RD Calculator

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Maturity value of a monthly recurring deposit with quarterly compounding, as banks compute it.

Inputs

Currency

Monthly deposit

Interest rate (% p.a.)

Tenure (months)

Income tax slab (%)

How to use this calculator: RD Calculator

Maturity value of a monthly recurring deposit with quarterly compounding, as banks compute it. The example below is calculated by this page's real engine from the displayed inputs.

1Enter the fixed amount you plan to deposit every month into the recurring deposit.
2Use the annual interest rate offered by your bank for the selected RD tenure.
3Enter the number of months or years you will continue depositing money.
4Compare total deposits with estimated maturity value to understand the interest earned.

Input guide and example values

Use values from the same measurement basis and time period. Conditional fields appear only when the related option is selected.

Input	Example value	Why it matters
Currency	₹ Indian Rupee (INR)	Select the option that matches the real installation or scenario.
Monthly deposit	10000	Measured or known monthly deposit used by the calculation engine.
Interest rate	6.8 % p.a.	Measured or known interest rate used by the calculation engine.
Tenure	60 months	Measured or known tenure used by the calculation engine.
Income tax slab	30 %	Measured or known income tax slab used by the calculation engine.

Formula, derivation and worked example

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.

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)

Substitution steps

1. Quarterly rate
6.8 / 400
= 0.017000
2. Instalments
n
= 60
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

Computed example results

Maturity amount: ₹715,542
Total deposited: ₹600,000
Interest earned: ₹115,542
Post-tax interest: ₹80,880; At 30% slab
Return on deposits: 19.26%
Instalments: 60 months

Understanding the result

Read the main result together with supporting checks, assumptions, limits and intermediate values.

For a manual check, repeat the first equation, confirm the units and change one input at a time.

Common mistakes when using RD Calculator

Do not mix units for Interest rate (% p.a.), Tenure (months), Income tax slab (%). A unit mismatch changes the input magnitude even when the typed number looks reasonable.
Do not leave Currency on the default choice unless that choice matches the real scenario; the selected option can change the calculation path or factor.
Do not replace the displayed i = r / 400 (quarterly rate as banks apply it) relationship with a different convention without also changing the underlying assumptions; compare like-for-like methods when checking the result.
Do not treat Maturity amount = ₹715,542 from the worked example as a universal answer. It belongs to the displayed example inputs and must be recalculated for the actual case.

Next logical calculator

Continue with FD Calculator

Useful next check because both tools use Currency and Interest rate, while FD Calculator answers a different part of the same workflow.

Open FD Calculator

Standards, source trail and limitations

References show the method used. Check the current local edition, amendments and project specification before a regulated decision.

What is a recurring deposit?

A recurring deposit lets you save a fixed amount every month for a selected tenure at a stated interest rate.

It may suit people who prefer predictable monthly savings rather than investing one large amount at once.

RD versus FD

An FD starts with one lump-sum deposit, while an RD receives regular deposits. An RD can be useful when income arrives monthly and savings need structure.

Compare interest rate, tenure, premature-withdrawal rules and tax treatment before selecting either option.

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)

Formulas explained

Maturity value = monthly deposit growth accumulated for each instalment

Every RD instalment stays invested for a different period. The first deposit earns interest for the longest time and the final deposit earns it for the shortest time.

Monthly deposit: Amount invested every month
Rate: Annual RD interest rate
Tenure: Total RD investment period

Banks may use their own quarterly compounding and maturity-date conventions, so the final amount can vary slightly.

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.

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.

Standards & references

RBI RD interest computation
Section 194A TDS on deposits

Frequently asked questions

Can I change the RD monthly deposit amount?

Most RDs use a fixed monthly instalment. Check your bank's product rules before opening the account.

Is RD interest taxable?

RD interest may be taxable depending on applicable rules and your financial situation. Confirm current tax treatment with your bank or a qualified adviser.

Can I close an RD before maturity?

Many banks allow premature closure, but lower interest or a penalty may apply. Check the bank terms before investing.

What inputs does the RD Calculator use?

It uses Currency, Monthly deposit, Interest rate, Tenure, and Income tax slab. Follow the unit printed for each field and choose any selectable option to match the real scenario.

What does the RD Calculator calculate?

It calculates Maturity amount, Total deposited, Interest earned, Post-tax interest, Return on deposits, and Instalments. With the displayed default inputs, Maturity amount is ₹715,542.

Which formula does the RD Calculator use?

The primary relationship is i = r / 400 (quarterly rate as banks apply it). The page also shows substituted values and calculation steps so the result can be checked independently.

How can I verify a RD Calculator result?

First verify the units for Currency, Monthly deposit, and Interest rate. Then compare the substituted formula steps with Maturity amount and its displayed precision.

What are the limitations of the RD Calculator?

RD Calculator: This is an estimate, not a lender offer. Verify fees, taxes, rate changes, eligibility and repayment terms in the official product documents.

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