RD Calculator
See what a monthly recurring deposit really builds — the maturity value, the interest your deposits earn, and the honest real return after tax and inflation.
Plan your RD
5.0 years
Popular plans
Results update live — calculations run in your browser, no signup.
₹3.60 L
Matures in 5 years — 60 deposits of ₹5,000, earning 20.0% on top of what you put in
After 30% tax and 0% inflation, your money grows -1.0% per year in real terms — below inflation, so it slowly loses purchasing power.
Assumes a fixed 7.00% rate compounded monthly for the full tenure. Maturity is gross — before TDS/tax — and many banks compound quarterly, so a real quote may differ slightly.
Of the ₹3.60 L maturity, how much is your own deposits vs interest.
Interest is 17% of your maturity — the rest is money you put in yourself.
Cumulative deposits, balance, interest and total return at each year-end of this 5-year tenure.
| Year | Deposited | Value | Interest | Total return |
|---|---|---|---|---|
| Year 1 | ₹60,000 | ₹62,324 | ₹2,324 | +3.9% |
| Year 2 | ₹1.20 L | ₹1.29 L | ₹9,154 | +7.6% |
| Year 3 | ₹1.80 L | ₹2.01 L | ₹20,815 | +11.6% |
| Year 4 | ₹2.40 L | ₹2.78 L | ₹37,656 | +15.7% |
| Year 5 | ₹3.00 L | ₹3.60 L | ₹60,053 | +20.0% |
Compounded monthly across 60 deposits. Many banks compound quarterly, so a real bank quote may differ slightly.
Tax on your RD interest
Interest earned
₹60,053
Tax (30%)
−₹18,016
After tax
₹42,037
After tax, your RD trails inflation by 1.0% per year.
Your RD, the same total as a one-time FD, and the same monthly habit run as an equity SIP (nominal value).
RD 7.0%
₹5,000/mo
FD 7%
lump sum upfront
SIP 12%
same monthly habit
FD (7%) and SIP (12%) figures are illustrative long-term averages, not guaranteed. An RD and FD are fixed and safe; a SIP is market-linked, higher potential return and higher risk.
Key insight
An RD turns a monthly habit into a safe, predictable lump sum — but after tax and inflation, your money slowly loses purchasing power. For long-term goals, a SIP into equity usually builds far more, with more risk.
- Interest is 17% of the maturity — the rest is your own deposits.
- At 7.0% a year, money doubles roughly every 10.2 years.
- Your ₹3.60 L will buy what ₹3.42 L buys today.
Money doubles every 10.2 years
At 7.0% a year, a sum doubles every 10.2 years (Rule of 72 ≈ 10.3 yrs). Your earliest deposits earn interest the longest — which is why starting the habit early matters more than the exact amount.
Your plan at a glance
- Monthly deposit: ₹5,000 for 60 months
- Total deposited: ₹3.00 L
- Interest earned: ₹60,053 (20.0% on deposits)
- Interest after 30% tax: ₹42,037
- Maturity in 5 years: ₹3.60 L
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Your plan: ₹5,000/month for 5 years → about ₹3.60 L.
Plan the rest of your money life
Pair your RD with a one-time FD, tax-free PPF savings, or a market-linked SIP.
How an RD maturity is calculated
FV = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i)
- FV
- maturity value (gross, before tax)
- P
- monthly deposit
- i
- monthly rate = annual rate ÷ 12 ÷ 100
- n
- number of monthly deposits
Worked example
With your inputs — ₹5,000/month at 7.00% for 5 years: the monthly rate is i = 0.583% and n = 60 deposits. Each instalment compounds for the months it stays invested, so the ₹3.00 L you put in grows to a maturity of about ₹3.60 L — roughly ₹60,053 of interest. This tool compounds monthly for a level deposit; it is an estimate before tax, and many banks compound quarterly so a real quote may differ slightly.
Most asked RD questions
An RD lets you deposit a fixed amount every month for a set tenure at a fixed interest rate. It suits people who want to save regularly from monthly income rather than park a lump sum, and it brings the discipline of a SIP with the safety of a bank deposit.
Each monthly deposit earns interest only for the time it stays invested, so your earliest deposits do the most work. This tool compounds monthly for a clean month-by-month series; many banks compound quarterly, so your actual maturity may differ slightly.
Only just. A typical RD pays around 7%, while long-run inflation runs near 6%. That leaves a small positive real return — your money keeps a little ahead of rising prices, but an RD is a savings tool, not a wealth-builder. This page shows your real (after-inflation) return so you can judge for yourself.
Yes. RD interest is added to your income and taxed at your slab rate, and banks deduct TDS once interest crosses the threshold. The maturity shown here is gross — before any TDS or tax — but the real-return panel lets you apply your tax rate to see what you actually keep.
Most banks allow premature closure but usually pay a lower rate and may charge a penalty, so the maturity shown here assumes you hold the RD for the full tenure.
No. The FD, SIP and inflation figures here are typical long-term or current published rates shown for context only — illustrative reference rates, not guarantees. Actual returns vary year to year.
The complete guide to recurring deposits
How an RD builds your money
A recurring deposit commits you to depositing a fixed amount every month for a chosen tenure at a fixed interest rate. Because each instalment earns interest only for the time it stays invested, your earliest deposits do the most work — which is why a longer tenure or a higher monthly amount lifts the maturity more than the rate alone.
Nominal return vs real return
The headline rate is your nominal return. What actually grows your wealth is the real return — what is left after tax takes a slab-rate cut of the interest and inflation erodes purchasing power. A 7% RD at 30% tax effectively earns about 4.9% on the interest portion; against ~6% inflation, that is a small loss in real terms. This page shows the figure in today's money so you see the true picture.
Taxation in India
RD interest is fully taxable: it is added to your income and taxed at your slab rate, and banks deduct TDS once interest crosses the threshold in a year. The maturity shown here is gross — before any TDS or tax — so your in-hand amount will be a little lower. Use the tax toggle to see what you actually keep. Rules change; verify with a tax adviser.
RD vs FD vs SIP
An FD invests a lump sum once; an RD spreads deposits across months from your income; a SIP does the same into market-linked funds for higher potential returns and higher risk. If you want guaranteed growth from a monthly habit, an RD fits. If you can accept volatility for a shot at beating inflation more meaningfully, a SIP is the usual next step. The benchmark rates here are illustrative references, not promises.