RD Calculator
Calculate Recurring Deposit maturity with quarterly compounding. Enter monthly deposit, interest rate and tenure to see total deposited, interest and maturity.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the formula & steps
How the RD Calculator Works
This calculator estimates the maturity value of a Recurring Deposit (RD). Enter your monthly deposit, the annual interest rate and the tenure in months, and it returns your total deposited, the interest earned and the final maturity amount. A recurring deposit lets you invest a fixed sum every month and earn interest that compounds quarterly, the standard for Indian banks.
The Formula
Each monthly instalment earns interest for the time it remains invested, compounded quarterly:
Maturity = Σ deposit × (1 + r/4)^(months invested ÷ 3)
where:
- deposit = the fixed monthly amount
- r = annual interest rate as a decimal (e.g. 7% = 0.07), and r/4 is the quarterly rate
- months invested = for the instalment paid in month m of an n-month RD, this is
n − m + 1
The first deposit stays invested the longest and earns the most interest; the final deposit earns interest for just one month.
Worked Example
Suppose you deposit ₹5,000 every month at 7% per annum for 60 months (5 years):
- Total deposited = 5,000 × 60 = ₹3,00,000
- Each instalment is compounded quarterly for its remaining tenure
- Maturity value ≈ ₹3,59,664
- Interest earned = 3,59,664 − 3,00,000 = ₹59,664
Maturity at Different Tenures (₹5,000/month at 7% p.a.)
| Tenure | Total deposited | Maturity value |
|---|---|---|
| 12 months | ₹60,000 | ₹62,311 |
| 24 months | ₹1,20,000 | ₹1,29,099 |
| 36 months | ₹1,80,000 | ₹2,00,686 |
| 60 months | ₹3,00,000 | ₹3,59,664 |
Why Choose a Recurring Deposit
- Forced saving habit: a fixed monthly outflow builds discipline.
- Guaranteed return: the rate is locked at opening, so the maturity amount is known in advance.
- Low risk: RDs are backed by the bank and, in India, covered by deposit insurance up to the prescribed limit.
Important Notes
- Interest is compounded quarterly by most banks; this calculator follows that convention.
- RD interest is fully taxable and may attract TDS — RD does not qualify for a Section 80C deduction (unlike PPF).
- Premature withdrawal usually carries a penalty and a reduced interest rate.
For a one-time lump sum instead of monthly instalments, use a fixed deposit calculator; for market-linked monthly investing, compare with a SIP.
Frequently asked questions
How is RD maturity amount calculated?+
Banks compound recurring deposit interest quarterly. Each monthly instalment earns interest for the number of quarters it stays invested, so the first deposit earns the most and the last earns the least. Adding the matured value of every instalment gives the final maturity amount.
What is the formula for a recurring deposit?+
Maturity is the sum over all instalments of deposit × (1 + r/4) raised to (months invested ÷ 3), where r is the annual rate as a decimal. Some banks publish a simpler approximation, but quarterly compounding is the standard used here.
How much will a 5000 monthly RD give after 5 years?+
Depositing ₹5,000 a month for 60 months at 7% per annum gives a maturity of about ₹3,59,664 — ₹3,00,000 deposited plus around ₹59,664 in interest, assuming quarterly compounding at a fixed rate.
Is RD interest taxable?+
Yes. Interest earned on a recurring deposit is fully taxable as income from other sources at your slab rate. Banks deduct TDS if the interest across your deposits exceeds the threshold in a financial year. RD does not offer a Section 80C deduction.
Can I withdraw an RD before maturity?+
Most banks allow premature closure, but they usually apply a penalty and pay interest at a reduced rate for the period the deposit was held. Partial withdrawals are generally not allowed; you close the account and receive the reduced amount.