RD Calculator

Each instalment earns interest only for the time it is actually in the account — this computes them individually rather than treating the whole deposit as if it arrived on day one.

What you enter

• Monthly deposit
• Interest rate
• Tenure
• Compounding per year

What it tells you

• Maturity value
• Interest earned
• Total deposited

How this is worked out

Instalment number i sits for (tenure − i) months, and each one compounds for exactly that long. Summing them is why an RD earns noticeably less than an FD of the same total.

What it cannot know

• RD interest is taxable at your slab rate, and TDS may apply.
• Missing an instalment usually attracts a penalty. This assumes every deposit is made on time.

Questions

Why is my RD return lower than an FD at the same rate?

Because the money arrives gradually. Your last instalment earns one month of interest; in an FD the whole sum earns for the full term.

Related calculators

• fd
• sip

Sansara is not a SEBI-registered investment adviser or research analyst. This page performs arithmetic on numbers you enter and does not recommend any security, scheme or course of action.