HomeFinancial ToolsRD Calculator
More Calculators

RD Calculator

Total Value₹1,99,122
Monthly Investment
Interest Rate
Time Period
Total Value₹1,99,122
Est. Returns₹19,122
Invested Amount₹1,80,000
Total Value₹1,99,122

A recurring deposit is a type of term deposit in which users with a consistent source of income deposit a fixed amount of money into a recurring deposit account on a monthly basis. A recurring deposit account encourages people to save by depositing a predetermined amount each month for a set period of time.

Calculating RD returns after maturity is a time-consuming and difficult task. As a result, a Paytm RD calculator can assist you in calculating the same in a matter of seconds.

What can an RD calculator do for you?

Banks provide a variety of recurring deposits for regular people, children, senior citizens, NRIs, and others; however, the interest rate on these accounts varies. Calculating interest on the basis of RD types may take some time. As a result, an RD calculator eliminates the hassle of manually calculating the sum a user will receive after maturity and displays the result in seconds.

What is the formula to calculate RD interest?

The following formula is used to calculate the maturity value of an RD.

M=R[(1+i) (n-1)]/1-(1+i)(-1/3))
Where, M = Maturity value
R = Monthly Installment
N = number of quarters (tenure)
i = Rate of interest/400

Monthly installment (R )
This is the monthly amount invested in the RD account. The minimum deposit amount varies by bank and can be as low as Rs 10 in some cases.

Rate of Interest (i)
The interest earned is determined by the amount deposited in the RD account, the interest rate offered by the bank, and the term of the RD.

Tenure (n)
It is the time period for which funds are held in the RD account. In general, RD tenure ranges from 6 months to 10 years.

For example, Ved wants to invest INR 5,000 each month for 24 months at an interest rate of 8% per annum. When we enter these values into the formula, we get

M=5,000[(1+8/400) (8-1)]/1-(1+8/400)(-1/3))
M=INR 1,26,369

The maturity value of Ved’s RD investment is INR 1,26,369.

The calculation appears to be simple, but it is not. As a result, an RD interest calculator can save time while providing accurate results.

How to use the RD calculator?

A Recurring Deposit calculator can help you with your calculations. It is very simple to use and provides very accurate results. Investors can save a significant amount of time by using it to calculate maturity amounts from RDs and to compare multiple RDs. Investors can plan their finances more clearly if they use an RD calculator because they will know the exact maturity value of their RD investment.

To use the RD maturity calculator, investors must take the following steps.

  • Enter the amount you want to invest on a monthly basis
  • The following step is to enter the investment period in years. Enter the tenure using the slider.
  • The final step is to enter the RD's interest rate. Enter your interest using the slider.

What are the advantages of the RD calculator?

Following are the benefits of using an RD calculator:

Easy to use: The RD calculator is very simple to use. All that is required is to enter the values for the monthly deposit, the RD rate, and the number of years to invest. The RD Calculator accurately calculates the maturity amount.

Time-saving: Using an RD calculator can help investors save time. It can perform complex calculations in seconds. It saves the investor from having to perform manual calculations.

Future planning: The calculator allows investors to plan their future with great precision because it displays the exact value of their investment.

Accuracy: The calculator displays accurate results when the inputs are correctly entered.

Comparison: RDs are available from banks and other financial institutions. Investors can compare the maturity values of multiple RDs in seconds by using an RD calculator.

Free to use: The Paytm RD calculator is free to use, and the investor can use it as often as he or she wants to calculate the returns on RDs with different tenures and interest rates.

Frequently Asked Questions


What are Recurring Deposits (RD), and how do they work?
A recurring deposit (RD) is a type of investment that requires regular monthly fixed deposits for a set period of time and pays an interest rate. When an RD matures, the investor receives a lump sum plus interest. They are similar to fixed deposits, but they require regular investment.
Is it possible to save tax on recurring deposits?
Yes, RDs are tax savers, and tax can be saved on recurring deposits if the money is deposited in the recurring deposit account for a medium-term or long-term period of time.
What happens if I don’t pay my monthly deposit on time?
Even a one-day delay in your instalment payment will result in an interest penalty or a cash penalty. In either case, your maturity amount will be affected. Some banks reserve the right to close your RD account if you have more than six outstanding instalments.
How do I withdraw the principal amount deposited in a recurring deposit account before it matures?
A depositor should make a request to the bank for the premature withdrawal of a recurring deposit account. The interest is only paid for the time the money was kept in the account.
Is Tax Deduction at Source (TDS) applicable to Recurring Deposit Interest?
Yes, TDS of 10% is levied on interest earnings. TDS will be deducted if the interest on the recurring deposits exceeds Rs.10,000.
Can I withdraw money from my RD account in instalments?
Partial withdrawals are not permitted. Furthermore, you cannot choose to receive only the interest component on a regular basis.
How to calculate the Recurring Deposit maturity amount?
Use the Paytm RD calculator to calculate your RD maturity amount. The calculator is simple to use and can produce an exact result by entering details such as principal amount, tenure, and interest rate.
Is RD better than FD?
You must choose between a fixed deposit and a recurring deposit based on the amount of money you have to invest. For example, if you have a large sum of money, you can put it into FDs. Recurring deposits, on the other hand, enable you to invest small amounts on a regular basis and build up a sizable corpus over time.
Is it possible to add nominees to my Recurring Deposit account?
Yes, nominees can be added to your Recurring Deposit account.
What is the minimum deposit amount for an RD account?
The minimum deposit amount varies by bank and can be as low as Rs.10.
Are there any additional benefits for senior citizens on recurring deposits?
Yes, banks usually offer slightly higher interest rates than standard deposits. Banks typically offer 0.25 % to 0.75 % higher interest than standard RDs.
Can I redeem my RD before it matures?
Yes, you can withdraw the amount from your RD before maturity; however, there is a penalty for doing so.
HomeFinancial ToolsRD Calculator