FD RD Calculator
Calculate your Fixed Deposit (FD) and Recurring Deposit (RD) maturity amounts with banking-grade precision. Compare one-time investments versus monthly savings instantly.
How to Use the FD & RD Calculator?
Whether you want to invest a lump-sum amount (FD) or save small amounts every month (RD), this dual-mode banking calculator maps your wealth creation accurately:
- Fixed Deposit (FD) Mode: Select this if you have a one-time lump-sum amount to invest. The interest will compound over the tenure based on the bank's frequency (usually quarterly).
- Recurring Deposit (RD) Mode: Select this if you want to deposit a fixed amount every month. The tool calculates compounding on every single monthly deposit till maturity.
- Compounding Frequency: In India, most public and private sector banks compound deposit interest Quarterly (every 3 months).
The Deposit Calculation Formulas
Our tool uses advanced mathematical loops to provide banking-grade precision. The core formulas driving these computations are:
1. FD (Fixed Deposit) Formula:
A = P × (1 + r/n)nt
2. RD (Recurring Deposit) Formula:
M = R × [ (1+i)n - 1 ] / [ 1 - (1+i)-1/3 ]
Where: A/M is Maturity Amount, P/R is the Deposit Amount, r is the Annual Rate, n is the frequency per year, and t is time in years.
Frequently Asked Questions (FAQs)
Which is better: FD or RD?
FD is better if you already have a lump-sum amount saved up, as the entire amount starts earning interest from day one. RD is perfect for salaried individuals who want to build a corpus by saving a fixed portion of their income every month.
How is RD interest calculated differently from FD?
In an FD, your total principal earns interest for the full tenure. In an RD, you deposit money in monthly installments. Thus, your first month's deposit earns interest for the full tenure, the second month's deposit earns interest for one month less, and so on.