Recurring Deposit (RD) Calculator
Free RD calculator: enter a monthly deposit, interest rate and tenure to see the recurring deposit maturity amount and total interest earned.
Total deposited
₹3,00,000
Interest earned
₹59,664
Maturity value
₹3,59,664
Tenure: 60 months · 60 monthly deposits
This is an estimate before tax, with interest compounded quarterly as most Indian banks do. Banks may treat a part-quarter slightly differently, so confirm the final figure with your bank.
How recurring deposit interest is calculated
In an RD you deposit a fixed amount every month. Each instalment earns interest only for the months it stays in the account, so earlier deposits earn more than later ones. Interest is compounded quarterly, and the maturity value is every instalment plus its interest.
Maturity = D × g × (gⁿ − 1) ÷ (g − 1), g = (1 + r / 4) ^ (1/3)
- D = your monthly deposit
- r = annual interest rate, as a decimal (7% = 0.07)
- g = the monthly growth factor implied by quarterly compounding
- n = number of months (and number of deposits)
Frequently asked questions
What is a recurring deposit?
An RD lets you deposit a fixed amount every month for a chosen tenure at a fixed interest rate, and collect the total, with interest, at maturity. It builds a savings habit without needing a large starting amount.
What happens if I miss an instalment?
Banks usually charge a small penalty for each missed or late instalment, and some close the RD after repeated misses. The rules differ by bank, so check yours.
RD or SIP?
An RD earns a fixed, bank-declared rate, so the outcome is predictable but usually modest. A mutual fund SIP has no guaranteed return, with higher potential and higher risk. Compare both using this calculator and the SIP calculator.
Is RD interest taxable?
Yes. The interest is added to your income and taxed at your slab rate, and TDS may apply above a threshold. This calculator shows interest before tax.