Total Invested
₹300,000.00
Maturity Value
₹364,457.90
Interest Earned
₹64,457.90
17.69% of maturity is interest
IRR (Annualized, cashflow-based)
7.71%
Nominal effective rate: 7.71%
Post-Tax Maturity
₹364,457.90
Real Value (Today's ₹)
₹364,457.90
After inflation + tax: ₹364,457.90
Growth chart (Invested vs Balance) — hover for tooltip
Showing all months
| Month | Deposit | Invested | Balance | Interest |
|---|
Recurring Deposit • Post-tax • Inflation-adjusted • Bank-style compounding
How to Use the RD Calculator (Recurring Deposit) — Step-by-Step Guide
This RD calculator helps you estimate your maturity value, total interest earned, and what you actually take home after tax—plus a real (inflation-adjusted) view of your returns. It’s built to match the way most Indian banks credit interest (quarterly / periodic compounding) while keeping the experience fast, visual, and transparent.
1) Inputs explained (what each field means)
Monthly Deposit (₹)
This is the amount you plan to deposit every month into the RD. For planning, treat this as your fixed monthly saving commitment.
Interest Rate (% p.a.)
Enter the annual interest rate offered by your bank/NBFC. Even a 0.5% change can materially affect the maturity value for long tenures.
Tenure (Years / Months)
RD returns depend strongly on how long your deposits compound. Short tenures behave “almost linear”; longer tenures magnify compounding.
Deposit Timing (Beginning / End of month)
If you deposit at the beginning of each month, money gets one extra month of compounding compared to end-of-month deposits. This small timing shift becomes meaningful for larger deposits and longer tenures.
Compounding / Crediting (Bank-style periodic)
Banks typically credit RD interest periodically (often quarterly). This calculator is designed to mirror that style, while still showing your results clearly.
Tax on Interest (%)
RD interest is generally taxable (often treated as “Income from Other Sources”). Use your approximate slab rate as a planning assumption. The calculator uses this to estimate post-tax maturity so you can compare “headline returns” vs “money in hand”. (This is an estimate; actual taxation can vary based on your circumstances and rules.)
Inflation (%)
Inflation tells you what your maturity amount is worth in “today’s rupees”. This is essential for realistic goal planning (education, travel, emergency fund).
2) How to calculate using the tool (in 60 seconds)
- Enter your monthly deposit (₹). Start with what you can comfortably automate via auto-debit.
- Set the interest rate you’re being offered. If you’re comparing multiple banks, run each scenario.
- Choose your tenure in years/months. For goal-based planning, match it to your target date.
- Pick deposit timing (beginning vs end). Use what matches your actual cashflow cycle.
- Fill tax and inflation assumptions to see a realistic “after-tax and real value” outcome.
- Review the chart and summary cards. If your goal isn’t met, adjust either deposit amount, tenure, or rate.
Expert note: Use the calculator in “comparison mode” mentally: keep everything constant and change one variable at a time. That’s the fastest way to understand what is driving your maturity value.
3) How to interpret the results (what you should focus on)
Total Deposits
This is simply how much cash you put in over time. It helps you see your discipline vs returns.
Interest Earned
This is the “reward for time”. If interest looks low, it usually means tenure is short, deposits start late (end of month), or the rate is modest.
Maturity Value (Gross)
This is the amount before considering tax. It’s useful for bank-to-bank comparison, but not the final “take home”.
Post-Tax Maturity (Practical)
This is what matters for real-life decision-making: the approximate amount you may keep after applying your tax assumption to the interest component. If you’re comparing RD vs debt fund vs FDs, always compare post-tax outcomes.
Real Value (After Inflation)
This tells you the purchasing power of your maturity amount in today’s rupees. If “real value” disappoints, it’s a signal to revisit the plan: increase monthly deposit, extend tenure, or mix RD with growth-oriented instruments (depending on your risk profile).
4) Practical examples (how people actually use an RD calculator)
Example A: Goal-based saving
You have a target amount in mind (say, a family event or a planned purchase). Start by setting tenure to your target date and test different monthly deposits until the post-tax maturity aligns with your goal.
Example B: Rate comparison across banks
Keep deposit and tenure fixed, change only the interest rate, and compare gross vs post-tax. This prevents “rate bias” and focuses on outcomes.
Example C: Cashflow planning
Switch deposit timing (begin vs end) to see the difference. If you can deposit early in the month, you may capture slightly higher compounding.
5) Expert tips to get better decisions from the calculator
- Use post-tax maturity for decisions. Gross maturity looks nicer but can mislead.
- Don’t ignore inflation. Long-term goals should always be checked in real terms.
- If results are short of your goal, first adjust monthly deposit—it’s the biggest lever you control.
- Compare RD with alternatives only on a like-for-like basis: same tenure, same risk, post-tax.
- Keep expectations realistic: RD is typically for capital safety + disciplined savings, not maximum growth.
If you also track stocks, intrinsic value, or long-term SIP goals, you can use this RD calculator as your “safe allocation” baseline. On Getaka, keep a simple rule: stability first, growth second—and measure both with the right tool.
FAQ (common questions)
Does RD interest get taxed?
In many cases, yes—interest may be taxable as per applicable rules. Use the “Tax on Interest (%)” field as a planning estimate so you compare realistic outcomes instead of headline numbers.
Why does “beginning of month” give higher returns?
Depositing earlier gives your money more time to earn interest. It’s like getting one extra month of compounding for each deposit.
What is “real value” and why should I care?
Real value adjusts for inflation. If inflation is high, ₹10 lakh in the future may buy what ₹6–7 lakh buys today. For goal planning, real value is critical.
How should I choose inflation and tax assumptions?
Use conservative assumptions. Inflation can be set around your personal experience (cost of living increases). For tax, use your approximate slab rate. If unsure, keep a slightly higher buffer so your plan stays robust.
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