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RD calculator: see what your monthly deposits will grow into

Enter your monthly deposit, interest rate and tenure to see the maturity value and interest earned on a recurring deposit — using the standard quarterly-compounding formula Indian banks use.

Your RD details

₹5,000
6.5%
12 months

RD tenures are usually offered in multiples of 3 months, from 6 months up to 10 years.

Your RD outcome

₹0 Maturity value
Deposited
Interest
Total deposited₹0
Interest earned₹0
Maturity value₹0
An estimate, before tax. This assumes every instalment is paid on time for the full tenure and that the interest rate stays constant throughout. RD interest is taxable as income, and banks deduct TDS if your interest crosses the prevailing threshold — this figure does not account for tax.
FD Calculator SIP Calculator Recurring deposit vs SIP How SIP returns are calculated

How RD interest is calculated

A recurring deposit takes a fixed monthly instalment, but banks compound the interest quarterly, not monthly. The standard formula they use (matching what most RD calculators, including a bank's own, use) is:

Maturity value = R × [(1 + i)n − 1] / (1 − (1 + i)−1/3)
where R is the monthly deposit, i is the quarterly interest rate (annual rate ÷ 4 ÷ 100), and n is the tenure in quarters (months ÷ 3).

The exponent of −1/3 in the formula is what accounts for deposits landing in different months of each quarter rather than all at the quarter's start — it's a standard interpolation, not an approximation we invented. Because compounding is quarterly while deposits are monthly, the exact figure a bank calculates can differ slightly from this formula depending on their day-count convention, but this is the widely used industry-standard method.

RD vs SIP vs FD

An RD is a bank deposit — the rate is fixed for the whole tenure and the amount is guaranteed by the bank (within deposit insurance limits), similar to an FD but funded monthly instead of as a lump sum. A SIP is a market-linked mutual fund investment — potentially higher returns over the long run, but not guaranteed and subject to market risk. An RD suits money you want to grow safely and predictably; a SIP suits money you're comfortable seeing fluctuate for potentially higher long-term growth.

FAQ

Common questions

Why does my bank's RD calculator show a slightly different number?
Small differences are normal and usually come from exactly how a bank counts days within each quarter for deposits made in different months. The underlying approach — monthly deposits, quarterly compounding — is the same standard method used across most banks and calculators.
What happens if I miss an instalment?
Most banks charge a small penalty for a missed or late monthly instalment, and repeated defaults can lead to the RD being closed early on the bank's terms. This calculator assumes every instalment is paid on time.
Can I withdraw an RD before maturity?
Most banks allow premature closure, usually with a reduced interest rate applied as a penalty, similar to an FD. Check your bank's specific terms.
Is RD interest taxed the same as FD interest?
Yes — both are taxed as income at your slab rate, and both are subject to TDS once your interest crosses the prevailing threshold in a financial year.
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