FD & RD Calculator
Calculate fixed deposit and recurring deposit maturity value with compound interest.
Compounding Frequency
What is it?
This calculator computes the maturity value of a Fixed Deposit (a lump-sum deposit) or a Recurring Deposit (fixed monthly deposits), both common low-risk bank savings instruments.
Formula
FD Maturity = P × (1 + r/n)^(n×t)
RD Maturity = R × [((1+i)ⁿ − 1) ÷ i] × (1+i), where i = r/12
Formula Explanation
An FD grows a single lump-sum deposit with compound interest at your chosen compounding frequency. An RD instead treats each monthly deposit as a small investment that compounds for the remaining months until maturity — the formula sums the future value of every monthly installment.
Example Calculation
A $100,000 FD at 7% for 5 years with quarterly compounding matures to about $141,478. A $5,000/month RD at 6.5% for 24 months matures to roughly $128,000, including about $8,000 in interest.
How to Use
- Choose the Fixed Deposit or Recurring Deposit tab.
- For FD, enter the principal, interest rate, tenure, and compounding frequency.
- For RD, enter the monthly deposit amount, interest rate, and tenure in months.
- Review your maturity value and total interest earned.
Benefits
- Covers both common deposit types in one tool.
- Lets you adjust FD compounding frequency to match your bank's actual terms.
- Shows total invested vs. interest earned separately for RDs.
Use Cases
- Comparing FD offers from different banks with different compounding frequencies.
- Planning a recurring monthly saving habit toward a specific goal amount.
- Estimating post-tax returns before committing funds to a fixed deposit.
What Your Result Means
The maturity value is the total amount you'll receive at the end of the tenure, including your principal (or total deposits) plus all compounded interest. Compare this against the effective annual return to judge whether a deposit beats inflation or other investment options.
Tips
- Most Indian banks compound FD interest quarterly by default — check your specific bank's terms.
- RD interest is usually compounded quarterly by the bank, though this calculator uses monthly compounding as a common simplification — actual bank maturity values may differ slightly.
- Remember that FD and RD interest is taxable as per your income tax slab, unlike some tax-saving instruments.
Common Mistakes
- Assuming FD interest is tax-free — it's fully taxable as per your income slab, with TDS often deducted at source.
- Comparing FDs with different compounding frequencies without adjusting for the difference.
- Forgetting that early withdrawal from an FD or missed RD installments usually incurs a penalty.
FAQs
What's the difference between FD and RD?
An FD is a one-time lump-sum deposit that earns compound interest until maturity, while an RD involves fixed monthly deposits that each earn interest for the remaining tenure.
Is FD or RD interest taxable?
Yes, interest from both FDs and RDs is fully taxable as per your income tax slab, and banks typically deduct TDS if interest exceeds the threshold set by tax rules.
Which compounding frequency is best for an FD?
More frequent compounding (e.g. monthly or quarterly) yields a slightly higher maturity value than annual compounding for the same nominal rate — check what your bank offers.
Actual bank maturity values may vary slightly based on exact compounding conventions used by your bank.
Last updated: July 26, 2026