RD Calculator
A recurring deposit (RD) lets you save a fixed amount every month with a bank and earn a guaranteed rate of interest, making it a disciplined way to build a corpus for a short-term goal. Use this RD calculator to find your maturity value and interest earned — enter your monthly deposit, interest rate and tenure to see your returns instantly, with interest compounded quarterly the way banks calculate it.
- Invested
- ₹3,00,000
- Interest Earned
- ₹59,664
Maturity Value
₹3,59,664
- Invested83%
- Interest Earned17%
Formula
M = R × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where i = (1 + r/4)^(1/3) − 1
- R
- Fixed monthly deposit amount.
- i
- Effective monthly rate derived from the quarterly rate r/4.
- n
- Total number of monthly deposits (years × 12).
RDs take a monthly deposit but banks compound quarterly, so the quarterly rate is converted to an equivalent monthly rate. The figure shown is the gross maturity value before any tax (TDS) on the interest.
Worked example
Suppose you deposit ₹5,000 every month into a recurring deposit at 7% per annum for 5 years (60 deposits), with quarterly compounding.
- Monthly Deposit (R)
- ₹5,000
- Interest Rate (p.a.)
- 7%
- Tenure
- 5 years (60 months)
You deposit ₹3,00,000 in total. The RD matures to about ₹3,59,664 — meaning roughly ₹59,664 of interest earned on top of your deposits.
Year-by-year growth
Based on the default RD Calculator values above. The final year matches the maturity value shown by the calculator — change the inputs to project your own plan.
- Total invested
- ₹3,00,000
- Interest earned
- ₹59,664
- Maturity value
- ₹3,59,664
- Value / invested
- 1.20×
Over 5 years, your ₹3,00,000 grows to about ₹3,59,664 — roughly 1.20× what you put in, thanks to compounding.
| Year | Invested | Interest earned | Maturity value |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| 2 | ₹1,20,000 | ₹9,099 | ₹1.29 Lakh |
| 3 | ₹1,80,000 | ₹20,686 | ₹2.01 Lakh |
| 4 | ₹2,40,000 | ₹37,418 | ₹2.77 Lakh |
| 5 | ₹3,00,000 | ₹59,664 | ₹3.60 Lakh |
How the RD calculator works
Adjust the monthly deposit, interest rate and tenure sliders to see your maturity value and interest earned update in real time, with a breakdown of how much you deposited versus how much you earned. Each deposit earns interest for the months that remain, so earlier deposits contribute more interest — the result reflects this automatically.
Why choose a recurring deposit
RDs are ideal for turning a regular saving habit into a guaranteed corpus — for a festival, a gadget, a trip, or an emergency fund. Like FDs, the rate is fixed at booking, so returns are predictable and not exposed to market swings. For long-term wealth building, a SIP in mutual funds may offer higher (though market-linked) returns.
Tips for RD savers
- Pick a sustainable monthly amount you can maintain for the whole tenure.
- Automate the deposit so you never miss an instalment.
- Compare with a SIP if your goal is long term and you can accept market risk.
- Account for tax on the interest when planning your goal amount.
Frequently asked questions
How is RD maturity calculated?
RD maturity treats your monthly deposits as a series and applies compound interest. Because banks compound quarterly, the quarterly rate is converted to an effective monthly rate i, then M = R × [((1+i)ⁿ − 1) ÷ i] × (1+i). This calculator does the conversion and the maths for you.
How is an RD different from an FD?
A fixed deposit takes a single lumpsum upfront, while a recurring deposit takes a fixed amount every month. RDs suit people saving from regular income who don't have a lumpsum to invest, whereas FDs suit money you already have on hand.
Is RD interest taxable?
Yes. Interest earned on a recurring deposit is taxable as income, and banks may deduct TDS if the interest exceeds the prescribed threshold. The maturity value shown here is before tax — your net return depends on your tax slab.
Can I miss an RD instalment?
Missing a deposit usually attracts a small penalty and can affect your maturity amount. Some banks allow a grace period. It's best to keep the monthly deposit at a level you can sustain for the full tenure.
What tenure can I choose for an RD?
RD tenures typically range from 6 months to 10 years. A longer tenure and a higher monthly deposit both increase the maturity value. Use the sliders to see how changing the tenure or deposit affects your returns.