RD Calculator
Estimate the maturity value of a recurring deposit, with each month's deposit earning for its own term.
How it works
Enter the monthly deposit, the rate and the duration. Deposit k is made at the start of month k and grows for the months it remains, so the first deposit earns for the full term and the last for one month. Maturity is the sum of every deposit's grown value.
Deposit k grows to R × (1 + r ÷ m)^(m × (N − k + 1) ÷ 12)
Maturity = sum of all N deposits (m = 4 for quarterly, 12 for monthly)Example
₹5,000 a month for 5 years (N = 60) at 7%, compounded quarterly: you deposit ₹3,00,000 and the maturity amount is ₹3,59,664, so the interest earned is ₹59,664.
Common mistakes
- Treating an RD like an FD of the total. A recurring deposit earns less than the same total deposited upfront, because later deposits stay invested for less time.
- Assuming every bank compounds quarterly. Check the convention for your deposit.
- Missing instalments. A late or missed deposit usually changes the maturity amount and may carry a penalty.
Results are estimates and are for informational purposes only.
About this calculator
Enter the monthly deposit, the annual interest rate and the duration, in years or months. The calculator returns the total deposited, the interest earned and the maturity amount. Each deposit earns interest only for the time it stays in the account, not from day one.
Interest is compounded quarterly by default, which many Indian banks use; you can switch to monthly. Banks decide their own convention, so your bank's figure may differ slightly. Tax deducted at source and penalties for missed deposits are not included.
Frequently asked questions
How is RD maturity calculated?
Each monthly deposit is grown for the number of months it stays deposited, using (1 + r ÷ m)^(m × months ÷ 12), and the results are added up. For ₹5,000 a month for 5 years at 7%, compounded quarterly, the maturity is about ₹3,59,664.
Why is an RD's interest lower than an FD of the same total?
In an FD the whole amount earns interest from the first day. In an RD only the first deposit earns for the full term; the last one earns for a single month.
Which compounding does the calculator use?
Quarterly by default, a common convention among Indian banks, with monthly as an option. Banks set their own rules, so your bank's maturity figure may differ slightly.
What happens at 0% interest?
The maturity amount is the monthly deposit × the number of months, and the interest earned is zero.