RD Calculator
Recurring deposit maturity value. Work out what a fixed monthly recurring deposit will be worth at maturity, with quarterly compounding.
About the RD Calculator
A recurring deposit takes a fixed amount from you every month and pays a contracted rate on each instalment for the time it remains on deposit. Because your first instalment earns interest for the whole tenure and your last earns it for a single month, the maturity value is not the instalment multiplied by the rate - each deposit has to be compounded separately.
Recurring deposit maturity
M = SUM of R x (1 + r/4)^(months remaining / 3)
- M
- Maturity value
- R
- Monthly instalment
- r
- Annual interest rate (as a decimal)
Indian banks compound recurring deposits quarterly, so each instalment is grown over the number of quarters it remains invested.
Using this calculator
- Enter the amount you will deposit each month.
- Set the RD interest rate offered.
- Choose the tenure in years.
- Compare the maturity value against your total deposits.
RD Calculator FAQs
How is RD interest calculated?
Each monthly instalment earns interest only for the months it stays on deposit, compounded quarterly. The first instalment earns for the full tenure and the last for about a month, so total interest is far less than the headline rate on the total deposited.
Is an RD better than a SIP?
An RD gives a guaranteed, contractually fixed return with no market risk, which suits goals within a few years. A SIP invests in market-linked funds with higher long-run potential and real downside risk. Time horizon should decide between them.
What if I miss an RD instalment?
Most banks charge a small penalty for each missed instalment and may close the account after repeated defaults. The maturity value is recalculated on what you actually deposited, so it falls below the original projection.
Is RD interest taxable?
Yes. Recurring deposit interest is added to your income and taxed at your slab rate, and TDS applies once interest crosses the annual threshold. There is no special exemption for recurring deposits.
Can I withdraw an RD early?
Premature closure is normally allowed with a penalty, and interest is repaid at the rate applicable for the period actually completed rather than the contracted rate. Partial withdrawals are generally not permitted.
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Important: this calculator provides general information and arithmetic only. It is not personal financial, tax or investment advice. Projected returns are illustrations based on the rate you enter, not guarantees, and market-linked investments can fall in value. Verify current tax rates and scheme terms before acting, and consult a qualified adviser where the decision matters.