RD Calculator

What is an RD Calculator?

An RD calculator calculates how much your monthly investment grows over time using compound interest.

Instead of manually calculating complex formulas, this tool instantly shows:

• Total invested amount
• Interest earned
• Maturity value
• TDS (Tax Deducted at Source)
• Net returns after tax

How the RD Calculator Works

The calculator uses the standard compound interest formula for recurring deposits:

Where:
M = Maturity value
P = Monthly deposit amount
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of months

Inputs Required in RD Calculator

1. Monthly Investment

The fixed amount you deposit every month.

👉 Example: ₹5,000 per month

2. Interest Rate (p.a.)

The annual interest rate offered by banks or post office.

👉 Example: 6.5% per annum

3. Investment Tenure

Duration of your RD in years.

👉 Example: 3 years (36 months)

4. Tax Slab

Your income tax bracket:

• 0%
• 5%
• 20%
• 30%

5. Senior Citizen Option

• Affects TDS threshold
• ₹50,000 (senior)
• ₹40,000 (regular)

6. PAN Status

• PAN submitted → 10% TDS
• No PAN → 20% TDS

7. Form 15G / 15H

• If submitted → No TDS deduction
• But tax still applies

RD Calculator Output Explained

✔️ Invested Amount

Total money deposited over time
👉 Monthly × Number of months

✔️ Interest Earned

Total returns generated from compounding

✔️ TDS (Tax Deducted at Source)

• Deducted by bank if yearly interest exceeds:
• ₹40,000 (normal)
• ₹50,000 (senior citizen)

✔️ Total Tax Liability

Based on your income tax slab

✔️ Extra Tax Payable

If:
👉 Actual tax > TDS deducted

✔️ Net Returns

Final profit after tax deduction

✔️ Total Maturity Value

Final amount you receive:
👉 Invested Amount + Net Interest

Year-wise RD Interest Table

Your calculator also shows a year-wise breakdown, which includes:

• Yearly investment
• Interest earned each year
• Running balance
• TDS deducted per year

👉 This helps users understand how compounding works over time

TDS Calculation in RD (Important Concept)

The RD calculator follows real-world tax rules:

✔️ TDS is applied:

• Year-wise (not total maturity)
• Only if interest exceeds threshold

TDS Formula:

• With PAN → 10%
• Without PAN → 20%

Form 15G / 15H:

• Stops TDS deduction
• But does NOT eliminate tax liability

RD Taxation Rules (Must Know)

• Interest earned is fully taxable
• Added to your income under “Income from Other Sources”
• TDS is only an advance tax deduction

Benefits of Using an RD Calculator

• ✔️ Instant and accurate results
• ✔️ Helps in financial planning
• ✔️ Shows tax impact clearly
• ✔️ Avoids manual calculation errors
• ✔️ Useful for comparing RD vs FD vs SIP

Tips

• Choose longer tenure for better compounding
• Use Form 15G/15H if eligible
• Compare RD with FD and SIP before investing
• Always consider post-tax returns, not just interest