What is an FD & RD calculator?
An FD & RD calculator works out how much a bank deposit will be worth when it matures. For a Fixed Deposit you enter a lump sum; for a Recurring Deposit you enter a monthly instalment. With the annual interest rate and the tenure in months, it shows the maturity value, how much you deposited and the interest earned, assuming interest compounds every quarter.
FD and RD, for readers outside India
Both terms are standard in Indian banking, and banks in neighbouring countries use them too.
- Fixed Deposit (FD): you deposit one sum for a fixed term at a fixed rate. Elsewhere this is called a term deposit, time deposit, fixed-rate bond or certificate of deposit (CD).
- Recurring Deposit (RD): you commit to depositing the same amount every month for a fixed term, and the whole balance earns a fixed rate. It's similar to a regular-saver account, though RDs usually fix the rate for the full term.
The calculator doesn't use any particular currency, so you can use it for a term deposit anywhere that compounds quarterly.
The formulas
Fixed Deposit:
A = P × (1 + r/400)^(4t)
P is the deposit, r the annual rate in percent (dividing by 400 gives the quarterly rate as a decimal), and t the tenure in years, which the calculator takes as months ÷ 12. Interest is earned on interest four times a year.
Recurring Deposit:
M = R × [(1 + i)^n − 1] ÷ (1 − (1 + i)^(−1/3))
R is the monthly instalment, i the quarterly rate (annual rate ÷ 400), and n the number of quarters (months ÷ 3). The formula treats each instalment as growing at the quarterly rate spread evenly over the three months of a quarter, from the month it's paid until maturity, so the first instalment earns interest for the whole term and the last one for one month.
At a 0% rate, the FD returns the deposit and the RD returns the instalment × months. Tenure is a whole number of months. For tenures that aren't a multiple of 3, the formulas use fractional quarters, which a bank may calculate differently.
Worked examples
FD: 100,000 for 12 months at an example rate of 7%.
- Quarterly rate: 7 ÷ 400 = 0.0175.
- Quarters: 4 × 1 = 4.
- (1.0175)^4 = 1.071859.
- Maturity: 100,000 × 1.071859 = 107,185.90, so interest is 7,185.90.
Quarterly compounding turns a 7% nominal rate into about 7.19% a year.
RD: 5,000 a month for 12 months at 7%.
- Quarterly rate i = 0.0175; quarters n = 12 ÷ 3 = 4.
- Numerator: (1.0175)^4 − 1 = 0.071859.
- Denominator: 1 − (1.0175)^(−1/3) = 1 − 0.994234 = 0.005766.
- Ratio: 0.071859 ÷ 0.005766 = 12.4621.
- Maturity: 5,000 × 12.4621 = 62,310.66.
You deposit 60,000 in total and earn 2,310.66 in interest. That's much less than 7% of 60,000 because most of the money is in the account for only part of the year.
FD vs RD over different tenures
Calculated with this tool at the same 7% example rate:
| Tenure | FD of 100,000: maturity | FD interest | RD of 5,000/month: deposited | RD maturity | RD interest |
|---|---|---|---|---|---|
| 12 months | 107,185.90 | 7,185.90 | 60,000.00 | 62,310.66 | 2,310.66 |
| 36 months | 123,143.93 | 23,143.93 | 180,000.00 | 200,686.49 | 20,686.49 |
| 60 months | 141,477.82 | 41,477.82 | 300,000.00 | 359,663.95 | 59,663.95 |
How to use the calculator
- Choose Fixed Deposit or Recurring Deposit.
- Enter the amount: the lump sum for an FD, or the monthly instalment for an RD.
- Enter the annual interest rate your bank offers.
- Enter the tenure in months (3 years = 36).
- Click Calculate to see the maturity value and interest earned.
What the calculator doesn't include
- Tax. Results are gross. Interest is usually taxable income.
- Interest payouts. If you choose monthly or quarterly interest payouts instead of reinvesting, nothing compounds and you'll receive less at maturity.
- Premature withdrawal penalties and any reduced rate for breaking a deposit early.
- Rate changes. FDs and RDs usually lock the rate at opening, but a renewal will be at whatever rate applies then.
- Senior citizen or special-tenure rates. Enter the exact rate you've been offered.
In India, deposits at insured banks are covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a subsidiary of the RBI, up to 5 lakh rupees per depositor per bank, including principal and interest. The DICGC website explains what's covered and lists insured banks.
Related calculators
- Compound interest calculator: choose annual, monthly or daily compounding for a lump sum.
- SIP calculator: a fixed monthly investment in a mutual fund at an assumed return.
- Retirement calculator: long-term savings with monthly contributions.
- Budget calculator: find how much you can set aside each month for an RD.
Results are estimates for illustration and aren't financial advice; your bank's actual figures may differ.
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