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How-to guide

How to Calculate RD: Formula, Steps & Examples

Learn how to calculate RD — the formula explained step by step, with worked examples and a free calculator to check your answer.

By Aarav Mehta, CFA, MBA Finance · Updated Jun 2026 · 2 min read

Calculating your maturity value is straightforward once you know the RD formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the RD Calculator.

What is RD?

The RD calculation tells you your maturity value from a few simple inputs. The figure you are solving for here is the maturity value, expressed in INR.

The RD formula

This calculation combines several inputs through a multi-step method rather than a single one-line formula. Enter the values below and the calculator resolves each step in order. The inputs it needs are:

  • Monthly deposit — a money amount. Example: ₹5,000.
  • Interest rate (p.a.) — a percentage, such as an annual rate. Example: 6.5%.
  • Tenure — a value you set on the slider. Example: 60 months.

How to calculate it step by step

  • Write down the monthly deposit (for example, ₹5,000).
  • Write down the interest rate (p.a.) (for example, 6.5%).
  • Note the tenure (for example, 60 months).
  • Apply the formula above to get your maturity value.
  • Double-check the result with the RD Calculator.

Worked examples

Example 1

Input / OutputValue
Monthly deposit₹5,000
Interest rate (p.a.)6.5%
Tenure60 months
Maturity value₹3,55,284
Total deposited₹3,00,000
Interest earned₹55,284

With monthly deposit of ₹5,000, interest rate (p.a.) of 6.5% and tenure of 60 months, the maturity value works out to ₹3,55,284.

Example 2

With monthly deposit of ₹10,000, interest rate (p.a.) of 6.5% and tenure of 60 months, the maturity value works out to ₹7,10,568.

ResultValue
Maturity value₹7,10,568
Total deposited₹6,00,000
Interest earned₹1,10,568

Example 3

With monthly deposit of ₹2,500, interest rate (p.a.) of 6.5% and tenure of 60 months, the maturity value works out to ₹1,77,642.

ResultValue
Maturity value₹1,77,642
Total deposited₹1,50,000
Interest earned₹27,642

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.
  • Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).

Prefer not to do the maths by hand? — the RD Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring finance calculators with these tools: SIP Calculator, EMI Calculator, CAGR Calculator, FD Calculator, Effective Annual Rate (EAR) Calculator.

Calculators in this guide

Frequently asked questions

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the RD Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The maturity value is expressed in INR. Make sure your inputs use matching units so the result is correct.

Aarav Mehta · CFA, MBA Finance

Aarav reviews every finance formula on CalcHub for accuracy.