RD Calculator
Calculate recurring deposit maturity value and interest earned
Maturity Amount
₹3,54,954
- Total Deposited
- ₹3,00,000
- Interest Earned
- ₹54,954
Before tax. RD interest is taxable at your slab rate.
Breakdown
- Monthly deposit
- ₹5,000
- Number of instalments
- 60
- Interest rate
- 6.50% p.a.
- Compounding
- Quarterly
- Total deposited
- ₹3,00,000
- Interest earned
- ₹54,954
- Maturity amount
- ₹3,54,954
Composition
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How this is calculated
Formula
M = Σ P × (1 + i)^(mₖ/3) — each instalment compounded quarterly for the quarters it is invested
- M
- = maturity amount
- P
- = monthly instalment
- i
- = quarterly rate = annual rate ÷ 4 ÷ 100
- mₖ
- = months the k-th instalment stays invested
With your numbers
- 1Quarterly ratei = r ÷ 4 ÷ 1006.50% ÷ 4 ÷ 100 = 0.016250
- 2Instalmentsmonths = years × 125 × 12 = 60 instalments of ₹5,000
- 3Compound each one separatelythe first for the full term, the last for one month₹3,00,000 deposited grows to ₹3,54,954
- 4Interest earnedinterest = M − (P × months)₹3,54,954 − ₹3,00,000 = ₹54,954
- Quarterly compounding, not monthly. This is the single most common error in RD calculators — modelling an RD like a SIP compounds twelve times a year instead of four and overstates the maturity value.
- Because each instalment is invested for a different length of time, the effective return on the whole scheme is well below the headline rate — the last instalment earns roughly one month of interest.
- The figure is pre-tax and assumes every instalment is paid on time.
What is a recurring deposit?
A bank deposit you feed with a fixed amount every month for a fixed term, at a rate locked in when you open it.
It is the fixed-income equivalent of a SIP: the same monthly discipline, without the market risk or the market return.
Key features
- • Rate fixed for the full tenure at the time of opening
- • Interest compounded quarterly, credited at maturity
- • Typically ₹100 minimum a month; tenures from 6 months to 10 years
- • Missing an instalment usually attracts a penalty
- • Covered by DICGC insurance along with your other deposits at the bank
Frequently Asked Questions
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