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Calculates

RD Calculator

Calculate your recurring deposit maturity value and interest earned.

Calculated & verified for mathematical accuracy·Reviewed by the Calculates Editorial Team

Recurring deposit details

0 – 10,00,000

The instalment is fixed for the whole tenure and cannot be changed later.

0 – 15
1 – 120

2 yr — 24 instalments

Compounding frequency

Maturity amount

₹1,28,762

Payable after 24 monthly instalments at 6.75% p.a.

Total deposited
₹1,20,000
Total interest
₹8,762
Effective annual rate
6.92%
Interest per instalment
₹365
  • Deposited₹1,20,000
  • Interest₹8,762

Interest adds 7.3% on top of what you deposit. Each instalment earns only for the months remaining until maturity, so an RD pays less than a lump-sum FD of the same total. Figures are before TDS.

About this calculator

A recurring deposit turns a fixed monthly habit into a guaranteed lump sum, without needing the whole amount upfront the way a fixed deposit does. Each instalment starts earning the day it lands, so your first payment compounds for the entire tenure while the last earns for barely a month. This calculator adds up that staggered series and shows what you will actually receive on the maturity date.

How to use this calculator

  1. Enter your monthly instalment

    The amount debited every month for the whole tenure. RD instalments cannot be varied once the account is opened, so pick a figure you can sustain even in a tight month — banks charge a penalty for missed payments.

  2. Enter the RD interest rate

    Use the rate on your bank’s recurring deposit card for your chosen tenure. RD rates usually track FD rates closely, and senior citizens typically receive a small premium on top.

  3. Set the tenure in months

    Most banks accept anything from six months to ten years, in multiples of three. The tenure is entered directly in months because that is how RD contracts are written and how instalments are counted.

  4. Read the deposited-versus-interest split

    The result separates what you paid in from what the bank added. On short tenures the interest share is small; extend the tenure and watch it climb as the early instalments accumulate more compounding time.

Formula

M = Σ [ Pᵢ × (1 + r / n) ^ (n × tᵢ) ] for i = 1 … N
  • M is the maturity value — the sum of every instalment grown to the maturity date.
  • Pᵢ is the monthly instalment, identical for each of the N payments.
  • r is the annual interest rate as a decimal, and n is the compounding frequency — 4 for the quarterly compounding Indian banks apply to RDs.
  • tᵢ is the time in years that instalment i stays on deposit: (N − i + 1) / 12. The first instalment gets the full tenure, the last gets one month.
  • N is the number of instalments, which equals the tenure in months.
  • Because each instalment has a different holding period, an RD cannot be collapsed into the single-exponent formula an FD uses; the terms have to be summed.

Worked example

Inputs

  • Monthly instalment (P): ₹5,000
  • Interest rate (r): 6.75% p.a.
  • Tenure: 12 months (N = 12)
  • Compounding: Quarterly (n = 4)

Calculation

Quarterly rate = 0.0675 / 4 = 0.016875 Instalment 1 grows for 12 months: 5000 × (1.016875)^(4 × 12/12) = 5,346.14 Instalment 2 grows for 11 months: 5000 × (1.016875)^(4 × 11/12) = 5,316.40 ... Instalment 12 grows for 1 month: 5000 × (1.016875)^(4 × 1/12) = 5,027.99 M = sum of all 12 terms = 62,226.90 Deposited = 5000 × 12 = 60,000

The RD matures at ₹62,226.90 against ₹60,000 deposited, so the interest earned is ₹2,226.90. That is well under a full year of 6.75% on ₹60,000, because the average instalment was only on deposit for about six and a half months.

What the result means

  • Total deposited is money you already had — only the interest figure represents what the bank contributed, and it is the number to compare between providers.
  • The interest looks modest relative to the rate because your money is not all working for the full tenure. Averaged across instalments, roughly half the tenure applies, which is exactly why an RD trails a lump-sum FD of the same total.
  • The effective annual rate reflects quarterly compounding and is the fairest basis for comparing an RD against other fixed-income options.
  • Interest is taxable at your slab rate and TDS applies once the bank’s annual threshold is crossed, so the amount reaching your account will be lower than the maturity figure shown here.

Related calculations

  • Compare the RD maturity against depositing the same total as a single FD upfront, to price the convenience of paying monthly.
  • Try a longer tenure at the same instalment and watch the interest share grow disproportionately.
  • Run the same monthly amount through the SIP calculator to weigh guaranteed RD returns against market-linked ones.

Frequently asked questions

How is RD maturity amount calculated?

Each instalment is treated as its own small deposit and grown to the maturity date, then all of them are added together. The first payment compounds for the full tenure, the second for one month less, and so on down to the final instalment which earns for a single month. Indian banks compound quarterly even though the deposits are monthly, which is the convention this calculator follows.

Why is my RD interest lower than an FD at the same rate?

Because your money is not on deposit for the same length of time. In a twelve-month FD the entire sum earns for twelve months, whereas in a twelve-month RD the average instalment sits for only about six and a half months. At an identical rate the RD therefore pays roughly half the interest — the trade-off for not needing the full amount upfront.

What happens if I miss a monthly instalment?

Banks levy a small penalty, commonly ₹1 to ₹2 per ₹100 of the instalment for each month of delay, and the maturity value drops because that instalment compounds for less time or not at all. If several consecutive instalments are missed, many banks reserve the right to close the account prematurely and settle it at the applicable savings or reduced deposit rate.

Can I withdraw from my RD before the tenure ends?

Partial withdrawals are generally not permitted; you can only close the account entirely. On premature closure the bank recalculates interest at the rate applicable to the period completed rather than the contracted rate, and usually applies a penalty of around 1%. Several banks also enforce a minimum lock-in of one to three months during which no interest is paid at all.

Is RD interest taxable?

Yes. Recurring deposit interest is added to your income and taxed at your slab rate, and since 2015 it has been subject to TDS on the same basis as fixed deposits — 10% once interest across your deposits with that bank exceeds ₹40,000 in a financial year, or ₹50,000 for senior citizens. Submitting Form 15G or 15H can prevent the deduction if your total income is below the taxable limit.

Should I choose an RD or a monthly SIP?

They solve different problems. An RD gives a contractually guaranteed maturity value backed by DICGC deposit insurance up to ₹5,00,000, which suits goals within a few years where you cannot afford a shortfall. A SIP into mutual funds has historically delivered more over long horizons but can fall in value, so it fits goals far enough out to absorb a bad stretch of markets.

What is the minimum and maximum RD tenure?

Most Indian banks accept recurring deposits from six months to ten years, typically in multiples of three months, with minimum instalments starting as low as ₹100 at public sector banks. Post office recurring deposits work differently, running on a fixed five-year term with the option to extend for another five.

Can I open an RD for a child or jointly with someone?

Yes. Recurring deposits can be opened jointly, and minors can hold one either through a guardian or independently from the age of ten at most banks. Joint accounts usually offer either-or-survivor operation, which keeps the funds accessible to the surviving holder without a separate claim process — a common reason families prefer joint RDs.

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