RD Calculator (India) — Maturity & Interest, Any Rate or Tenure
RD calculator with exact quarterly compounding formula. Calculate maturity, invested, and interest earned. Fully taxable; no Section 80C.
RD (Recurring Deposit) Calculator
Maturity amount
₹3,59,664
Total invested
₹3,00,000
Interest earned
₹59,664
Uses the quarterly-compounding formula Indian banks apply to RDs. Your bank may round each instalment differently, and a tenure that is not a whole number of quarters is handled as a fraction here. Interest is fully taxable at your slab rate, and TDS applies above the threshold.
RDs aren't tax-advantaged — interest is fully taxable. For systematic saving with tax benefits, consider SIPs into ELSS or PPF.
You're on 7BusyBoss — 300+ free tools that run instantly in your browser. No signup, nothing uploaded.
Quarterly Compounding: Why Your Calculator Must Be Exact
Banks compound RD interest quarterly, not monthly. Many online calculators use a monthly formula and inflate results by as much as ₹130 per ₹1 lakh over five years. This calculator uses the formula Indian banks apply: M = P × [(1+i)^n − 1] / [1 − (1+i)^(−1/3)], where i is the quarterly rate and n is quarters. That (−1/3) exponent accounts for deposits made late in a quarter having partial compounding. Your passbook uses the same logic.
RD vs SIP: Not Comparable
Both require fixed monthly deposits, so people compare them. They are fundamentally different. An RD is a fixed-rate deposit: the bank guarantees the rate and you get exactly that — no upside, no downside, no market risk. A SIP is an investment in market-linked funds where returns vary. For systematic saving with tax benefits, the fair comparisons are PPF and SIPs, each of which behaves quite differently from a deposit.
Tax: RD Interest Is Fully Taxable
This surprises many. An ordinary RD carries no Section 80C deduction and no special tax treatment. All interest is added to your taxable income at your full slab rate. A 7% RD yields roughly 4.9% after 30% tax. The bank deducts TDS once annual interest crosses the prescribed threshold, and that threshold is revised from time to time, so check the figure for the current year. TDS is not a settlement either: if your slab exceeds the TDS rate you owe the balance at filing. A five-year tax-saving FD does earn a Section 80C deduction on the amount deposited, but its interest is taxed exactly the same way, and the money is locked for the full term.
Limits to Know
Premature withdrawal attracts a lower rate (0.5–1% less) and sometimes a penalty. Missing instalments may suspend the RD or trigger charges. Non-quarter tenures are handled here as fractions, but banks may round differently. Rates vary by bank and should be confirmed with your own.
How to use the RD (Recurring Deposit) Calculator (India)
Takes about a minute. No signup, no download, your data stays in your browser.
- 1Open the tool. Scroll up to the RD (Recurring Deposit) Calculator (India) above — it loads instantly in your browser, no install needed.
- 2Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
- 3Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.
Frequently asked questions
Common questions about the RD (Recurring Deposit) Calculator (India).
Is RD interest fully taxable?
Yes. RD interest is added to your taxable income at your full income-tax slab rate. Unlike PPF, there is no Section 80C deduction. TDS is deducted by the bank above the threshold, but if your slab is higher than the TDS rate you still owe the difference at filing.
Why is my RD maturity less than my calculator says?
Some calculators use a monthly formula instead of the actual quarterly compounding that banks apply. The difference is small per rupee but compounds over years. This calculator uses the exact formula: M = P × [(1+i)^n − 1] / [1 − (1+i)^(−1/3)], where i is the quarterly rate and n is quarters.
Should I choose an RD or a SIP?
They are not comparable. An RD is a fixed-rate deposit with no upside or downside; the bank guarantees the rate. A SIP invests in market-linked funds where returns depend on market performance. For tax-advantaged saving, RD offers no Section 80C benefit. PPF or ELSS SIPs are usually better for systematic saving with tax breaks.
What happens if I miss an RD instalment?
Missing an instalment may trigger a charge or penalty, and your RD may be suspended until you resume or settle arrears. Terms vary by bank. Some allow one or two skips; others are strict. Always check your RD deed or call your bank to confirm.
Community rating
Discussion (0)
No comments yet. Start the discussion.
Keep exploring
Related tools across 7BusyBoss — all free, all instant.