RD Calculator
A recurring deposit (RD) lets you save a fixed amount every month for a set period and earn a fixed rate of interest. It suits people who want to build a lump sum from a regular income without investing in the market.
RD Calculator
Example values are shown to start with. Change them to your own numbers. Everything is calculated in your browser.
This calculator estimates the maturity amount and interest for an RD where interest is compounded quarterly, as many banks do. Each monthly instalment earns interest for the months it remains in the account.
Worked example
With the starting values below, the calculator gives the results in the second table.
| Monthly deposit | ₹5,000 |
|---|---|
| Interest rate | 6.5% |
| Years | 5 |
| Maturity amount | ₹3,54,954.10 |
|---|---|
| Total deposited | ₹3,00,000.00 |
| Interest earned | ₹54,954.10 |
How to use this calculator
- Enter the amount you will deposit each month.
- Enter the annual interest rate.
- Enter the tenure in years.
- Read the maturity amount, total deposited and interest earned.
Formula
- M is the monthly deposit.
- r is the annual interest rate in percent. r ÷ 400 is the quarterly rate.
- k is the number of months an instalment stays deposited: the first instalment earns for the whole tenure and the last for one month.
Assumptions
- Interest is compounded quarterly and the rate is fixed.
- Instalments are paid on time at the start of each month.
Limitations
- Banks may use slightly different day-count or rounding methods, so your receipt can differ by a small amount.
- Penalties for late instalments, tax and premature closure are not included.
Frequently asked questions
How is RD maturity calculated?
Each monthly instalment grows at the quarterly-compounded rate for the months it stays in the account. The calculator adds the grown value of all instalments.
What is the difference between FD and RD?
An FD is one deposit made at the start. An RD is a series of monthly deposits. Compare them using the FD and RD calculators.
What happens if I miss an instalment?
Banks usually charge a small penalty for a late RD instalment. This calculator assumes every instalment is paid on time.
Is RD interest taxable?
Interest on an RD is generally taxable as income under the rules that apply to you.
Related calculators
- SIP CalculatorEstimate the maturity value of a monthly SIP investment.
- PPF CalculatorEstimate the maturity value of a Public Provident Fund account.
- FD CalculatorMaturity amount and interest on a fixed deposit.
Sources and method
Instalments are grown separately and added, using quarterly compounding. See how our calculators work.
Results are estimates for planning only and are not financial, tax or legal advice. Rates, rules and your own circumstances can change the outcome. Read our disclaimer.