Recurring Deposit Calculator
A recurring deposit is the saver's mirror of a SIP: one fixed instalment lands in the bank every month, and each instalment earns interest from the quarter it arrives. It locks a rate for its tenor, so you know the maturity amount up front while committing only a few thousand rupees at a time. Built for salary earners who want a guaranteed return without arranging a lump sum, the monthly debit is half its value.
Enter values
Results
- Maturity value
- ₹1,28,425.30
- Total deposited
- ₹1,20,000.00
- Interest earned
- ₹8,425.30
- Deposited so far
- Value at year end
How is the Recurring Deposit calculated?
Enter the monthly instalment, the annual rate your bank quotes and the tenor in years. The calculator applies the standard quarterly-compounding RD formula — the same one printed on your bank's own product page — and returns the maturity value, the total you actually deposited and the interest earned. The bar chart compares money-in against value at every completed year, which shows the point where compounding starts to pull ahead of your deposits.
Formula
M = P × ((1 + i)^n − 1) × c ÷ (c − 1) where: P = monthly instalment i = quarterly rate = annual rate ÷ 400 (7% → 0.0175) n = number of quarters = years × 4 c = ∛(1 + i), which converts quarterly growth to a monthly instalment's share
Example
Monthly instalment: ₹5,000 · Rate: 7% per year · Tenor: 2 years Total deposited = 5,000 × 24 = ₹1,20,000 Maturity value ≈ ₹1,29,099 · Interest earned ≈ ₹9,099 That works out to roughly ₹379 of interest a month on the growing balance. Run the same ₹5,000 at 6.5% for five years and the deposit matures at about ₹3,54,954 on ₹3,00,000 deposited.
Things to remember
The RD's rate is locked for its tenor — a falling-rate cycle never touches you, and a rising one leaves everyone else averaging higher. Breaking the deposit early costs penalty interest, so match the tenor to your spending date. For a course fee or trip due in two years, an RD maturing that month is the strategy.
Frequently Asked Questions
What is the formula for RD maturity?
M = P × ((1 + i)^n − 1) × c ÷ (c − 1), where P is the monthly instalment, i the quarterly rate (annual rate ÷ 400), n the number of quarters and c the cube root of 1 + i. Every instalment compounds from the quarter it is deposited, which is why the result beats simple interest on the average balance.
Is an RD better than a fixed deposit?
Neither is universally better — they fit different cash flows. An FD needs a lump sum and usually pays the same or a slightly higher rate; an RD locks that rate family while you build the amount monthly. If you have the lump sum today, the FD wins; if your money arrives with your salary, the RD is the one that works.
What happens if I miss a monthly RD instalment?
Banks charge a late fee — commonly a flat amount per missed instalment — and a pattern of misses can let the account fall into default, after which the bank may close it and pay you out early. Set up an auto-debit the day after payday; an RD only compounds what actually arrives.
Is recurring deposit interest taxable?
Yes. RD interest is added to your income and taxed at your slab rate. Banks deduct 10% TDS under Section 194A once FD and RD interest together cross ₹40,000 in a year (₹50,000 for senior citizens), unless you file Form 15G or 15H with no tax payable.
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