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Recurring Deposit (RD) Calculator
Maturity value of a monthly recurring deposit with quarterly compounding, as banks compute it.
SavingsInputs
Results
Formula
- i = r / 400 (quarterly rate as banks apply it)
- Each instalment compounds for the remaining quarters:
- M = Σ A × (1 + i)^((n − k + 1)/3)
- Interest = M − (A × n)
Banks credit RD interest quarterly, but instalments arrive monthly, so each deposit compounds for a fractional number of quarters equal to its remaining months divided by three. Summing across all instalments gives the maturity value — the same result the RBI-prescribed RD formula produces.
Step-by-step Calculation
- 1.Quarterly rate
6.8 / 4000.017000 - 2.Instalments
n60 - 3.Compounded sum
Σ A × (1+i)^((n−k+1)/3)₹715,542 - 4.Total deposited
10,000 × 60₹600,000 - 5.Interest
M − deposits₹115,542
Assumptions
- • Instalments are paid on time; missed instalments attract a penalty and reduce maturity.
- • Quarterly compounding, the standard for scheduled commercial banks.
- • TDS is not deducted from the displayed maturity value.
Money Tips
- ◆An RD suits goal-based saving under 5 years where capital safety matters more than return.
- ◆For 5+ year goals, compare against a debt fund SIP on a post-tax basis.
Warnings
- ▲Interest is fully taxable at slab; RDs rarely beat inflation post-tax for 30% slab investors.
References & Standards
RBI RD interest computationSection 194A TDS on deposits
Results are planning estimates generated in your browser. Nothing you enter is uploaded or stored. Verify material decisions with your lender, adviser or chartered accountant.