one of the ways to make an online payment for RDs. You can visit the branch physically and deposit the RD amount.

How many times can RD be extended?

The possibility of extending an RD and how many times you can do so depends on the specific bank or financial institution offering the RD scheme. However, in general, most RDs can be extended once for an additional period equal to the initial tenure.

How do I withdraw my RD amount?

The process of withdrawing your RD amount depends on whether you want to withdraw it at maturity or make an early withdrawal. At maturity, you just need to close the RD account, which means you can withdraw the entire amount you invested in the account, along with the interest you earned on it. On the other hand, early withdrawals often come with penalties and reduced interest rates.

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