Benefits of Using This RD Calculator
✅ Quick and accurate calculation of maturity amount.
✅ Visual understanding through charts and graphs.
✅ Breaks down your investment into principal vs. interest.
✅ Lets you factor in senior citizen bonus rates.
✅ Adjusts for your tax slab to show post-tax returns.
✅ Helps compare banks to get the best rates.
What is a Recurring Deposit (RD)?
A recurring deposit (RD) is one of the well-established savings schemes in India, offered by banks, post offices, and financial institutions. It enables investors to make regular monthly contributions for a predetermined period and earn a guaranteed interest.
Unlike lump-sum FDs, RDs cater to disciplined monthly saving. The sum of all the monthly deposits plus accrued interest is paid to the investor at the end of the 20-year period.
How Does a Recurring Deposit Work?
When you open an RD account:
1️⃣ You select your monthly deposit amount (for example, ₹2,000/month).
2️⃣ You pick the term (i.e., how long you want it—for instance, 5 years).
3️⃣ The bank provides a fixed interest rate (for example, 7% per year).
4️⃣ You pay ₹2,000 per month.
5️⃣ Interest is compounded quarterly.
6️⃣ At maturity, you receive the total amount of your deposits + interest accrued.
Unlike lump-sum FDs, you accumulate your savings gradually, making it best suited for salaried people.
Interest Calculation in RD
Interest is generally compounded quarterly using the formula:
RD Formula with MathMLA = P × ( 1 + r n ) n t − 1 1 − ( 1 + r n ) − 1 3
But most people use an RD calculator to avoid manual computation.
Example:
- Monthly deposit: ₹5,000
- Tenure: 5 years
- Rate: 7.1% p.a. (compounded quarterly)
- Maturity amount: ~₹3.6 lakh
- Total invested: ₹3 lakh
- Interest earned: ~₹60,000
Taxation on RD
Interest earned on RD is completely taxable under Heads ‘Income from Other Sources’.
Banks deduct TDS (Tax Deducted at Source) if interest in a financial year crosses ₹40,000 (₹50,000 for senior citizens).
Investors have to declare interest income in their tax returns and pay tax as per their slab.
Example:
If you are in the 20% slab and earned ₹10,000 as interest, you will have to pay ₹2,000 as tax.
Popular Banks & Post Office RD Rates
| Institution | Regular Rate (p.a.) | Senior Citizen Rate (p.a.) |
|---|---|---|
| SBI | ~6.5–7.0% | ~7.0–7.5% |
| HDFC Bank | ~6.75–7.10% | ~7.25–7.60% |
| ICICI Bank | ~6.7–7.10% | ~7.2–7.60% |
| Post Office (5 years) | ~6.7% | Same rate for all |
FAQs on RD Calculator
1. What is an RD Calculator?
RD Calculator is a free online tool used to calculate the maturity amount and interest earned on a recurring deposit. Simply enter your monthly deposit, tenure, interest rate, and compounding frequency, and know your payout on maturity.
2. How does an RD Calculator work?
RD Calculator The RD calculator takes into account the recurring deposit scheme offered by all the banks, based on which the investors are expected to deposit a fixed amount of money every month and earn interest at the rate applicable to fixed deposits (FD). It considers the fixed monthly payments, the loan term, the interest rate, and the compounding period to provide you with an approximation.
3. What details do I need to use an RD calculator?
You’ll usually need:
- Monthly deposit amount
- Interest rate (p.a)
- Compounding frequency (monthly, quarterly, etc.)
- Senior citizen status (for extra interest, if applicable)
- Tax slab (to see post-tax returns)
4. Is the interest earned on RD taxable?
Yes. Interest earned on an RD is fully taxable under “Income from Other Sources” in India. Banks also deduct TDS (Tax Deducted at Source) if annual interest exceeds ₹40,000 (₹50,000 for senior citizens).
5. Does the calculator show post-tax returns?
Many advanced RD calculators (like the one shown in your image) allow you to select your tax slab so you can see interest after tax as well as the maturity amount.
6. Can senior citizens get higher RD rates?
Yes. Most banks offer an extra 0.25% to 0.75% interest for senior citizens. Good RD calculators include an option to check this benefit.
7. Is the RD Calculator result exact?
The calculator provides an accurate estimate based on the entered rate and compounding formula. Actual returns may vary slightly based on the bank’s compounding method and policies.
8. Can I use the RD Calculator for Post Office RD?
Yes! Just enter the current Post Office RD interest rate and tenure. The formula works the same way.
9. Is using the RD Calculator free?
Yes. MasterCalculator. In’s online RD calculators are completely free to use and accessible on mobile or desktop.
10. Why should I use an RD Calculator?
It helps you:
✅ Plan your monthly savings
✅ Know the maturity amount in advance
✅ Compare different tenures and rates
✅ Decide on the best RD option for your goals
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