RD Calculator: Turn Small Monthly Deposits into a Corpus

A recurring deposit builds wealth through discipline: you deposit a fixed sum every month and the bank compounds it monthly. Our RD calculator applies FV = M x ((1+i)^n - 1)/i x (1+i) with i = r/12/100 and n in months. Enter monthly deposit, annual rate and years to see maturity value, total invested and interest earned.

Why RDs work for beginners

• Habit formation: automatic monthly debits remove the temptation to skip saving.
• Flexible ticket size: start with Rs 500 or Rs 1,000 and step up as income grows.
• Guaranteed return: unlike markets, the maturity value is fixed on day one.

Tips to maximise RD returns

Choose the longest tenure you can sustain, because every extra year adds 12 more compounding cycles. Never miss an instalment, since penalties and lower effective balances drag down maturity. Compare post office, public and private bank RD rates here before opening an account, and pair the RD with a PPF or SIP for long-term goals beyond 5 years.

Example

Rs 5,000 per month at 7% for 5 years means 60 deposits totalling Rs 3,00,000, maturing near Rs 3,57,000. That extra Rs 57,000 is pure compounding reward for consistency.