RD Calculator

RD Calculator — how it works

A Recurring Deposit (RD) is a fixed monthly deposit with a bank at a guaranteed interest rate. Unlike a SIP, the return is fixed upfront — this calculator shows exactly what your RD will be worth at maturity.

Quarterly compounding

Most Indian banks compound RD interest quarterly, not monthly or annually. This calculator uses the same quarterly-compounding method banks use, so the number should closely match what your passbook shows.

RD vs SIP

An RD gives a guaranteed, fixed return with capital protection — ideal for short-term, low-risk goals. A SIP into equity funds carries market risk but has higher long-term growth potential. Many people use both for different goals.

Tax treatment

Interest earned on an RD is fully taxable as "income from other sources" at your slab rate, and banks deduct TDS once interest crosses the annual threshold.

The formula

Why use Pretax's rd calculator

• Current rates. Slabs and limits are reviewed against the current Finance Act.
• Nothing leaves your browser. Every calculation runs on your device — we never see or store what you type.
• Built by working CAs. The same team that files returns for our clients maintains these formulas.
• Free, no signup. No account and no email required to see a result.

Frequently asked questions

Is RD interest better than a savings account?

Almost always yes — RDs typically offer meaningfully higher interest than a regular savings account, in exchange for committing to fixed monthly deposits.

Can I withdraw an RD early?

Most banks allow premature closure, usually with a penalty of 0.5-1% on the interest rate — check your bank's specific terms.